McDonald's proves INFLATION?

Question

Not everybody eats at McDonald's, the world's largest fast food chain.

But the company is used as an economic indicator.

In the United States, in the last 10 years, prices at McDonald's have more than doubled, a clear sign of inflation.

What do you think?

CrazyGirl2 · Accepted Answer

I don’t think McD''s is a leading economic indicator! According to an ad I saw on Youtube, In 1985 the cost of a Big Mac Meal Deal was $2.59 (and that was on sale for limited time. Source: below.). To establish real dollar inflation, you really need to look at the amount of time someone had to work in the past to buy that Big Mac Meal, and how long they have to work now to earn the money to buy that meal deal today! In 1985 the minimum wage was $3.35 per/hr. With the cost of that (on sale) Bic Mac Meal being $2.59, an employee would have to work 46 minutes to buy a Big Mac in 1985.

Today the cost for a Big Mac Meal Deal is $9.29 (source: nbcchicaho. com). According to Zip Recruiter The average starting wage for a McDonalds employee is between $8.61 and $11.15 per/hr. (with some stores paying almost $13.00 per hr.) If we just go with the averages. the average wage for a McD's employee is today $9.88 per/hr. (8.61 +11.15 / 2). So today the average McD's employee needs to work 94% of an hour (b/c 9.29 (average Big Mac Cost), is 94% of 9.88 (the average hourly wage of McD's employees). So today a McD's employee need to work 56 minutes to buy a Big Mac Meal.

That's a difference of 10 minutes. So in 39 years the average annual real work/hours inflation for a minimum wager to buy that Big Mac Meal has risen only15.38 seconds of work per/hr, per year to buy a Big Mac Meal. That is literally only.5 or (½) a cent increase per/hr every year, of work/hrs to make up for the price increase for the last 39 years. That is not a lot of inflation. The issue is the fact that inflation has shot up in just the last 3½ years! 2023 the average rate of inflation (ROI) was 4.1%, in 2022 the ROI was 8.0% (or 9.1% depending on sources), and in 2021 the ROI was 4.7%. So far this year, the 2024 inflation is 3.1% and we're only halt way through!
Compare that to the ROI in 2020 was 1.2%,
in 2019 it was 1.9%
in 2018 it was 2.49%
in 2017 it was 2.13%
in 2016 it was 1.26%
in 2015 it was 0.12%
in 2014 it was 1.62%
in 2013 it was 1.46%
in 2012 it was 2.07%
in 2011 it was 3.16%
in 2010 it was 1.64%

Include a caption for your image…(Source:

(Source for1985 McDonalds Price:

https://www.youtube.com/embed/VoP0tAvHcGY

)

purplepoppy · Accepted Answer

Prices will always rise, old people love telling you how back in the day if they had a shilling they could drink 6 pints, have a fish supper, a taxi home and still have change left. I think a better guide is to look at in terms of how long would you have to work today in order to buy a big mac meal compared to ten years ago.

MrOracle · Accepted Answer

It's not like anyone needs McDonalds to know that there has been massive inflation - look at what everything else costs. Rent. Groceries. Clothing. Energy. Etc.

You can't take out trillions of dollars of loans in the name of taxpayers (which is what the Biden admin has done) and give that money away to foreign countries or favored businesses, and not have massive inflation. You can't import 12M illegal immigrants - along with the endless associated costs of them (which will be on-going for decades), and not destroy the economy. You can't legalize drugs, defund the police, and effectively legalize low-level crimes, and decline to prosecute serious crimes, and not completely destroy the cities who implemented those policies - including running all of the businesses and a large percentage of the residents out of those cities - and not have a massive financial hit.

It boggles my mind that people can't see the consequences of these actions - they're entirely predictable and these things have been tried before and it has failed every single time and still people keep doing it.

Inflation - the government creating money out of thin air - is effectively theft of your money, because it devalues the money YOU have in order to give that stolen value to someone else. The government is effectively reaching into our pockets to give money to whatever thing they think is important - often things that they will personally benefit from. It's not an accident that the families of so many politicians are highly placed with military contractors (Boeing, Lockheed, Raytheon, etc.) and have tons of money directed back at them or their families because of the government contracts they award.

Curmudgeon · Accepted Answer

YES, but remember, Currency Inflation is not (just) a rise in prices. Currency Inflation is a loss in the purchasing power of your hard-earned money. Calling inflation rising prices is like calling a major earthquake crumbling buildings. Yes, that is the effect, but there is a cause.

It is also a "hidden tax". They won't come out and tax away your money, but if they make the money you have in your savings and investments worth less (get it? Worthless?), in order to pay for their programs, then they have achieved the same thing.

