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HomeMy WebLinkAboutThe Citizen, 1993-05-26, Page 5THE CITIZEN, WEDNESDAY, MAY 26, 1993. PAGE 5. Marketing Waco, not an easy sell I know, I know ... it's been a lousy day. A lousy week in fact. Your car's developed a death rattle, the kid next door's just bought a boom box radio, your income tax refund still hasn't come back and this morning the cat threw up in your shoe. You think life had dealt you a bum hand of cards, right? Well, cheer up. Just think of who you might have been. Dan Quayle's PR man. Mike Tyson's sparring partner. Kim Campbell's astrologer. Or worse. You could have been Elizabeth Taylor. Naw, not THAT Elizabeth Taylor. I daresay old Blue-Eyes-of-the-multiple- hu. sbands has her own set of problems, but that's not the Liz Taylor I'm talking about. I mean Elizabeth A. Taylor, the blonde, bespectacled, middle-aged and matronly Director of the Conventions and Visitors Bureau for — wait for it now — here comes the hard part ... Big Mac, an economic indicator? A couple of years ago I wrote about the use of McDonald's hamburgers as an indication of what is called Purchasing Power Parity in the world of international currencies. In case you have forgotten, or (heaven forbid) didn't read the article, let me bring you up to date on the latest findings. First a bit of background. Economists consider the exchange rate of a currency to be the correct one if you take a specific amount of currency, change it into another currency at the going rate and the amount of money you will receive will buy the same amount of goods in the foreign country as the original amount of money did in the original country. Let me use a precise example to illustrate this. Make a list of things that you want to buy in Canada that will add up to $1,000. Let us assume that the going rate of the Canadian dollar in terms of U.S. dollars is 80 cents. Thus you will get $800 U.S. dollars if you were to exchange the $1,000 Canadian into U.S. currency. If the exchange rate is correct, the $800 U.S. will buy the same amount of goods south of the border as the $1,000 did here. This is what is known as Purchasing Power Parity. Since nobody, not even economists, wants to go around buying so many goods just to find out how valid the exchange rate is, the question arises as to how one might find a simpler way. To our delight, there is, in the form of a McDonald's Big Mac. You may think that I am kidding but I am not. While the well known hamburger does not do the job with mathematical precision, it is amazingly accurate. By that I mean that it does as good a job as establishing the PPP of currencies as far more sophisticated For the city of Waco. Yes, Waco, Texas. Also known as Whacko, Texas. Site of the disastrous confrontation between a compound of religious fanatics and an assault force of authority zealots. David Koresh and his pathetic band of loonies first traded bullets with federal agents, you may recall on Feb. 27. That was exactly one day after Elizabeth A. Taylor arrived in Waco to take over as the new city officer in charge of marketing Waco as a pleasant, peaceful and desirable destination for tourists and conventioneers. It has not been what your marketeers would call 'an easy sell'. It should have been. Waco is — or was — a cheery, accommodating moderate-sized city of 100,000 before the Branch Davidians and the FBI squared off. It's a city that's full of parks. The Los Brazos river undulates lazily through its core. There are 14 museums to visit in Waco — everything from the Texas Rangers Museum to The Home of Dr. Pepper. "Visitors can have a free Dr. Pepper float at the soda fountain" Elizabeth A. Taylor chirps hopefully. Alas, for the past few months the only takers have been off-duty FBI agents and police snipers. It's not fair, what happened to Waco and to Elizabeth A. Taylor. Especially not fair when you consider that the famous Waco Raymond Canon methods. Well, what has the Big Mac come up with this year? For one thing, it is dead on with two countries, Mexico and Ireland. What this means is that, if you take U.S. dollars and exchange them for Mexican pesos or the Irish punt, the PPP is no less than 100 per cent. A very close second is the Canadian dollar which is a mere four percent undervalued. This has a further benefit for Canadian readers in that it means that the relationship between the U.S. dollar and a host of other currencies is, by and large, the same relationship between the Canadian dollar and the same currencies. Without being aware of it, you probably have a rough idea of the PPP if you have ever travelled to another country. Let me explain. Have you ever gone to a country and found that the prices there were very expensive by your standards? If so, it is highly likely that that country's currency was overvalued in terms of Canadian dollars. If the prices seemed to you to be very cheap, then the currency was undervalued. With all that in mind, what does the Big Mac tell us this year? The two most expensive countries for us in Europe would be Denmark or Switzerland. Their currencies are about 75 per cent overvalued. This does not cheer me up one bit since, by the time you read this, I shall be working in Switzerland for a month and likely complaining about all the high prices. France is only slightly better at 50 per cent overvalued followed by Italy at 30 per cent and Germany at 25 per cent. In short, this is going to be a very expensive month for me in 1993. All right; I know what you are asking. Is there a cheap country in Europe? How about Hungary and Russia? The Hungarian currency is 22 per cent undervalued while the Russian ruble is no less than 50 per cent under what it should be. If you eat at the McDonald's in Moscow (which is run by the Canadian branch of the company), you will •Massacre didn't even happen in Waco. The Branch Davidian compound is outside the city limits, in an unincorporated section of McLennan County. Needless to say, reporters and TV anchormen don't let such geographical niceties get in the way of a hot story. It will be known