Showing posts with label US vs Australia. Show all posts
Showing posts with label US vs Australia. Show all posts

Sunday, October 21, 2012

Seppos in Radelaide

Lydia and I decided to take a long weekend and embark on our first Seppo Road Trip.  We've had our car for nearly 8 months and we really haven't taken full advantage of our improved mobility beyond greater Melbourne, so we decided to take a long weekend and check out Adelaide.  The trip is about a 9 hour drive from Melbourne to Adelaide (and back) along the Western Highway:



View Larger Map

Having both driven extensively around the States in our respective childhoods, we're pretty familiar with the road-side scenery of Americana, but we had no idea what the Australian expanse, particularly west of Melbourne, had to offer.  As it turns out, it isn't much... For anyone who's driven in the States from Atlanta to Chicago via I-65 through Indiana, it's a lot like that, except less interesting. Over the nine hours, we passed through a total of 5 towns, many similar to what you'd see in south Georgia, except instead of one-stoplight towns, they're one-roundabout towns.  The highlights of the drive include the extensive bright yellow-flowered Canola fields, which are appealing at first, but after about an hour, become a bit mundane, and the Grampians, a mountain range west of Melbourne, that are pretty cool.  We may plan a camping trip out there in the not-too-distant future.  Driving through small-town Victoria and South Australia, we definitely invited some sideways looks from the gas (petrol) station employees.  Although all very nice, we on more than one occasion received the, "You're not from around here, are you?"

One rather notable experience was when we stopped at a gas station along our ride from Melbourne to Adelaide, I was privy to a truck driver's phone conversation with another truck driver.  Almost in shock, at last I found the Crocodile Dundee accent here in Australia- it's championed by the Australian road warriors!  I kept on hoping he'd find it necessary to comment on the inferior size of his colleague's cutting utensile, but sadly it never arrived...

The drive aside, we had a pleasant weekend exploring "the city of churches" and Ben Folds' city of residence.  We enjoyed sampling the local cuisine, including the notable Adelaide Pie Floater:

 
And we had a great time exploring the Barossa Valley and sampling some of the best Australian wine.  Check out the Seppo Radelaide video documenting our trip:


We really enjoyed our long weekend, although I'm not sure we'll be returning to Adelaide anytime soon.  And if we do, we'll choose to fly.

Tuesday, October 16, 2012

Movie Night: Mary & Max

Lydia and I happened upon Mary & Max, a claymation black-comedy film about a gawky girl from Mount Waverley (a Melbourne suburb) who, through letters, befriends a middle-aged man with Asperger's from New York City.  Max and Mary share a common bond in their difficulty fitting in in their respective worlds, and form a friendship through their exchange of letters and sampling of their respective country's sweets.

The movie is incredibly funny, albeit dark, and captures many of the subtle nuances between American and Australian culture. By far, one of the best movies I've seen this year, I can't recommend it enough.

Wednesday, September 26, 2012

Rocking the Vote

Courtesy of  militantlibertarian.org
It's that time again; like a bad case of food poisoning that recurs every four years with similar gastrointestinal symptoms; cramping, bloating, and of course, vomiting and diarrhea; I'm speaking of course, about the US Presidential Election.  While it doesn't exact it's havoc on one's body literally, it does metaphorically; the bloated political ads portraying the opposing candidate as a cold-hearted, treasonous scoundrel, the word vomit and debate diarrhea of the pundits, and the cramping, sickening tinge found in all Americans' stomachs.

Fortunately Lydia and I are spared from most of the mud slinging, as we can elude the political ads and the 24-hour American news networks, however it is all but impossible to avoid it in it's entirety, thanks in large part to Facebook, ads on Hulu, and the internets in general.  And while we're not faced with the immediate cross-fire and sideshow antics of the political left and right, we must in some ways answer for them.  As mentioned in an earlier post, Jerry Springer's America, a considerable number of unsavory news stories from the States do make it down under, not excluding American presidential election news, thus who could blame our friends for having some questions to the American political process?  Additionally, unlike in the States where it is standard social etiquette for one to refrain from asking another which candidate for which he will vote, it would seem the opposite is true here. That being said, it's a two-way streets, as I'm often asking questions about the Australian political process (and for what it's worth, Australian politics seem no more civil than American politics).  Some interesting lessons I've learned:

  1. It is compulsory to vote in Australia.  Failure to do so merits a $70 fine.  As a result, Mickey Mouse and Ronald McDonald receive a considerable amount of support from the Australian electorate
  2. The term "liberal" here is used in the (correct) classical sense, which would be called "libertarianism" in the States.  Really, the liberal party here is more akin to the Republican party in the States than Libertarian, and Labor to the Democratic party
  3. Australia has more political parties than the States, although due to (sometimes unintuitive) coalitions and party alliances, there really only remain two major contenders: Labor and Liberal.
  4. The Green party has won the most seats over Melbourne (for better or worse)
  5. There is no separation of powers between the court and the police here; you are prosecuted by an officer.
  6. Socialised healthcare has changed a lot of my socio-philosophical outlook on a lot of otherwise anti-liberal principles... it provides more justification for some of the "nanny state" laws here in Victoria... that being said, I don't necessarily agree with socialised healthcare.
  7. Labor Prime Minister Julia Gillard and former Labor prime minister Kevin Rudd are not good friends and are the source of a lot of current political controversy
  8. Australian elections can be called at any time by the party in power, but must be called at least once every four years
  9. Australian Parliament is twice as fun to watch on TV as is the US Congress, and half as fun as UK Parliament.  Like in the UK, there is heated exchange and name-calling, but just to a lesser extent, but more than in Congress.
  10. Many Australians know more about the American political system than Americans know about the Australian system
  11. Many Australians know more about the American political system than Americans know about the American system


My most recent lesson: Former Australian Prime Minister Bob Hawke once held a Guinness World Record for Beer "Skulling" (Chugging) 2.5 pints of beer in 11 seconds.  Here he is showing off his talent this year, age 82:

In his memoirs, Hawke suggested that this unique talent may have contributed to his political success more than any other, by endearing him to a voting population with a strong beer culture.... but I digress.

