Big Mac benchmark
It takes the average Bangkokian 46 minutes to earn a Big Mac
This may look like a lot of money, but how many hamburgers will it buy?— EPA |
Geneva - Residents of Tokyo have the highest purchasing power in the world, edging out people in Los Angeles, Sydney, London and Toronto, according to a new survey by the Swiss banking giant UBS that uses the Big Mac as its benchmark.
Tokyo scored at the top of the survey, which aims to eliminate variables such as exchange rates, even though it is one of the most expensive cities in the world, UBS said in its recent "Prices and Earnings" report.
"Wages only become meaningful in relation to prices - that is, what can be bought with the money earned," it said.
The bank calculated the "weighted net hourly wage in 14 professions" and divided it into the local price of "a globally available product," for which it chose McDonald's flagship hamburger.
"On a global average, 35 minutes of work buys a Big Mac," it said. "But the disparities are huge: in Nairobi, one-and-a-half hours' work is needed to buy the burger with the net hourly wage there. In the US cities of Los Angeles, New York, Chicago and Miami, a maximum of 13 minutes' labour is needed."
In Tokyo, it takes a mere 10 minutes. Bogota, Colombia, came in last among the 70 cities surveyed at 97 minutes.
Bangkok, at 46 minutes to earn the price of a Big Mac, was one of the bottom 10 ranked countries.
The UBS survey, conducted every three years, rated Oslo, Norway, as the most expensive city, on the basis of the cost of a basket of 122 goods and services, excluding rent. It was followed by London; Copenhagen, Denmark; Zurich, Switzerland; Tokyo; Geneva; New York; Dublin, Ireland; Stockholm, Sweden; and Helsinki, Finland.
The least expensive cities were Manila, Philippines; Delhi; Buenos Aires; Bombay and Kuala Lumpur.
UBS said that if the cost of housing was included, "life is particularly expensive in London and New York."
The bank also compared wages. In that contest Copenhagen was top, with an index of 118.2. For that comparison, New York - in fifth place - was taken as the base with an index of 100. Second place went to Oslo, followed by Zurich and Geneva. London was in sixth, followed by Chicago, Dublin, Frankfurt and Brussels.
At the other end was Delhi with an index of 6.1.
"In the cities of western Europe and North America, workers in 14 representative professions earn a gross hourly wage averaging $18 (673 baht); in the eastern European and Asian cities examined, the figure was only $4-5."
But taxes and social security payments take a big bit in northern Europe.
Rankings were similar to the last survey in 2003, with changes resulting largely from shifts in foreign exchange rates, the study said. New York and Chicago dropped in the expensive cities ranking, mostly due to the weaker dollar.
"Shanghai and Beijing, meanwhile, remain comparatively inexpensive despite an economic boom because the national currency, the renminbi, has so far resisted pressures to appreciate."
Workers in Seoul, South Korea, work the longest. Those in Paris have the shortest working week. "Based on a 42-hour work week, Asian workers labour about 50 days a year more than their peers in Paris," the study said. AP
edge out
only just beat
flagship
the most important thing produced by a company
gross hourly wage
how much you earn per hour, before deductions (e.g., for tax and insurance)
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social security
money provided by the government to support unemployed people, disabled people and the elderly, among others
a big bit
a large part
weaker dollar
when the dollar is worth less than it used to be, if compared to other currencies
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appreciate
increase in value
peers
people of the same age or social position
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