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.

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 PPP	1.12
Actual Exchange Rate	0.92
Margin of Error	21.74%

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.

5 Minutes or less: Likes and Dislikes

Note: I started this list a few weeks ago but never actually published it... better late than never, I guess...

A quick and dirty list of likes and dislikes of Melbourne thus far (in no particular order):

Likes:

1. Variety and quality of restaurants.  Italian, Vietnamese, Chinese, Japense, Korean, Indonesian, Greek, Vegan, etc, they're all available and all are authentic (except for maybe Mexican...)
2. Proximity to mountains, ocean, and forests, all accessible via public transportation
3. Public transportation.  We can pretty much get to anywhere we want to go in greater Melbourne via tram, metro, or bus
4. The people.  Aussies are in general incredibly easy going and friendly, not to mention non-Aussies
5. The weather.  The day can start grey, wet, and gross and end sunny, warm, and bright
6. Melbourne is distinctly Australian, and as Americans we're "special" (in both senses of the word).
7. Aussie Rules Football.  Still figuring out the rules, but its definitely entertaining and everyone has an opinion about which team to barrack for.  In general, Collingwood fans are bogans.
8. City planning.  Upon first arriving in Melbourne, it is quite obvious that a lot of thought was put into the planning of Melbourne.  The streets are in a grid pattern, the trams run down every other major street, and the CBD is quite manageable and walkable
9. Regional pride.  Similar as in the US, but perhaps more widespread, Aussies are very proud of their respective cities and have little reservation in asserting that their city is the best
10. Animals.  Aussie animals include some of the most exotic and interesting animals on the planet.  We don't have an opportunity to see a ton of animals given that we're in cooler Melbourne, and we're in the city, but when we do see them, they're pretty awesome.  Although many locals consider them a nuisance, the possums are ADORABLE

Dislikes:

1. Absence of abundant and good mexican food.  Trippy Taco is the best so far, which is nice since its a 5 minute walk from our apartment up in Collingwood.  Other than that, Taco Bill can satiate an appetite if in dire need...
2. Public transporation.  While the public transportation is amazing, it is nonetheless public transportation.  Waiting for a bus/tram/train sucks, compounded with the fact that there exists no easy way to determine where tram routes go, and the routes aren't outlined on Google Maps like in NYC or London, getting around can prove difficult
3. The weather.  As mentioned above under "Likes," although the weather can start out cold, wet, and ugly and transition to warm, sunny, and pretty, the inverse is true as well... We'll see as summer approaches, but leaving the apartment this time of year without rain protection and a spare layer of warmth is a risky endeavor
4. The cost of EVERYTHING.  Nothing is comparatively cheap here... well except for wine.  Some standard price indicies:
1. Half-gallon of milk: $4.50
2. 24-case of mediocre beer: $45
3. Can of Coke: $2.00
5. Notable lack of robust and diverse microbrews (nitpicky I know, but I'd kill for a Terrapin Rye right now...)
6. Time difference between Melbourne and the States.  It's just part of moving so geographically distant from your home town, but it has proven a bit of nuiscance in a number of key areas; calling friends and family, watching sports, and catching up on news.  Lydia and I agree that the time difference is more significant of a factor than the geographical distance.

That's the quick list, I'm sure I'm omitting many others from both categories, but I've hit my "5 minute" mark.  In an effort to post more on the blog, I'm going to try to include more "5 Minute or less" posts

Things etc Part I

Apart from the obvious (family, friends, pets, home, places of notable significance in my life), I know that I will miss a a few key material things and some key "American" things.  I like to consider myself a relatively non-materialistic person, but nonetheless there are a handful of things that I am lamenting having to leave behind once I leave the States.  So in no particular order and by no means comprehensive:

1. Taco Bell- Yes, this is the first item on my list, and yes, I am kind of ashamed.  Nonetheless, Taco Bell and its quality 83% beef products hold a special place in my heart. When I was applying/searching for universities, it was actually a consideration that a Taco Bell was within a reasonable distance.  When living in Athens, I on occasion would walk the dodgy two miles from downtown to Taco Bell and back to my house (yes, alcohol was involved). While I don't enjoy this delectable cuisine regularly (if I did, I likely wouldn't be here to author this post today), it is definitely a favorite that will be sorely missed.  Coincidentally, another Yum! brand is found throughout Australia, albeit a less appealing one: KFC
2. My Car- Don't get me wrong, I am very excited not to have to worry about all the hassles of owning a car; gas, maintenance, parking, traffic, insurance etc.  But for all the costs there are a number of compelling benefits. I know I will miss the freedom and convenience of being able to jump into my car and drive directly where I want to go.  After traveling for two years for work, often utilizing public transportation or even just flights, it's amazing how much longer it takes to get to where one is going when it is not direct, even when taking into consideration traffic.  Factor in the convenience of having a vehicle to carry other people, things too big to carry, and to get to places otherwise unreachable, and the idea of not having a car becomes a bit less appealing.
3. The letter Z- I rather like the letter Z; it's exotic, it holds an important place in our alphabet, and it looks cool.  Which leads me to lament the fact that the Aussies (and to a lesser extent, the Brits) either detest the letter, or fear it outright.  I no longer "organize" my sock drawer, I "organise" it.  I'm realising and recognising how odd it is going to be to relearn how to spell those words.  Now can you tell me, where might I find a soo? (jk, it's still called a zoo).
4. Beer!- So this one really should be at the top of the list, if I were trying to organise (see what I did there) it in order of importance.  I should note that this one is still up in the air, as there could very well be a microbrew scene in Austalia of which I am unaware, but I am almost certain that should one exist, it will likely not come close to rivaling the US.  All I can recall when I was in Oz in 2007 are otherwise unremarkable carbonated beverages that vaguely resemble beer.  Toohey's New, Victoria Bitter, XXXX, they were all primarily light, over-carbonated lagers, akin to our Bud Light, Miller Light, and Coors. Coopers is really the only brewery I found that offered up some variety, but their pale ale was sadly disappointing.  I have grown to appreciate the variety and quality of microbrews available here in the States, and there a few beers in particular that I will miss dearly: Terrapin Rye, Dogfish Head Aprihop and 90 Minute, Sierra Nevada Pale Ale and Torpedo, Allagash White, and Great Divide Old Ruffian. Contrary to popular belief, most Aussies do not drink Fosters; in fact they are adamantly opposed to the notion, as they consider it crap beer. Ironically, it appears that Fosters brews or licenses the vast majority of the beer in Australia.  I am sure this will not be the last post mentioning beer...
5. Electronics, clothes, shoes, things in general for a reasonable price- So not having moved to Australia yet, I can only base this on from what I've heard from others and read online.  Shit is expensive.  Really expensive.  In general, it looks like Melbourne is 42% more expensive than Atlanta.  A standard pair of running shoes runs about $70 here... in Australia, $130.  Not only are their prices higher nominally, we're also facing a weak US dollar, which will only compound the expense, at least before I have saved up a substantial amount in AUD.  I will take this as an opportunity to hone my understanding of international trade and finance, although ultimately it's not going to save me a shilling.

As noted above, this is by no means a comprehensive list and I am sure once we are down there and settled, I will supplement this list.