Despite the disarray that is the American Presidential election, and the increased ease with which I could shirk my "civic duty," I've resolved to vote via absentee ballot this year.  And while it looks like the Fulton County Board of Registration and Elections has finally entered the 21st century by offering the ballot electronically, it seems that they may have fallen a bit short, as the link they've provided is currently unavailable, at least via Australian internet connection.  Fortunately enough, I should still be able to access the site via a US proxy, and my vote will be heard... even if it is irrational to vote, at least in the context of an economic agent.

Friday, September 21, 2012

5 Minutes or Less: Christmas in September

Spring has sprung in Melbourne, which can only mean one thing... CHRISTMAS DECORATIONS.  Yes, in an international showdown of who can shamelessly capitalize on Christmas the earliest, the winner this year goes to large Australian retailer Myer, who has constructed a full Christmas display on the sixth floor of their flagship store in the Melbourne CBD:


I guess this is what happens when your locale doesn't celebrate Halloween or Thanksgiving; why not just jump straight to the big kahuna?  Merry Christmas!

Monday, September 3, 2012

Jerry Springer's America

This headline made the front page of a number of Australian news sources, including  The Age and The Sydney Morning Herald about a teenage girl from Georgia who had elective plastic surgery to avoid ridicule from her classmates. While the article is both philosophically and morally intriguing in its own right – the ethical dilemma of using medical methods to treat societal problems – it continues to befuddle me that this is the type of news that so often gains so much attention here in Australia rather than substantive news, influencing the Australian perception of the US and its citizens.

While I believe most Australians understand that Yellow Journalism does not accurately portray everyday American life, those that don't can certainly be forgiven, given how many sensationalist or exceptional stories make it down here.  Lydia and I can't help but bemuse which headlines from our homeland appear down here so prominently.  Many of these articles appear to exaggerate or even help shape the all-too-prominent freak-show perception of typical life in America.  It's both amusing and a little unsettling sometimes what some Australians believe to be commonplace in American life and the preconceived notions of my countrymen; ideas that all Americans are packing concealed 9mm handguns, that we can sue anyone with whom we disagree, and that without a valid health insurance card, our ambulances leave you to expire on the street.  While I have little doubt that many of these exceptional news stories are true, and I won't try and refute the fact that there are a lot of off-beat, backwards, and some downright crazy people in the States (as they are plentiful), I do fear that these stories evoke a contrived or misconstrued America.  Coupled with the fact that when most Australians travel to the States, their primary destinations are LA and Vegas, arguably the most inauthentic cities in the States, I fear there may just be a systematic misrepresentation of what America and Americans are really like.

Courtesy of 27blash6
To be fair, the portrayal of Australia and its people is also largely off-base in the States; think Crocodile Dundee, Outback Steakhouse, and Fosters; I can assure you these stereotypes are (mostly) not true.  As much as I cringe when I read news stories about the Octomom, Obama’s birth certificate, and the rampant gun violence in the States (granted, that last one might not be too off-base), I’m sure an Australian would just as well do the same when he learns how little the average American knows about Australia, or when goes to order his Bloomin’ Onion and reads about the train surfers in US newspapers in the States.  And as much as Lydia and I enjoyed Bill Bryson’s In a Sunburned Country, the book most definitely sensationalizes how deadly Australia really is.

One could make the argument that Americans bring it upon themselves, particularly in how we’ve both relatively recently shifted our foreign policy to become the “World Police,” the rise of the fundamentalist religious zealots, and our insatiable appetite for television shows like Jersey Shore, The Hills, or Biggest Loser.  Who could blame Australians, or the world at large, for having such a poor impression of Americans and what kind of people we are?  Perhaps I simply have rose-coloured glasses and the majority of my countrymen really are a bunch of dim, morally depraved obese oafs.  Perhaps the US and Americans that are represented in the news and media here are a more accurate representation of what America really is than what I perceive.  But if that is the case, I think I'd rather continue in my delusion; at least then I can still maintain some faith in my home country.

Tuesday, February 28, 2012

US Foods in Melbourne

I miss going to the grocery store and recognizing brands. For example, I always buy Gold brand four. Maybe there is no difference in the quality of Gold brand flour versus generic flour produced by US grocers like Giant/Harris Teeter/Whole Foods or Kroger. But, I know I like it. My parents always used it. Brand recognition makes for quick shopping.

Even with the increased cost of living in Australia, perhaps I'm actually saving money when I grocery shop here. I don't have brand recognition and familiarity triggering me to buy pricier brand names for easily substitutable goods, which is a good thing. However, there is something nice about not having to google things continually while shopping.

Just the other day I went to buy corn starch. I'm used to corn starch being easy to locate. In the States it would have taken finding a red cylinder of Rumford cornstarch (not to be confused with their baking powder, which I also use) and grabbing it. 

