# Cost of living in other countries

**URL:** <https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780>\
**Category:** Factual Questions\
**Created:** [March 8, 2019, 6:19pm UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780 "2019-03-08T18:19:13Z")\
**Posts on this page:** 20\
**Page:** 1

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**Author:** ![Mrdeals](https://avatars.discourse-cdn.com/v4/letter/m/ea666f/32.png) [@Mrdeals](https://boards.straightdope.com/u/Mrdeals)\
**Post date:** [March 8, 2019, 6:19pm UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/1 "2019-03-08T18:19:13Z")

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I was curious and googled cost of living in various countries across the globe.

One of the main indicators that popped up was “McMeal” which, maybe wrongly, assumed was a meal at McDonald’s or another fast food place.

I was kind of shocked that pretty much the cheapest Mcmeal I found was $5.00 USD…which is pretty similar to that of the US.

Kind of surprised me that no matter what the exchange rate we all basically pay the same for fast food.

So where does the USD have the most power? Where can I go to get a $0.50 Big Mac Meal?

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**Author:** ![Riemann](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/riemann/32/3133_2.png) [@Riemann](https://boards.straightdope.com/u/Riemann)\
**Post date:** [March 8, 2019, 6:24pm UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/2 "2019-03-08T18:24:54Z")

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> [@Mrdeals](#):
>
> So where does the USD have the most power? Where can I go to get a $0.50 Big Mac Meal?

I’m a bit confused by the OP, you know there is a well known Big Mac Index, right? It was started by The Economist as a slightly tongue-in-cheek, but actually somewhat useful, measure for PPP.

> **[Big Mac Index](https://en.wikipedia.org/wiki/Big_Mac_Index)**
>
> The Big Mac Index is a price index published since 1986 by The Economist as an informal way of measuring the purchasing power parity (PPP) between two currencies and providing a test of the extent to which market exchange rates result in goods costing the same in different countries. It "seeks to make exchange-rate theory a bit more digestible." The index compares the relative price worldwide to purchase the Big Mac, a hamburger sold at McDonald's restaurants.
> The Big Mac index was introduced ...

There’s an article & map that’s not behind a paywall here, indicating that the answer to your question appears to be Egypt.

> **[Mapped: The countries with the cheapest Big Macs](https://www.telegraph.co.uk/travel/maps-and-graphics/mapped-big-mac-index/)**
>
> A Big Mac might taste the same the world over – but the price varies wildly.

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<div class="post-metadata">

**Author:** ![Mrdeals](https://avatars.discourse-cdn.com/v4/letter/m/ea666f/32.png) [@Mrdeals](https://boards.straightdope.com/u/Mrdeals)\
**Post date:** [March 8, 2019, 6:29pm UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/3 "2019-03-08T18:29:12Z")

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I actually didn’t know about the Big Mac index, really interesting, thanks!

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**Author:** ![Colibri](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/colibri/32/1841_2.png) [@Colibri](https://boards.straightdope.com/u/Colibri)\
**Post date:** [March 8, 2019, 6:36pm UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/4 "2019-03-08T18:36:04Z")

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> [@Mrdeals](#):
>
> I was kind of shocked that pretty much the cheapest Mcmeal I found was $5.00 USD…which is pretty similar to that of the US.

I don’t know where you are looking, but [this site](https://www.numbeo.com/cost-of-living/country_price_rankings?itemId=3) has a more than 5-fold range, with the most expensive being Switzerland at $13.86, and the cheapest Tunisia at $2.62. The US is is near the middle of the range at $7.00.

A McMeal or its equivalent would be a luxury item in many countries, so you are never going to find one at $0.50. It includes a (relatively) big hunk of beef, fresh lettuce, a special kind of roll, and other items that would not be standard for lunch items in many country. You _will_ find a filling lunch for $0.50 or less, but it will consist of rice or noodles with small bits of chicken or fish.

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**Author:** ![Colibri](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/colibri/32/1841_2.png) [@Colibri](https://boards.straightdope.com/u/Colibri)\
**Post date:** [March 8, 2019, 6:38pm UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/5 "2019-03-08T18:38:59Z")

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> [@Colibri](#):
>
> I don’t know where you are looking, but [this site](https://www.numbeo.com/cost-of-living/country_price_rankings?itemId=3) has a more than 5-fold range, with the most expensive being Switzerland at $13.86, and the cheapest Tunisia at $2.62. The US is is near the middle of the range at $7.00.

