How to properly consider the “fair ruble course” and why Bigmak is an unreliable witness of our prosperity

Every year, when The Economist magazine publishes its The Big Mac Index, the Russian press explodes: it turns out that the ruble is the most underestimated currency in the world. According to the Bigmak index, the dollar should cost 23 rubles! That is, the potential of the domestic currency is wow. If for two chopped cutlets in a bun, an American needs to pay five and a half dollars, Russian pays for the same two cutlets less than two dollars. Is this not a reason to admire the purchasing power of the ruble? Not quite so.

Catlet arithmetic

The arithmetic of the compilers of the Bigmak Index is what: if the mass product, burger, the same world is the same, then it should cost about the same money. And when a burger in different countries is different, then an unfair currency course is to blame for this.

And if in one currency of the cutlet there is a dollar, and in another currency - two dollars, then we greatly underestimate the first.

With regard to the ruble, the jokers from The Economist argue, it looks like this.

How is the "Bigmak index" for Russia

• In the United States, Bigmak costs $ 5.81, or about 444 rubles. (at the rate on the day of calculation $ 1 = 76 rubles).

• In the Russian Federation, you must pay 135 rubles for Bigmak, or $ 1.77.

• Having divided $ 5.81 into $ 1.17, we will see that “in dollars” Russian Bigmak is cheaper than American Bigmak by 3.28 times.

• Now, to establish a “fair ruble course”, it is necessary to divide 76 by 3.28, and - Bingo! - For the dollar, 23 rubles 24 kopecks should give.

And in Bigmaks I am much richer, the Russian could say.

The average Russian salary of 55,000 rubles is recounted through Bigmak is not 723 dollars equal to $ 2373, as in a rich country. And even the “median salary” - the amount less than which 50% of Russian workers receive - with the help of “Bigmak calculations” from 35,000 rubles ($ 461) turns into quite solid $ 1511.

We live well, it turns out. Unlike the poor Americans, who are forced to overpay for Bigmak three times.

The real price of "Bigmak"

But in fact, if you want to evaluate the availability of Bigmak in America and in Russia, then you need to count wrong.

For a truly “fair calculation” of the value of goods, you need to measure it “from the point of view of labor” - how long the Russian and the American needs to work to buy a Bigmak.

Bigmak is a mass food for poor, work in a fast food restaurant around the world is considered accessible to people with minimal qualifications, and fast foods pay a minimum salary (minimum wage) for it.

And the cost of Bigmak, counted through the minimum wage, will look like this in Russia and in America.

Fair "Bigmak Index" in terms of labor costs

What is in Russia

The federal minimum wage in the Russian Federation in 2022 is 13,617 rubles. per month. To find out the cost of the working hour, we divide this amount by 168 hours.

It turns out 81 rubles. per hour (approximately $ 1.07). That is, in two hours of minimally paid labor, a Russian person can earn one Bigmak (135 rubles). Even a little less, but we will not be so petty. Or half the Bigmak per hour.

What is in the USA

In the USA, Federal Minimum Wage (analogue of Russian minimum wage) is $ 7.25 per hour. That is, at an hour, an American earns almost one and a half Bigmak.

Nobody works for the federal minimum wage, you say, in reality it is much higher. This is true. But in America, too, no one works for Federal Minimum Wage. Let's compare regional minimums.

A specific example

For example, in St. Petersburg, the minimum wage is 21,500 rubles. per month or 127 rubles. per hour. We assume that this hourly payment is enough for one Bigmak at Russian prices.

In Boston , Massachusetts, Minimum Wage is $ 14.25 per hour, that is, it will be enough for almost two and a half Bigmak at American prices.

No matter how you count, the American salary is almost three times more in Bigmaks.

Say that the minimum wage is not an indicator, let's watch median salaries? Let's.

Like in the USA

The median salary in the United States in the fall of 2021 was $ 2883 per month, or $ 17.16 per hour. Almost three Bigmaks.

Like in Russia

Russian median salary - 35,000 rubles. per month, 208 rubles. per hour, or ... one and a half Bigmak.