My brother borrowed some cooking supplies for a summer semester at college. When he returned them, the biggest container of Rumford corn starch and Morton salt were amongst the pots and pans. It made me laugh - who would ever need this much corn starch and salt? But right about now, I did. I missed home.

Corn starch is mundane. Trivial. Something I read in recipes and grab without consideration. But now, I stood in front of boxes labelled corn flour - and new this was going to be another of those well-that-took-way-longer-than-necessary shopping moments. I searched and searched and corn starch was nowhere to be found. "Is corn flour substitutable for corn starch? What really is corn starch anyways?" I thought. "Could I determine the answer to these questions from the ingredients?" I wondered. I grabbed two boxes. One box of corn flour listed ingredients as "Maize Corn flour". Okay, way to repeat cornflour in the definition, not helpful! But at least I recognized maize as meaning from corn, which was on the right track. In contrast, the other box of corn flour said something about wheat and on the front noted that it "Contains Gluten", so now I was really confused.

After pulling out my phone to google Corn Starch vs Corn Flour ("X" vs "Y" is not an uncommon search for me to do while shopping here) and struggling with the slow data connection within the grocery store I discovered:
  • Corn starch is a thickening agent preferred for certain sauces over flour because the sauces come out clear. (This made sense since I was attempting to replicate a Chinese meal I'd had in Melbourne, and the sauce was certainly supposed to be translucent).
  • Corn starch, cornstarch, maize starch, AND corn flour are all names for the same thing - starch extracted from corn.
  • Cornmeal is coarsely ground corn - and in some countries corn flour can actually mean finely ground cornmeal. However in the UK/Australia corn flour only refers to corn starch. {This was an issue when we were looking for cornmeal to make corn bread and actually needed ground corn not starch from corn.}
  • Corn is an old word for grain. So, the word corn can actually be simply referring to grain, hence, Corned Beef Hash (Beef salted with wheat-kernel sized grains of salt).
  • With the logic or corn <---> grain, Corn Flour in Australia can actually be Wheat Flour......You can extract starch from wheat the same way you can from corn.
After all this reading I realized I could buy Corn Flour, the one not made from wheat, and make my dish! I've decided at this point to chock up almost all grocery shopping experiences here as a learning experience. I rip away my assumptions - relearn - and in the process fill in gaps I never realized I had! I guess I also have to anticipate them being twice as long as expected.

All this exposure to new things on a daily basis can be really really tiring. From learning tram routes, to what a MYKI card is (a way to pay for trams). To getting comfortable with new phrases like 'Mackers' (pronounced Maccas, meaning McDonalds) and  'Ranga' (our new favorite a joking insult against red heads derived from the word orangutan). Even just having to learn to drive again - Matt has been a champ with the round abouts (I still need to learn!). Don't get me wrong, exposure to new things is also fun, and we love it here. But one day we got a nice reprieve from all this new stuff exposure.
With our trusty new a car, we took a trip to a magical world of imported US goods: USA Foods. I'd been to USA Foods once before, when a colleague drove me, to pick up some hot sauce for Matt's birthday. When we pulled up to the store we were pleasantly surprised that they had relocated down the block to a bigger and better location that was even more filled with delicious (mostly unhealthy) packaged goods.

Rounding one corner in the store I exclaimed "Oh my gosh, it's Rice A  Roni!!!!" My joy brought a laugh from a US Mom navigating the store with her family. She knew exactly where I was coming from. It's one of things things that you don't ever usually buy back home, but just seeing a familiar childhood brand made extremely happy. Just earlier I heard the same mom get excited by the Ben and Jerry's section and ask her kid if he saw Chubby Hubby anywhere in the freezer...


In place of the usual sound of parents saying "No", "Not today", "Put that back", "How did that get in here?!" to their kids for wanting to add Spaghettios and Capri Suns to the grocery cart, the parents themselves were wide eyed at the A&W root beer and Kraft Mac & Cheese.

Of course - I couldn't leave without stocking up on Reese's Peanut Butter Cups and Thin Mints. The big display topped with USA Flags didn't help the temptation, but these are the candies I miss the most. Chocolate and peanut butter combos are definitely not a thing in Melbourne. Even the nice chocolate store by more work doesn't stock any chocolate/peanut butter truffles.

Lastly, I've realized my true dedication to Woolite. I am willing to pay twice as much as usual for it. It seems like Melbourne has NONE of the same cleaning products. I may not be as neat as Matt, but I definitely have my favorite, familiar, cleaning products. I got super excited when we saw this area:


We did however decide not to pay $15 for a box of dryer sheets. Speaking of - Matt realized that they don't sell dryer sheets in Australia, or at least in Melbourne. When we asked some of our Australian friends about dryer sheets they had no idea what we were talking out. If our current day jobs don't pan out, Matt and I plan to start a business to take advantage of these untapped differing markets. So far we are going to sell dryer sheets in Australia. In the US, we are going to sell hard liquor pre-mixed with soda in a can, like this Jim Bean Cola pictured on the left. In Australia you kind find something like this (Jack Daniels Cola is another popular one) at most bars, sporting events, and liquor stores. Some may say it isn't very elegant, but it is pretty handy!