Note that this is for a “McMeal,” which I assume includes fries and a drink. **Riemann’s** link is for a Big Mac alone.

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**Author:** ![md2000](https://avatars.discourse-cdn.com/v4/letter/m/73ab20/32.png) [@md2000](https://boards.straightdope.com/u/md2000)\
**Post date:** [March 8, 2019, 7:49pm UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/6 "2019-03-08T19:49:56Z")

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The Economist index came from the observation that McDonalds sources local products wherever possible and is a stickler for consistency - they have a dedicated department to test assorted suppliers to ensure the food tastes the same everywhere. Thus, the same food components, locally sourced, in most countries in the world - that’s a pretty good way to compare actual buying power versus nominal exchange rate to truly evaluate cost of living. If based on the published exchange rate a Big Mac costs twice as much in Baluchistan or Tashkent, then the cost of living is higher than the exchange rate would indicate.

Except in India, where they don’t have all-beef patties - it’s all chicken. Fun fact, just around the corner from the Golden Temple in Amritsar is the only Vegetarian McDonalds in the world. And in many places in the Muslim world, they use “beef bacon”. Tastes pretty good.

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**Author:** ![Wesley\_Clark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wesley_clark/32/20581_2.png) [@Wesley\_Clark](https://boards.straightdope.com/u/Wesley_Clark)\
**Post date:** [March 8, 2019, 8:11pm UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/7 "2019-03-08T20:11:55Z")

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The issue with cost of living differences is that some items are far more impacted than others.

Food costs don’t seem Impacted that much by country. Probably because food is bought and sold on the international marketplace so its price is probably fairly universal unless subsidized.

However medical costs can have gigantic differences between nations (especially the us vs developing nations). Real estate too. Anything labor intensive or whose price is determined by the local economy.

But other things like cars or food probably aren’t affected as much. I’d assume an equal meal or automobile is roughly the same price no matter where you buy them after excluding taxes.

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**Author:** ![bob\_2](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bob_2/32/3341_2.png) [@bob\_2](https://boards.straightdope.com/u/bob_2)\
**Post date:** [March 8, 2019, 9:34pm UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/8 "2019-03-08T21:34:04Z")

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> [@md2000](#):
>
> The Economist index came from the observation that McDonalds sources local products wherever possible and is a stickler for consistency - they have a dedicated department to test assorted suppliers to ensure the food tastes the same everywhere.

Any American who has visited Europe, and especially the UK, will attest that our Big Macs are nothing like the ones you have at home.

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**Author:** ![Driver8](https://avatars.discourse-cdn.com/v4/letter/d/b5a626/32.png) [@Driver8](https://boards.straightdope.com/u/Driver8)\
**Post date:** [March 8, 2019, 9:48pm UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/9 "2019-03-08T21:48:35Z")

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> [@md2000](#):
>
> The Economist index came from the observation that McDonalds sources local products wherever possible and is a stickler for consistency - they have a dedicated department to test assorted suppliers to ensure the food tastes the same everywhere. Thus, the same food components, locally sourced, in most countries in the world - that’s a pretty good way to compare actual buying power versus nominal exchange rate to truly evaluate cost of living. If based on the published exchange rate a Big Mac costs twice as much in Baluchistan or Tashkent, then the cost of living is higher than the exchange rate would indicate.

Does it accurately reflect the cost of living though? My understanding is that in some countries things like McDonalds are somewhat different from the standard diet and in some ways considered a foreign luxury. It’s a bit like those lists of “most expensive places to live” that rate places like the Sudan or something as really expensive. But what they really mean is that it’s really expensive for some dude from the United States or England to go live there in an expat community that imports all the stuff they’re used to at home. The cost of living for a local would be substantially lower if you took into account the actual food staples and the like.

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**Author:** ![Colibri](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/colibri/32/1841_2.png) [@Colibri](https://boards.straightdope.com/u/Colibri)\
**Post date:** [March 8, 2019, 10:00pm UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/10 "2019-03-08T22:00:21Z")

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> [@bob\_2](#):
>
> Any American who has visited Europe, and especially the UK, will attest that our Big Macs are nothing like the ones you have at home.

