Three Economic Indices

A look at three unique economic and social indices that provide unexpected insights into different aspects of society and the economy.

Big Mac Index

• Used to measure purchasing power parity between currencies
• Compares Big Mac prices across different countries
• More accurate indicator of currency strength than government reports
• Uses Big Mac as common denominator across countries

Waffle House Index

• Used by FEMA to measure severity of natural disasters
• Three-color system to indicate impact:
  • Green: Fully operational with full menu
  • Yellow: Open with limited menu
  • Red: Closed (indicates severe situation)
• If Waffle House closes, "you know it's bad" (according to FEMA director)
• Based on Waffle House's reputation for staying open 24/7/365

DC Bear Index (Government Activity Indicator)

• Measures government activity through gay bar attendance in DC
• Drop in foot traffic at certain bars indicates increased government activity
• Recent example: Used to predict Iran missile strikes
• Works because government officials work late during crisis situations

Pizza Meter (Related Government Activity Index)

• Monitors pizza delivery patterns around government buildings
• Spike in late-night orders indicates major government activity
• Historical accuracy:
  • Predicted invasion of Granada (1983)
  • Predicted invasion of Panama (1989)
  • Recent example: Predicted Iran strikes
• Government attempted to counter this by:
  • Sending staff to pick up pizzas
  • Trying to "smoothen out the curve" of orders
• Originally inspired by Soviet intelligence techniques during Cold War
• Known as "Pizint" (Pizza + Intelligence)