Beyond just grocery shopping, the same food familiarity issue runs into restaurants as well. Sure, even when I'm in the United States I can't typically take a trip to Tequlia Rose in Williamsburg,Virginia for their white dipping sauce and chorizo chicken fajitas found at when a craving hits. However, there are solid Mexican food standbys in most US cities. For burgers, even if I'm not near Charlottesville, Virginia (home of the The White Spot and Riverside), or Austin, Texas (The Theta Burger at Huts Burgers is delicious), Five Guys will do the trick. If no Five Guys is around there is likely another local burger joint.

Enjoying a Five Guys Burger with Matt in Athens GA during our trip back to the States over the holidays
The Melbourne restaurant scene abounds with amazing Asian food, hidden cafes, delicious brunch spots - I could go on. However, it is lacking in some areas. I really miss going out for Margaritas (well, a standby Mexican place) or Burgers (well, classic Americana diner of some sort).

Let's start with finding Tex-Mex in Melbourne. Results have been rough. We discovered a vegetarian place called Trippy Taco's, which fills our goat cheese filled quesadilla desires. However, being vegetarian, there are no beef fajitas, or chicken burritos...etc. They also don't serve margaritas. Taco Bills was okay, but out experience has to be something akin to when Chinese people used to authentic home cooking try Americanized Chinese food (speaking of which, as amazing as Melbourne is for Asian cuisine, I can't find sesame chicken anywhere! It is simply a staple of Americanized Chinese food...).  Salsas, which even our Australian friends urged us to avoid, served incredibly disappointing nachos and burritos which were bland and stale. At Mad Mex, for some reason sour cream comes in liquid form. To Matt's credit - he has mastered cooking queso, enchiladas, and tacos. For this, I am forever in his debt.

On the burger front - while I can't say I haven't found good burgers, they are always a little different than what I'm used to. Beets are served on burgers. Beets. While actually surprising tasty, you can imagine that it doesn't quite fill that void of missing home.

So, you can understand how incredibly excited we were when our friends told us about a place called Misty's Diner. It is touted as serving all things American - with specials on Thanksgiving and the Fourth of July. We decided to go as a group with our Australian friends and another couple they know. When we walked in, we were excited by the decor. Marilyn Monroe and Elvis Presley posters watched over us on the walls. There were diner booths with jukeboxes. The waitresses wore classic pink and black waitressing uniforms. Alongside mayonaise and ketchup (not tomato sauce) stood bottles of BBQ sauce (BBQ isn't even found here).

Slowly however things began to be amiss. My Girl wasn't on the Jukebox. The menu seemed like it was taking on, well, quite a lot. Everything was to the extreme: fried, huge, and/or coated in cheese. Matt said "Oh no" and pointed to a picture on the menu. I looked and saw fried mozzarella sticks, put between buttered slabs of white bread, and fried again. Oh dear. We sensed that this place was US food on crack.


Still excited, we ordered milkshakes and a Sierra Nevada for Matt. While I have to say that the shakes were pretty good (though they slightly curdled by the end of the meal) the rest of dinner was fairly disappointing. The fried pickles were, instead of sliced pickles, baby pickles fried whole. The stuffed peppers had a strange after taste and the fried mashed potato bites were...interesting. The gravy was peppered with grainy chunks of something. After the apps, we all sat back stuffed and feeling a little woozy. You know - that feeling you get after eating a random assortment of too much food that also isn't good for you. Like a bad buffet. Even with all this being said - I was still siked for my meal. I could understand the place being a little overzealous on the appetizers to show variety, IF they then had solid entrees. Well. My burger, if it was or wasn't, definitely tasted like a  frozen patty. Our fries, supposed to be covered in queso, were covered in a sort of tomato sauce with grated cheese on top. Matt's chicken fried steak. besides being chicken fried chicken and not steak, was covered with that grainy gravy and served with, at least what tasted like, instant mashed potatoes.


Misty, the owner of the restaurant, is the cut out pictured above to the left of the kitchen pass through and was actually also in the restaurant. While we did definitely appreciate the concept of the place, we weren't wowed by the actual food. However, we smiled to her nicely on our way out - and may be yet still be back back for pie. They apparently had blueberry, apple, and pumpkin but we were WAY too full. However, judging by the other food offered at Misty's we might be better off cooking it on our own. So far that's really been the only sure fire way to fill our nostalgia and craving for food back home.

The final score board-
USA grocery store: Awesome.
USA restaurant: Still looking for a good one.

Wednesday, October 5, 2011

5 Minutes or Less: Times are A-Changin

This weekend marked two important events here in Australia:

Lydia and I attended our friend's Grand Final barbeque, where we were treated to shredded beef and pulled pork sandwiches (cooked on a computerized barbeque grill to optimal temperature), cole slaw, and variety of deserts.  Lydia, being the bogan she is, chose to barrack for the Collingwood Magpies (last year's winner, after a controversial tie with St. Kilda), whereas I chose to barrack for the underdogs, the Geelong Cats.  Geelong had a come-from-behind victory over Collingwood to win 18.11 (119) to 12.9 (81). 



Highlights of the game included a pre-game show featuring Meatloaf, Geelong scoring the first goal within 15 seconds, and five minutes of continual replay of a player dislocating his shoulder and being (unsuccessfully) treated on the field.  Amittedly, the shoulder injury was not quite as unbearable as Willis McGahee's knee injury in 2003.