Especially not the [Royale with Cheese.](https://www.youtube.com/watch?v=08bzBAKCRlM)

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**Author:** ![Dahu](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dahu/32/3416_2.png) [@Dahu](https://boards.straightdope.com/u/Dahu)\
**Post date:** [March 9, 2019, 10:15pm UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/11 "2019-03-09T22:15:16Z")

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> [@bob\_2](#):
>
> Any American who has visited Europe, and especially the UK, will attest that our Big Macs are nothing like the ones you have at home.

Is this really the case? I worked in the US for a few years and was an occasional visitor to McD’s. I don’t like the Big Mac so can’t comment on that, but other stuff I found to be pretty consistent.

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**Author:** ![sps49sd](https://avatars.discourse-cdn.com/v4/letter/s/a9a28c/32.png) [@sps49sd](https://boards.straightdope.com/u/sps49sd)\
**Post date:** [March 11, 2019, 3:45am UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/12 "2019-03-11T03:45:54Z")

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> [@bob\_2](#):
>
> Any American who has visited Europe, and especially the UK, will attest that our Big Macs are nothing like the ones you have at home.

Really? I ask because I visited Japan in 1987 (Team Spirit 87; I still have the keychain) and ran across a McDonald’s in a mall. After weeks of ship food the Quarter Pounder siren call was too much.  
The burger and Coke tasted exactly the same, but there was corn instead of fries.

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**Author:** ![Isamu](https://avatars.discourse-cdn.com/v4/letter/i/7c8e57/32.png) [@Isamu](https://boards.straightdope.com/u/Isamu)\
**Post date:** [March 11, 2019, 4:01am UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/13 "2019-03-11T04:01:44Z")

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> [@sps49sd](#):
>
> Really? I ask because I visited Japan in 1987 (Team Spirit 87; I still have the keychain) and ran across a McDonald’s in a mall. After weeks of ship food the Quarter Pounder siren call was too much.  
> The burger and Coke tasted exactly the same, but there was corn instead of fries.

There’s fries these days.

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**Author:** ![puddleglum](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/puddleglum/32/137_2.png) [@puddleglum](https://boards.straightdope.com/u/puddleglum)\
**Post date:** [March 11, 2019, 3:39pm UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/14 "2019-03-11T15:39:50Z")

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According to Expatistan Tunisia has the lowest fast food prices in the world. However McDonalds is listed as coming soon there. The american fast food restarants there are Papa Johns, Fatburger, KFC, and Pizza Hut.

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**Author:** ![Novelty\_Bobble](https://avatars.discourse-cdn.com/v4/letter/n/a3d4f5/32.png) [@Novelty\_Bobble](https://boards.straightdope.com/u/Novelty_Bobble)\
**Post date:** [March 11, 2019, 7:06pm UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/15 "2019-03-11T19:06:53Z")

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> [@bob\_2](#):
>
> Any American who has visited Europe, and especially the UK, will attest that our Big Macs are nothing like the ones you have at home.

I love me a big Mac and have eaten them across the world and to be honest, they seem pretty consistent to me. I know they certainly try to keep them much the same.

Some who care more about such things might be able to pinpoint a difference and that might be an issue for them but “nothing like” doesn’t ring true to me YMMV (your Mac may vary)

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**Author:** ![septimus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/septimus/32/410_2.png) [@septimus](https://boards.straightdope.com/u/septimus)\
**Post date:** [March 11, 2019, 7:52pm UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/16 "2019-03-11T19:52:58Z")

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Relative pricing varies between different types of goods. In countries where labor is cheap, food items may still be expensive because agriculture there is less mechanized. Gasoline, prerequisite for much, will be cheaper than U.S. pricing only in major petroleum-producing countries, I think.

The MacDonalds Index seems rather silly to me. You can buy a largish meal from a fast-food shop in Thailand for less than $1, but it won’t be Western food or McDonalds.