No, this is not a ruble underestimated. This work is underestimated. And strongly.

On the site of the “witnesses of an expensive ruble” I would not mention either Bigmak or the place where it is prepared. Throughout the world, the “CREATIONAL Brigade” is a starting point for a person’s career without qualification. For a device, such a restaurant does not require a diploma - enough arms, legs and ability to read. True, the most minimum is paid. But in Russia in fast food they offer 25–35 thousand rubles. - A completely competitive salary, on many vacancies “with education” they offer no more. This is a teacher’s bet, if that.

One of two: either a transnational restaurant franchise is engaged in charity work, or

Russian employers are extremely low evaluate the qualifications of their workers and a person with a diploma pay no more than a person who is scientific to shout “a free cash desk!”.

The fairy tale about prices

In general, the fairy tale that products are cheaper in Russia is incredibly popular. The story of affordable Soviet products is the cornerstone of the myth of the “cheap USSR”.

In the Union, the products have never been cheap.

The secret certificate of retail prices for consumer goods signed by Deputy Chairman of the State Committee on Prices on December 14, 1965 said :

DOCUMENT. True about prices in the USSR
“Compared to the level of retail prices in capitalist countries, the level of retail prices in the USSR is relatively high

• for sugar (3 times higher),

• On oil animal, cheese, vegetable oil and margarine (2-3 times),

• for canned fish (3-3.5 times),

• For wine grape (4-5 times),

• for chocolate (10 times). "

Much more expensive than in the West were in the USSR and industrial goods.

• Shoes cost 2-3.5 times more,

• fabrics - 2-5 times,

• And women's linen - 4 times.

The socialist state sold to citizens the products of their labor with such an margin that did not dream of "capitalists-operators":

“In the United States, the price of sugar-sand is 27% and for a 40% dumplings of sugar price in the USSR. State costs at the retail price of sugar are 38%, and 62% - turnover and profit tax. ”

In Rolls-Royas, some Russians are much richer

However, if you want to find a consumer indicator that you can really be proud of, why not use the Rolls-Royce Index? In our country, Rolls-Royce is a completely consumer product. According to the results of last year, Russia became the largest market in Europe. In 2021, Rolls-Royce sales in the Russian Federation increased one and a half times-at the end of the year, more than 300 cars against more than 200 vehicles a year earlier were transferred to customers for the first time, the Avtostat analytical agency reported with reference to the Rolls-Royce Motor Cars press service.

It is clear that only such people are able to buy such a car, but is there few such people in Russia? And the Russian chief, for example, such a limousine is much more affordable than the American one.

It is clear that the price of Rolls-Royce depends on many factors, this is not a Bigmak for you, but in response to a request “Buy Rolls Royce in Russia”, Google shows a proposal to purchase the latest car for 33 million rubles. But it is too expensive, of course. Let there be 400 thousand dollars - for an even account. Yes, at least 350 thousand. In the United States, such a car costs about the same money.

Official data on the income of Russian chiefs in 2021 has not yet been published, but there is “information about income, property and property obligations of the Prime Minister and members of the Government of the Russian Federation for 2020”.

• The Minister of Industry and Trade declared 740 million rubles, or 25 Rolls ,

• Minister of Labor and Social Protection-27 million, or one Rolls-Royce ,

• Minister of Transport-359 million, or 12 Rolls-Rois .

Approximately. There are also fantastic earnings of ministerial spouses, but we will not call them just in case.

For comparison: in the same 2020, the American Finance Minister Janet Yellen could afford 12 Rolls at American prices. True, Yellen, an economist with a world -famous name, has not yet worked in the administration of Joe Biden that year.

And the official annual salary of the US president itself will be enough at best for two used Rolls-Royce.

So, in the sense of the accessibility of Rolls-Roisy, the Russian elite has long caught up and overtook America for herself.

In the sense of accessibility, cutlets and rolls for workers are not yet possible.

There is certainly some kind of connection between these achievements.