When is a dollar worth more than a dollar?
When you’re in a city where the cost of living is low.
The purchasing power of the dollar varies widely across U.S. cities, and a cost of living calculator reveals that it costs more than twice as much to live in Manhattan as it does to live in Memphis.
To make the relative cost of living more understandable and relatable, we created the Quarter Pounder Index (QPI), a basic cost of living guide that uses the price of a McDonald’s quarter pounder with cheese to gauge cost of living differences between cities.
Like the Economists’ Big Mac Index, which measures the purchases power of various countries’ currency, the Quarter Pounder Index compares places based on the cost of a hamburger.
When the most and least expensive cities for a quarter pounder with cheese are graphed, the differences are striking:
- A McDonald’s burger costs more than twice as much in Juneau, Alaska as it does in Conway, Arkansas ($4.82 vs $2.24).
- Hawaii and Alaska take 40% of the top ten most expensive places, likely because of the increased shipping costs of these more remote states.
- The median price for a quarter pounder with cheese is $3.52
Juneau, Alaska: $4.82
Providence, Rhode Island: $4.52
Boston, Massachusetts: $4.49
See the rest of the story at Business Insider