Also, on Sunday evening, our clocks sprung forward an hour, placing us now 15 hours ahead of our home time zones, that is until November 6th when the States "fall back," putting us 16 hours ahead of EST:


October 2 - November 6November 6 - March 11
EDTEST (Interim)EST (No DST)
12:00 AM9:00 AM8:00 AM
1:00 AM10:00 AM9:00 AM
2:00 AM11:00 AM10:00 AM
3:00 AM12:00 PM11:00 AM
4:00 AM1:00 PM12:00 PM
5:00 AM2:00 PM1:00 PM
6:00 AM3:00 PM2:00 PM
7:00 AM4:00 PM3:00 PM
8:00 AM5:00 PM4:00 PM
9:00 AM6:00 PM5:00 PM
10:00 AM7:00 PM6:00 PM
11:00 AM8:00 PM7:00 PM
12:00 PM9:00 PM8:00 PM
1:00 PM10:00 PM9:00 PM
2:00 PM11:00 PM10:00 PM
3:00 PM12:00 AM11:00 PM
4:00 PM1:00 AM12:00 AM
5:00 PM2:00 AM1:00 AM
6:00 PM3:00 AM2:00 AM
7:00 PM4:00 AM3:00 AM
8:00 PM5:00 AM4:00 AM
9:00 PM6:00 AM5:00 AM
10:00 PM7:00 AM6:00 AM
11:00 PM8:00 AM7:00 AM


Although we're still adjusting to the time difference, we're enjoying our extra hour of sunlight after work!

Wednesday, September 28, 2011

A Theoretical Analysis of Australia's Elevated Cost of Living

Disclaimer: In a departure from the content of our typical blog posts, I figured I'd incorporate one of my other passions aside from IT: Economics. I realize that economic policy, international trade, and the Weak Axiom of Revealed Consumer Preference doesn't light everyone's fire as much as it does mine, but this post is intended to apply what I've learned and read to our experience here in Australia, particularly in regards to international trade and public finance. If you're sock drawer is in urgent need of sorting, I would not at all be offended if you skip this post, as this isn't the most engaging or entertaining content you can find on the blog. Otherwise, please enjoy :-)

Picture courtesy of Macro Business Superblog
In some of our past posts, we haven't been shy in remarking how expensive Australia is relative to the US, particularly for common household goods (food, clothing, beer... the essentials). Most, if not the vast majority, of Aussies are well-aware of the [nominal] cost differential between Australia and the US. Most Australians I know and work with employ the practice of arbitrage, or buying goods abroad and either A.) shipping them to Australia, or B.) traveling abroad and purchasing their goods overseas, thereby maximizing their consumer surplus.  It is well-known here that for tailored suits, one is better off flying to Thailand than to purchasing them within Australia, as the total cost (flight included) can sometimes be less than purchasing an equiavalent product here in Australia (depending on the quality and quantity of suits purchased).

Already Lydia and I have endured the elevated costs of certain goods, that cost less to purchase and ship from the US than to purchase here.  One such example is our recent purchase of climbing shoes- the pair of Scarpa Thunder climbing shoes that I recently purchased at Paddy Pallin cost me AUD$143 (and that was with 20% off), as opposed to the exact same shoes at REI (not on sale) costing US$130 (so roughly AUD$131), which included international shipping.  We ended up opting to purchase the shoes here so we could climb same-day, however under other circumstances, it may be well worth waiting the two-weeks, and just shipping goods from overseas.

As evident in the above example, it is often not enough to simply look at market exchange rates to determine the differing costs of living (which until relatively recently weren't themselves at all useful- the US didn't switch to a floating-rate exchange rate until 1971, and China still persists in using pegged-rates for their Yuan- hence the infrequent squaking objections of US Dept. of Treasury Secretary Timoth Geitner that China is artificially devaluing its currency to improve its terms of trade, to which China typically replies, "We own your ass").  Nominal values are prices we see when we go to the grocery store, which include not only the value of the good, but also fluctuations in currency, particularly in regards to inflation and monetary supply.  Real values, in contrast, factor out currency fluctuations to determine the actual value of a particular good, or it's "real value".  Real values over time measure purchasing power.  It is nominal prices that result in the primary differences of prices between countries, such as the US and Australia, and what exchange rates intend to offset.


Picture courtesy of AES Wealth
 There exists a fundamental economic law, the Law of One Price, that states, excluding transcation costs (best illustrated by the cost of shipping from the US to Australia) and barriers to trade (best illustrated by import tariffs, customs tax, etc), that identical goods will have the same price in different markets, when expressed in real terms (or in the same currency).  From the Law of One Price, the Purchasing Power Parity principal is derived, which states that exchange rates should move to make the price of a basket of goods the same in each country.  Economists use the CPI (Consumer Price Index) to measure intra- and inter-country changes in price, often characterized as the "cost of living." The difficulty with this measure is finding an equivalent "basket of goods" that is of identical quality and components across the world, as different cultures consume different goods of varying quality and price.  Enter the famed "Big Mac Index" which identifies the price of a McDonald's Big Mac - a product that is comprised of identical or near-identical components and requires the same amount of labor to assemble worldwide- and compares this price across the world, taking into account exchange rates.  Effectively, the Big Mac Index measures the accuracy of currency exchange rates.  The exchange rate that leaves a Big Mac costing the same in dollars everywhere is the fair-value yardstick.  So how close is the Australian dollar to it's "fair value?"  Unfortunately, not that close:

Price (USD):4.07
Price (AUD):4.56
Implied PPP1.12
Actual Exchange Rate0.92
Margin of Error21.74%