Now many people are now shifting away from investments in assets that lose value as the currency loses value, that is, bonds and most stocks, and shifting toward assets that will hold value (and even perhaps gain value) as people flock to them, that is, precious metals, real estate, and Cryptocurrencies (although these last ones can be dodgy as of late).

This shift in investing is often bad news, not because investing is bad, far from it, because rather than investing in more economic productivity and lending out money for new economic growth ventures, people are now investing in "rent seeking" or "hoarding" assets in order to hold their own in a now stagnating or even declining economy.

James The Foodie · Accepted Answer

I'm usually more about tracking truffles than tracking inflation trends, but you've got a point that's hard to ignore—even for someone like me who spends a lot of time debating whether sushi or pasta reigns supreme. The "McDonald's Index," if we can call it that, is a pretty down-to-earth way to look at how our money's value changes over time. When the price of a Big Mac jumps up, it's not just a signal to perhaps eat healthier—it's also a sign that our purchasing power is shifting. It's fascinating, really, how something as everyday as fast food can give us insights into global economic trends. It's a reminder that everything, even the price of a burger, is connected to the bigger picture. 🍔💸

exitseven · Answer

All the chain restaurants are jacking up their prices to keep pace with the higher costs of everything. My wife and I used to be able to dine out for around 40 bucks. Now it is more than 60 dollars

b_lova · Answer

I don't know if it's inflation or greed. I looked up the rates and at most it should be 30% increase if it was only inflation. So I can only assume corporate greed has pushed their prices so high.

I do know that I can't afford to eat out anymore so I have learned to cook the foods I enjoy and I'm happier for it. And I hope they inflate their rates right out of business.

RetroReviews · Answer

Inflation definitely is in full effect at a local pizza place I used to get 10 chicken wings for $10 now those same 10 chicken wings are $15 the increase took place in the last 2 years. I don't go to McD's no more I go to Burger King and Taco Bell mainly for fast food sometimes Wendy's

Chazmatazz269 · Answer

100% of pricing in the US is inflated, since the 1980s. When supply side economics became the norm, the prices of literally everything became artificially inflated. When people learn to boycott and do without so much that they take for granted, we can take back control of the economy. Not until then. Therefore probably never.

Siri137 · Answer

Have you also noticed that the burgers are now so much smaller than they used to be?

strateguy632 · Answer

the way to measure inflation is by basics:bread milk n eggs... n my grocery bill doubled in LESS than ten years... just during biden. paying people "more for bigger minimum wage" does not help them because... that bigger amount cannot buy anyway!

Likes2drive · Answer

That and the housing prices are definite proof of inflation, but eventually things are going to price themselves out and nobody’s going to buy them and more and more are going out of business where I live

Iron_Man · Answer

It’s gotten too expensive now for fast food like that. It’s jumped up now to over $7 dollars for just one quarter pounder with cheese and I can go through two of them easily. I’m not gonna spend all that money just to still be hungry on fast food over cooked hamburgers. Thats their policy they have to cook them well done. It’s mostly pretty hard especially after you let it sit for over five minutes not really worth that much

Nikki1989 · Answer

Even at 2014 prices people were getting totally ripped off.

Anonymous · Answer

inflation, hoeflation etc. don't matter everything getting more expensive with lower quality

NamerOfStars · Answer

First, that I'd like to see some sources on that, since McDonald's is a franchise, and the center doesn't set the prices, and secondly, that anyone doubting inflation at this point is an idiot.

slatyb · Answer

It's a sign of inflation but you also have to compare prices for other goods and services. Housing is much more expensive because there's very little new construction.

Rami_NL · Answer

1) Don't eat that trash 2) With whose money do you think that the wars in Gaza and Ukraine are being paid? Of course there are economic consequences

OtterMan68 · Answer

There are four main US causes behind the inflation since 2020 1: Congress 2: Trump admin 3: Biden admin 4: The fed Anyone who denies this is either partisan, economically ignorant, or both

RavVid · Answer

Given the numbers are accurate then you'd have to most prices have doubled. Is it due to wages increasing?

NathanDavis · Answer

some things are just consumerism... not to confuse the two

msc545 · Answer

You can barely buy a house where I live or under a million dollars. The houses that you can get for that price are less than 2,000 ft and old. What does that tell you?

Hispanic-Cool-Guy · Answer

Certainly. I paid 15 bucks and some change the other day just for a meal that once only cost around $7 dollars 7 or 8 years ago.

chrissykerdock · Answer

it's no longer a place for a cheap meal

DrPepper12 · Answer

It proves corporate greed more than inflation

In_Trance · Answer

Does anyone actually need proof?

Dongie · Answer

Have you thanked a liberal today?

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