in the history books and around the world forever as The Waco Massacre of 1993. The intense media coverage has already turned Elizabeth A. Taylor's dream job into an nightmare. Nobody rings up to book convention hotel rooms in Waco these days. Most of the phone calls she gets are from nervous tourists about whether it's safe to visit Waco — this in spite of the fact that the standoff is over and happened miles from downtown anyway. Still, Elizabeth A. Taylor remains pluckily upbeat. "I think we're really trying to say, 'Okay, Waco's bigger than this. Waco can come out ahead of this ... We have a real opportunity to turn some lemons into lemonade and really tell people about Waco's story.'" Well, I suppose if anybody can pull if off, it'll be a cockeyed optimist like Elizabeth A. Taylor. Besides, we should, as Elizabeth A., herself would say, Look on the bright side. Unlike the other Liz Taylor, at least she doesn't have to worry about what her loony pal Michael Jackson is up to. be getting the cheapest Big Mac anywhere. Australia, Hong Kong and Thailand are other cheap countries but they are rather far away. At least you know that Mexico and the U.S. are not going to knock a big hole in your pocket book. I should point out that the PPP takes a considerable time to adjust so that, if the country you are planning to visit this year has an overvalued currency, don't expect it to adjust overnight. If it is a little better by the time you get there, all well and good but it is very much a case of caveat emptor or buyer beware. Even if you do end up paying about $4 for a Big Mac in Switzerland or $3 in Germany, it is still a relatively cheap meal. Blyth mothers visit The Ark Continued from page 4 happened since last week. Mary and Leanne, Linda and Nathan, Mary Lou and Margie, Adele and Nikki, and Kim all made a tour of The Ark in Brussels on Thursday evening. First of all, a special thank you to Sallianne Patch for making this possible. Sallianne gave us lots of necessary information on forming a teen home. We mothers really learned a lot and there is a lot of work involved. It's not possible to have this teen home on its feet by this summer as I had hoped. There are several steps necessary to ensure we have a well run facility. We hope to organize a bus trip for some teenagers to visit The Ark this summer. The Ark is a recreation facility for teens 12-20 years old. There is a real "homey" atmosphere. There are pool tables, tennis tables, dart boards, table hockey, a stereo and juke box. It's really neat! I am sure our teens would really appreciate the atmosphere. Mary and Leanne Bell. The short of it By Bonnie Gropp Facing the music Sometimes the idea for a column sort of comes up and punches you. Whether it crossed my desk or my path the topic of raising teens kept taking little jabs at my subconscious this week. One of the most difficult things I find about being a parent is letting my children be responsible for their actions, helping them understand that the choices they make will affect the course their lives may take. Should children go astray it's equally difficult for parents not to lay the blame on themselves. Many times our judgement is clouded by guilt or by love to the point where we end up protecting them instead from the consequences of their actions. I recently read a book, albeit fiction, but one not too hard to perceive as a reality. A young man wanted for questioning in the murder of his girlfriend has disappeared. While at first his parents fear he may have been abducted the father is soon confronted with the evidence of his heinous crime when he finds the murder weapon in the trunk of his son's car. Rather than turning it over to the police, his father chooses instead to hide the incriminating item and dismantle the carpetting and anything else in the car to rid it of any remaining hidden testament to his son's gory deed. While I could certainly sympathize with the parental desire to protect a child, I know it's wrong. Unfortunately, tough love is not always as easy for loving parents to practise as it is in theory. A recent speaker at an area high school, Norbert Georget, offered parents advice on coping with teens. His major thrust was that kids, not parents, are responsible for the choices they make and as such must face the consequences. (What a refreshing change it was to hear an expert, actually remove the burden of guilt from the parents!) In presenting the consequences, however, parents must be consistent, he said. "You say it, you mean it, you do it." Last week, while covering court, I saw an example of tough love. A youth had stolen two cheques from his parent and forged the signature on them. The total was not a big deal but you sensed through the discussions taking place that everything else had been done that could be done to set this teen on the right track. Even though the amount had been paid back, the parents let the charges stand. The judge was told that the son was welcome to return home but their wish was that he be ordered to receive counselling as a term of probation. Sitting beside this couple I had a strong urge to tell them how much I admired the courage it must have taken for them to follow through on what would have been the normal consequences of their son's actions had he picked anyone else as victim. My husband and I have been fortunate, thus far. Our eldest two are relatively well- adjusted young adults, who have caused us little concern. But, with two more still to see through the teens, we can't rest yet. I think many will agree there is an aggression in today's kids that I don't believe existed as strongly in the previous bunch. It's a different world confronting them with many outside pressures facing them so parents need to be a strong influence. Personally, it's an area I can improve on. I tend to be a little wishy-washy, a mistake parents can't afford to make too often. Facing the music can often be a discordant experience which for loving parents is not easy to watch. However, it might be the most loving gesture we can make. Arthur Black nternational Scene