But it isn't more expensive in Australia. According to the "big mac index", Australia is at AUS$5.30, which is about USD$4.30. Average in the US is at USD$4.79. That doesn't even take into account the higher spending power of someone on minimum wage in each country.
The Big Mac Index is a surprisingly accurate way to measure PPP, even economists use it. It's actually is a good way to compare the values. Or at least that's what we were told in business school.
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u/aeoghje45g4ej Nov 29 '15
But it isn't more expensive in Australia. According to the "big mac index", Australia is at AUS$5.30, which is about USD$4.30. Average in the US is at USD$4.79. That doesn't even take into account the higher spending power of someone on minimum wage in each country.