So why is this figure so far off from what economic theory predicts?  The Economist "beefed-up" (their bad pun, not mine - oh the humor of economists...) the Big Mac index to account for different country's GDP per capita, as average prices should be lower in poor countries than in rich ones because labor costs are lower.  After controlling for GDP per capita ($46,860 in the States, $39,764 in Australia [both in USD]), we find that the Aussie dollar is "overvalued" by 12%- closer than our 22% calculation, but still a good ways off.  So why is the adjusted value still off?  A myriad of reasons explains this discrepancy to the PPP theory, but here are a few that seem to be the most obvious:
  1. Costs of non-tradeable goods - There is no theoretical reason why non-tradable goods and services such as property costs should be equal in different countries.  As it is, Australia's property costs generally far exceed that of the States.  These elevated property costs are capitalized in the price of goods.
  2. Policy climate - Although controlling for GDP per capita partially offsets this in the above example, the minimum wage laws still impact this figure.  Labor is considerably more expensive in Australia, particularly for the segment of workers that would be working in the fast food industry.  The minimum wage in Australia is $AUD15.51, whereas it is $7.25 in the States, which results in higher inflation, ceteris paribus.  Aside from minimum wage, a number of other Australian federal laws impact the price of goods (particularly agricultural).  In the case of bananas, Australia severely restricts their importation out of concerns for biosecurity and the Queensland flooding effectively destroyed this year's crop, the supply of bananas in the market as been severely diminished, thereby significantly increasing the price of bananas.
  3. Economies of Scale - Australia has less than 8% of the population of the US (although nearly comparable in land size, though much of it uninhabitable), thus McDonalds in Australia likely can't exploit the benefits of the downward sloping average cost curve as well as McDonalds in the States.  This applies to the general manufacture and production of must goods, as the Australian market as a whole is much smaller than the comparable market in the States.
  4. Taxes- Although my preliminary calculations indicate that Australian Income Effective Tax Rates are lower than those in the US (unlike the States, Australia doesn't charge state income tax, just federal), their equivalent consumption tax (10%) is included in the price of all goods.  Although sales tax varies in the States, it's on average lower (7.25%) than the GST here (10%).  Note that the GST is a Value Added Tax (VAT) and not a sales tax as it is levied in the States.  The significance of this is that a VAT is a much more efficient tax than a sales tax, though the difference is indeterminable to the end-consumer.  It may be relevant to note that Australia also heavily taxes alcohol on top of the GST, resulting in combined tax rates that may exceed $32%.  In-line with many of its socialist policies (in the literal sense, not in the "Obama is a socialist!" way), the alcohol taxes are pursuaint to a "sin-tax." 
  5. Transactions costs - Although less likely a factor for Big Macs, the transaction costs of moving goods in and around the country are a contributing factor to the higher price of goods.  Australia must import much of its consumer goods.  Many of Australia's top 25 imports are finished goods, which means a lot of cost is incurred in shipping and transporting these goods from overseas to local markets.  In contrast, Australia's top 25 exports include a majority of commodity goods.  The country's heavy reliance on commodity goods also leads to a higher volatility of its currency due to Australia often depending upon foreign capital investment.  As a result global economic pressures, the Aussie dollar is particularly subject to international credit market volatility (hence why the Aussie dollar dropped so much earlier this month in response to the European sovereign debt crisis).
For the above reasons and more, Australia is an expensive place to live, at least comparatively, but probably not as much as the media would lead many to believe.  Despite some of the populist tidings, it is not as simple as comparing prices here to prices abroad, or even just accounting for differing exchange rates.

One persistent theory, to which more than a handful of Australians subscribe (or at least grant some merit), is that the elevated prices are the result of tacit and explicit price collusion among Australian retailers that began with the 2000 Sydney Olympic games and subsequently were kept elevated after the games concluded.  Fundamental economic theory notwithstanding, I guess it makes for good tea conversation.

The fact of the matter is that each and every economy is very different, in terms of political climate, geographic implications, and population considerations.  Despite all of this, it would seem that Australia still is considered one of the best places to live in the world.

Sunday, September 25, 2011

5 Minutes or Less: Brewing Beer

This subject deserves  much more real estate on this blog than this post has granted, but I haven't posted too much about it up to this point as I fear once I get started, I'll never finish... so for now, we'll keep it confined to "5 Minute or Less" posts.

Thus far our beer adventures have turned up rather disappointing.  While we've only scratched the surface of the Australian Microbrew market, there is no doubt that it includes far less diversity than that of what it is in the States.  While we've discovered a few gems (though nothing on the magnitude of Terrapin Rye), we're still only just beginning our quest; after all, these things take time.  As both a means of furthering our own interest, as well as fulfilling a need not currently met by what we can find in stores, we've started to brew our own beer here in our apartment.  Our first brew is none other than a classic American Pale Ale (from a brew kit- no all-grain brewing yet...).  In our corner stands a 30L fermenter currently filled with 23L of fermenting golden deliciousness:





As part of the home-brewing process, we've had to start collecting empty crown-top beer bottles in which we will bottle our final product on Tuesday to bottle-condition and ferment.  We've enlisted the help of the Internet Cafe pizza bar downstairs, who have graciously provided us with their otherwise discarded empties- in return we've foolishly promised a bottle or two of the final brew, but failed to consider the potential that the beer turns out in a state that isn't consumable... only time will tell.

We'll keep our loyal readers posted as to how the Seppo Ale turns out!

