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The big mac index is flawed in so many ways. Labour and tax components of the costs are wildly different in countries. Raw materials might be almost irrelevant
by yobbo 5y ago
The big mac index is flawed in so many ways.
Labour and tax components of the costs are wildly different in countries. Raw materials might be almost irrelevant in some places. Because of this, the quality of the dining experiences are wildly different, because each restaurant owner needs to justify their costs. Add to this the effect of competition, which itself depends on local markets.
- zeckalpha 5y agoThat’s the point. The PPP index is also flawed in many ways. This shows the limitations of any such index more clearly.
- mohanmcgeek 5y agoWhy is the PPP index flawed?
- zeckalpha 5y ago> Labour and tax components of the costs are wildly different in countries. Raw materials might be almost irrelevant in some places.
- mohanmcgeek 5y agoPPP calculations include tax and Labour cost. Not just raw materials.