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**Author:** ![md2000](https://avatars.discourse-cdn.com/v4/letter/m/73ab20/32.png) [@md2000](https://boards.straightdope.com/u/md2000)\
**Post date:** [March 11, 2019, 9:25pm UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/17 "2019-03-11T21:25:40Z")

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> [@Driver8](#):
>
> Does it accurately reflect the cost of living though? My understanding is that in some countries things like McDonalds are somewhat different from the standard diet and in some ways considered a foreign luxury. It’s a bit like those lists of “most expensive places to live” that rate places like the Sudan or something as really expensive. But what they really mean is that it’s really expensive for some dude from the United States or England to go live there in an expat community that imports all the stuff they’re used to at home. The cost of living for a local would be substantially lower if you took into account the actual food staples and the like.

If a Big Mac is a higher end luxury for the average wage-earner, then that certainly is a reflection of the cost of living issues. Sorry, Big Mac index was intended to be more a gauge of the accuracy of currency exchange rates. It was not intended that it should reflect “equal to one hour’s wage” (Or, two hours in Arkansas). More likely, it was to reflect whether the same basket of goods cost the same at published exchange rates - in this case, very common food goods; same two all-beef patties, cheese, pickles, lettuce, onion and sesame seed bun. And …special sauce ingredients.

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**Author:** ![Mighty\_Mouse](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mighty_mouse/32/7776_2.png) [@Mighty\_Mouse](https://boards.straightdope.com/u/Mighty_Mouse)\
**Post date:** [March 11, 2019, 10:06pm UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/18 "2019-03-11T22:06:18Z")

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I have eaten at McDonalds in Paris, London, Barcelona, Beijing, Tokyo, Toronto and all over the US.

Except in London, where I had some lamb kabob thing in a naan, the rest were pretty much what I’m used to.

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**Author:** ![UDS](https://avatars.discourse-cdn.com/v4/letter/u/ecae2f/32.png) [@UDS](https://boards.straightdope.com/u/UDS)\
**Post date:** [March 12, 2019, 1:17am UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/19 "2019-03-12T01:17:05Z")

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> [@md2000](#):
>
> If a Big Mac is a higher end luxury for the average wage-earner, then that certainly is a reflection of the cost of living issues. Sorry, Big Mac index was intended to be more a gauge of the accuracy of currency exchange rates. It was not intended that it should reflect “equal to one hour’s wage” (Or, two hours in Arkansas). More likely, it was to reflect whether the same basket of goods cost the same at published exchange rates - in this case, very common food goods; same two all-beef patties, cheese, pickles, lettuce, onion and sesame seed bun. And …special sauce ingredients.

Except I’m not sure how much of the price of a hamburger represents the cost of the ingredients, but my guess is that the bulk of the price represents premises costs, labour costs, franchise/licensing costs and the owner’s profit margin.

Plus, as others have pointed out, the issue in many places is not so much that a Big Mac is a luxury purchase, as that it’s an exotic or novelty purchase - you’re buying a “typical American experience” more than you’re buying a meal. And therefore novelty/exotic/specialty pricing will apply.

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**Author:** ![Balthisar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/balthisar/32/2825_2.png) [@Balthisar](https://boards.straightdope.com/u/Balthisar)\
**Post date:** [March 12, 2019, 5:33pm UTC](https://boards.straightdope.com/t/cost-of-living-in-other-countries/830780/20 "2019-03-12T17:33:41Z")

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I’ve also had Big Macs in much of the world: various parts of western Europe, South Africa, Thailand, China, Canada, Mexico… they’re pretty consistent.

> [@Driver8](#):
>
> It’s a bit like those lists of “most expensive places to live” that rate places like the Sudan or something as really expensive. But what they really mean is that it’s really expensive for some dude from the United States or England to go live there in an expat community that imports all the stuff they’re used to at home. The cost of living for a local would be substantially lower if you took into account the actual food staples and the like.

China was like this. A box of Kellogg’s Frosted Flakes for $12, or only $8 if I wanted the Thailand version. Frozen Butterball brand turkey for $70. My rent was $3400 per month for a duplex, because there are nearly no single-family homes, and even my duplex neighborhood was filled with extremely wealthy Chinese. I had a small skirt of grass that was large enough for a patio set and my two grills.

Oh, I was given a cost of living allowance for living in China. It was about $1500 to $1800 per month, based on a common basket of goods that included food and consumer goods. Consumer goods are expensive as heck in China, at least, if you want good commercial brands. They’re all imported, you see, even the ones made in China.

I wouldn’t want to live in China at my equivalent economic class.

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