Tuesday, September 20, 2011

Sharing Culture

Over that past month and a half, Lydia and I have been soaking up as much Aussie culture as possible, poking around town, attending footy games, eating Kangaroo and Tim Tams, and visiting Koala Sanctuaries.  It was high-time to share some of our cutlure with Australia, and what better time than at my birthday party last weekend.  Given our limited time and resources, we wanted to focus on one effort that is indubitably and quintessentially American- Apple Pie? Baseball? Obesity? Nay- Beer Pong!

Having spent a considerable amount of my college career partaking in the art of beer pong, and witnessing it's ability to bridge cultural, gender, and age gaps, we knew it was the perfect activity to which we should devote ourselves to share with our friends.  Unfortunately, we came to this realization rather late in the game and thus only had a week to tap into our creative inspirations, gather materials, and actually build our dream.  After careful planning, analyzing, and brainstorming, we determined the most appropriate way to decorate our masterpiece- in the traditional red and black livery of the fine institution that I attended and the football field where dreams are realized (or in the case of this season so far- crushed).  We briefly considered splitting the table in half- having one side of the table in UGA colors and the other in William & Mary. Lydia decided that given our limited time, the added complexity of integrating two different football fields into one, and William & Mary's nearly all-together lacking football program (I was surprised to hear that they had one at all... to which Lydia was quick to cite W&M outstanding academics), that the UGA table alone would suffice.

The weekend of September 3rd was devoted in part to obtaining these materials- the board, paint, tape, and plastic painters' shields.  Our immediate challenge was locating the above materials in a public-transportation accessible location.  One of the ongoing (although relative minor) challenges we face here in Australia is knowing where to find things that we need... there are no Home Depots, Best Buys, or [affordable] Targets here, so we're often left to our own devices (although aided by modern technology).  We recalled seeing a substantial hardware store up in Clifton Hill, having visited some of Lydia's family friends' friends that live there a few weeks ago.  We set out on our mission via the tram on Saturday the 4th and sure enough found the hardware store, which had a small selection of lumber and materials, tools, and equipment (roughly 1/20 of what the typical Home Depot stocks).  Unfortunately unlike the large hardware retailers back in the States, this hardware store did not offer cutting services.  Lacking the necessary power tools to do so ourselves, and determining the impracticality of purchasing our own (Lydia was particularly adept at this, while I devoted most of my cognitive efforts to what all I could accomplish around the house with a mitre saw), we opted to look elsewhere to find an establishment that could cut our beer pong table to official dimensions (as determined by the International Beer Pong Means and Standards Organization that I made up for this post):


Length1800mm
Width900mm
Thickness12mm

Sure enough, around the corner and a block or two over, we found a proper lumber wharehouse (closer to a lumber yard) where we were able to find a particle board (or a "chip board" as it is known in Australia) that met our exact dimensions; no cutting necessary. When picking up the lumber, a very helpful gentleman, whom few would mistake for working in a trade other than lumber, lended us a hand in retrieving the board and attempted to make friendly conversation.

Since Lydia and I have been here in Australia, we haven't had too hard of a time understanding the Australians around us; spare a few colloquialisms, slang, and minor pronunciation differences, we've been able to communicate effectively so far. Furthermore, we have become acquainted with the endearing though slightly derogatory term of "tradies." Tradies, is short for "tradesmen;" think electricians, car mechanics, plumbers, etc. You can drink a "trady coffee," which is the ubiquitious term of coffee that has a disproportionately higher volume of cream and sugar than to coffee, or if your pants fit too liberally in the back, you may be wearing "trady" pants. Nevertheless, Lydia and I hadn't yet really met with a Trady or could confirm any of these stereotypes. Then we walked into an Australian lumber yard... While it was obvious that the gentleman was very friendly (he went out of his way to ensure our needs were met, and was more than willing to lend a hand), communication proved... difficult. We had carefully navigated around any extended converstation and nearly made it out clear of any awkwardness or "faux pas," until the last exchange:

Trady: "Du yah 'avawayas t'geau?"
[Lydia and Matt exchange a bewildered look]
Matt: "um, sorry, what was that?"
Trady: "Du yah 'avawayas t'geau!?"
[awkward silence while fumbling for a response]
Matt: "Oh, no, thank you though"
Trady [half tempo]: "Nuou! Du-yah-'av-awayas t-geau wth'at?"
Matt [piecing together the syllabyls]: "Oh! No, not too far, just down to Victoria Parade. Thanks for your help
[Matt and Lydia leave before another question is asked, exit stage left]

After getting back to the entrance of the lumber yard, we were both surprised to find a more-than-adequate hardware store, spread in deceptively small buildings on either side of the entrance way. Lydia, enthused and enlivened with the promise of getting all of the necessary materials in one place asked the clerk for spray paint, which included the communication issue we experienced in our last exchange, although this time roles reversed:

Lydia: "Doyouhavespraypaint?"
Clerk: "I'm sorry?"
Lydia [More assertively]: "Doyouhavespraypaint?"
Clerk [bewildered]: "I'm sorry, I didn't understand you."
[Lydia turns around to Matt with a look of desperation]
Matt: "Do you stock spray paint?"
Clerk: "Yes, right over this way..."

