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Tran Hung Dao's avatar

As someone who is 1%er in a developing country (well, probably more like 0.1%) and is moving to a developed country in 84 days I can't help but chime in on David_in_Chicago's question and Matt's response.

The tl;dr is that 99% of people would (and should) choose the median lifestyle in a developed country over being 1% in a developing country. Because money can't fix everything and even for the things it does it often takes being far richer than "just" 1% to begin doing so.

First a pedantic note: developing countries are massively heterogeneous. Remember that in 1995 South Korea was still a "developing country". Taiwan still is. But South Korea circa 1995 and Taiwan today are very different than, say, Vietnam. And Vietnam is different from Rwanda in ways both economic, social, and cultural. And the same for developed countries though to a lesser extent. Is being a 1%er in Taiwan better than being median in Italy? Probably, maybe? Taiwan is really nice! Is being 1%er in North Korea better than being media in Switzerland? Come on, no.

Matt alludes to the things money can't buy but only scratches the surface. I mean, don't forget that you'll have a low-power passport and can't get a visa to go visit Japan even though you're rich. (Not a theoretical example, I know several USD-millionaires here who have had Japanese visas rejected.)

Depending which developing country that could include crime, pollution, bribery, traffic far worse than anything in America.

In general state capacity is low. That means police and fire departments take longer to show up, even for serious crimes. Building codes aren't as developed, so your house won't have smoke detectors or grounded electrical sockets. The legal system is less developed, so land lords, neighbors, and employers are more likely to rip you off. No such thing as noise complaints when your neighbor's dog barks 24/7: the only solution is to kill it.

Luckily you won't get in any real trouble for killing their dog because there are effectively no animal cruelty laws yet.

More likely for you or your children to get killed by a truck driver on meth or a drunk driver because the laws and norms around those things are less developed.

It also means things like repaving streets happens less often. That there is no money for parks in the city. No money for national parks. No money to run anti-littering campaigns. No money to enforce "don't burn trash to avoid having to pay for rubbish collection" rules. It means the equivalent of the FDA is much less capable so the news sometimes has stories about how a coffee factory was found to be putting ground up batteries in the product to cut costs.

I could go on at length and I doubt many from developed countries would even be able to imagine many of the things. Our neighbor didn't have their trash collected for an extended period because the trash collectors demanded an extra bribe and the landlord of the house refused to pay it.

If you live in a developed country 10,000 paper-cuts like this simply don't exist.

There are also a whole lot of things that money can fix but you need to be richer than 1% to fix it. In my country, 1% means you have a networth of $800,000 USD. Sending your kid to a good private school here costs $60,000 a year. Even a 1%er can't afford it.

I know very rich people who only eat fruit, fish, meat, noodles, coffee, etc imported from Japan because of their low trust in local food safety. But doing that costs more than 1%er amounts of money.

And not sending your kid to a private school brings a host of issues. One of which is that it is simply harder to get into the best foreign university because many of them don't accept local schools as an entry requirement. There's a reason why even very rich families here end up often sending their kids to very mediocre schools in America and Australia.

And you will be sending them. Because even if you are a 1er here you know that all the universities suck. And you know that unless your plan is for them to take over a family business, they need to build a career and a life in a developed country. And you also know that after years of schooling in a developed country, they're going to have limited interest in living in a developing country.

At the end of the day this is where the question really ends: with our kids. Even rich people in developing countries rarely want their kids to grow up in them.

Just as one example from thousands: if you have daughters do you want them growing up in a country where norms around domestic violence are very different (worse) than in developed countries?

It is the reason we are moving shortly. If we didn't have kids, the calculation would be different. Yes, having maids is great. But I want more for my kids and having maids isn't the most important thing as a parent. The opportunities elsewhere are simply too great.

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John from FL's avatar

Matt writes: "Narrowly, no. HUD Secretary does not seem like a fun job to me, and I don’t want the pay cut. If I were to hold some kind of public office, I think a local gig would be more fun because it pairs well with first-party content creation."

I yearn for the day when government service becomes a real job. "Service" implies sacrifice, whereas a "job" implies an important task to accomplish by a capable person. HUD Secretary oversees and directs over $70B of discretionary spending, according to guidelines from Congress. Overseeing $70B of spending is a big job and requires someone who is competent and effective in that job. And that person is going to command more than the $246,400 that the current Secretary makes in any other private endeavor.

For comparison, the COO of Proctor & Gamble -- a company with ~$60B in spending -- made $8M in salary & stock last year. Now, I don't think the jobs are exactly equivalent, nor should the government pay $8M for the HUD secretary. But the job should pay more than 3% of what the COO of a consumer products company makes.

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