GayPatriot

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The Big Mac Index

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Some people consider the price of a McDonald’s “Big Mac” to be a reality check for what is happening to consumer prices. Why?

  • Fast food is widely consumed, outside “the one percent”. A Big Mac may be a price that real people pay often.
  • The price reflects not only food costs, but also costs for hourly labor and benefits, commercial real estate, transportation, energy, manufacturing equipment and packaging.
  • Until a few years ago, changes in the price of a Big Mac tracked changes in the government CPI (Consumer Price Index) fairly well.

In recent years, Big Macs have gone up rather more than the CPI. Why? Several different explanations could be put forward. The least likely explanation is that McDonald’s has suddenly become inefficient at making Big Macs.

Another possible explanation is that the government keeps toying with how it calculates CPI, looking for ways to understate consumer price inflation. That is, to hide it. Which is in the government’s direct, financial interest: that way, the government can make smaller inflation adjustments to Social Security, income tax brackets, inflation-indexed bonds, etc. Plus the political optics are better.

Courtesy of Forbes, Big Mac Index Shows Official CPI Underreports Inflation:

What is the graph saying?

  • In 1996, the average Big Mac cost $2.36.
  • Going by the government CPI (and assuming Big Macs are still a good reality check), the average Big Mac in 2013 should have cost $3.49.
  • But it really cost $4.33, which is a lot more. (The price virtually doubled in 17 years; and of the increase, nearly half is “unexpected” by the CPI.)
  • The increase started in the early Naughties, but more of it is recent, in the last six years.

So, whom do you believe? Our noble government which always looks out for you? Or your lyin’ eyes, when you go to buy a Big Mac?

I believe my eyes. I’m more likely to to hit Starbucks or In-N-Out Burger than McDonald’s; but in all 3 cases, I’m always a little shocked at how their prices have gone up from 10, 5 or even just 1-2 years ago. Poor people, who may eat at fast-food restaurants often, must really feel it.

Bonus question: Why would things have changed in the last six years? Who has been in charge of the government – that is, both the CPI calculation, and our general economic policies?

“It’s our choices that make us fat, not McDonald’s”

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I do NOT recommend this guy‘s diet, but he claims to have lost 56 lbs and counting, eating all McDonald’s – all the time.

Get regular exercise and honestly limit your calorie intake, and you will moderate your weight…it’s math. (Or science; take your pick.)

Paula Deen and more, at American Thinker

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I hadn’t visited there in awhile, but longtime commenter TGC put me on to this piece about Paula Deen. As many have noted, the frenzy against her seems ridiculously out-of-proportion: one occasion of saying the N-word privately 30 years ago, and her career now is to be destroyed.

The Deen witch-hunt may be an exercise in minority privilege, or/and, as Voshell’s piece suggests, it may be that Deen is several things which the Left simply hates: a Christian; a proponent of (delicious) lard, butter and sugar; a self-made woman (who doesn’t much push leftism); and more.

Once you’ve had one, you can’t stop. Some other AT pieces caught my eye:

UPDATE (from Dan): There is a little more to the Paula Deen story, suggesting that she was negligent in allowing her brother to engage in “juvenile behavior” while working at a restaurant they both owned (via Jim Geraghty’s Morning Jolt available by subscription).

UPDATE (from Jeff): That link still doesn’t give enough to justify firing her. “A moonlight-and-magnolias romantic view of Southern culture and history”, and a “redneck clod” brother who (gasp!) needs drug treatment and watches pr0n…Probably not news to Deen’s public.

UPDATE (from Jeff): What rusty just added in the comments from blacklegalissues.com, would be more serious. Systematic abuse of minority employees, something everyone should condemn – if it’s true. First question to ask is, whether it is true. If it is, I’ll join with the Deen-bashers.

UP-UPDATE (from Dan): I saw that post yesterday from blacklegalissues.com on Facebook and had planned on looking into it as time allows. If that story bears out, then, Paula Deen’s actions are in a word, despicable and she merits the condemnation she has been receiving in the media (and more). But, my preliminary research suggests that her greatest crime appears to be a failure to supervise a mean-spirited sibling; he may be responsible for the worst excesses.

Still, this bears looking into.

UPDATE (from Jeff): Worth noting that Deen is reportedly a Democrat, and that Jimmy Carter defended her a few days ago. Since I know that Democrats can be racists and have a tradition of racism in their party, I don’t take either of those as necessarily in Deen’s favor; for now, I am really just noting them.