After a thirty minute lesson from the more-than-helpful store clerks, and two summarized explanations of the rules of beer pong to bewildered Australians, we were on our way home, with wood board, red, green, white, and black spray paint, masking tape, and two plastic painters' shields. Not having the luxury of a car or ute, we decided to walk the journey home; after all, it was a straight shot.  Lydia entertained the idea of taking the tram home, but I dismissed it, as we'd have to walk one block West, wait on a tram, have to awkwardly board the tram with the large wood board, then have to get off at the nearest stop to our apartment and walk three additional blocks home.  So we set out on foot.

And that was a mistake.  Not having walked to the store from our apartment (we took the tram), I had misjudged the distance we had traveled by about half a mile, give or take.  The distance, coupled with the aerodynamics of a large flat surface and strong gusts of wind, made the journey less than enjoyable.  At first I insisted that I could walk the board home myself, so long as Lydia carry the other supplies.  That approach lasted about two blocks; after nearly taking off twice, I conceded that Lydia was right and we should have taken the tram.  Admitting defeat, I dejectedly took one side of the board, Lydia the other, and we set out the rest of the way home:


After walking what seemed like hours, enduring some perplexed and musing glances of passing pedestrians and traffic, and only some mild bickering, we happened upon a great discovery: adjacent to the public housing building halfway between the hardware store and and our apartment lay the next best thing to a flatbed truck - an abandoned shopping cart.  Leveraging the convenience of our new found transport device, we no longer had to walk our supplies home - we could roll it:



The shopping cart proved an asset, as we could double our pace and both walk forward, although it was still a two-person job.  While one of us powered the cart, the other had to ensure the board did not slide off, coupled with continually having to check over our shoulders to ensure an enraged vagrant was not in hot pursuit, it was easier said than done.  Nonetheless, we endured and made it the rest of the way home with our supplies, after toppling the configuration twice and drawing a minutia of blood only once.  All in all, we walked the 6ft x 3ft board 2.1km home, or 1.3 miles:



View Larger Map
With all of our supplies at home, we now faced the challenge of setting up an adequate space to actually paint the table.  Without a garage, basement, or other suitable construction area, we had to fabricate our own.  We briefly considered conducting our painting in the common court yard or in our designated parking space, however we decided against it both out of inconvenience and in consideration of apartment building guidelines.  Although we doubt any provision exists against the painting of drinking paraphanalia in common spaces, we didn't want to be the precedent for it to be amended.

This left our porch area as the only other suitable alternative, although the area was only slightly larger than the wood board itself, and we had to be extraordinarily careful not to inadvertently and permanently accent the surrounding area in GA colors.  Armed with our painters' masking plastic and masking tape, we delicately fabricated our studio, being sure to cover every exposed inch.  After finishing, our porch resembled something similar to the plastic "clean room" assembled to extract Elliot et al in E.T., or the "business room" in the popular TV series Dexter.

We systematically painted each layer of the table, starting with the green base layer, followed by the yard lines (which employed a good deal of measurements, computations, and taping), the external border and endzone letters, the red border, the characteristic "G" and the waterproof sealant.  At a drying time of 1 hour, precise measuring and remeasuring, and the cutting of stencils (required for the endzone letters and Georgia "G"), the table took disciplined devotion of pre- and post-work efforts every day of the week.  Lydia actually paid for a cab one day during lunch to come home and apply an additional coat of paint.  In short, the table was not thrown together in haste:





I would be remiss if I failed to mention my slight "oversight."  At the risk of being the butt of many jokes, I cannot withhold information from our readers...  When determining the placement of the G emblem, or more specifically the first coat of the white oval background behind the G, I painfully measured and remeasured, to the millimeter, the precise place where the G should be applied vertically on the table.  All told, it took me around 25 minutes to be comfortable that the oval was centered and could be painted.  After carefully taping down the mask, setting up our makeshift paint shield (derived from a derelict box found in the recycle room at the base of the building) I applied the first coat of white, which applied quite nicely on top of the green- to the point where no additional coats need be applied.  After letting the oval dry for an hour, Lydia and I evaluated our strategy for applying the thin red outline, when it struck me, as subtle as a punch to the gut; although I had painstakingly centered the oval vertically on the table, I had failed to consider doing the same horizontally.  After all, I just needed to center the 50-yard line within the stencil, and that was that.  Enter in Einstein's theory of relativity, or so how it applies to beer pong tables.  In my devotion to centering the oval perfectly vertically, I chose not the 50-yard line as my horizontal center, but one of the 40-yard lines.  Up close measuring on the table with our posterboard paint masks covering the rest of the table and thus obscuring the other yard lines, I was none the wiser; after all, the 40-yard line looks identical to the 50-yard line.

After some earnest self-discipline and reproach, as well as some choice words not fit for publication, we had no other choice but to paint over the misplaced oval in green and re-paint the segment of the 40-yard line to redo the Georgia G emblem.  All told, this pushed back our timeline about 3 hours- mostly as a result of having to wait for paint to dry.

Despite this, we managed to finish the table in time (although sans yard-line marker numbers as we cut our stencils too large) and were able to enjoy the table for the party.  And it was a hit- nearly everyone in attendance was able to play a game of beer pong on the table, followed by a untold number of games of flipcup:

Erica and Jay defending their cupsThe finished table, pre-party

Bradley and Tom mid-gamePost-flipcup Discussion


The table endured and served its purpose- we were able to share our cultural tradition with our new-found Aussie friends and bring a little bit of home to Australia.  The table remains proudly displayed leaning against the wall in the apartment, as an esteemed piece of both art and utility.