The Silicon Valley paradox: one in four people are at risk of hunger

The root of Silicon Valley's successes and its problems are the same thing, and they both stem from how markets operate. New technologies in automation allow companies to successfully compete with incumbents but use drastically less manpower. (This, BTW, is why large swathes of America have seen mass unemployment and stagnant wages for a generation; you may not feel it in Lincoln, but the folks in Detroit/Ohio/West Virginia certainly do.) Markets price based on your best alternative, so if you invent a technology that does the same work as 10,000 people and price it accordingly, you can redirect the wages of those 10,000 people into your company's profits, and if you do that with 100 employees, you can all become pretty filthy rich.

All that money flowing into the Bay Area drives up prices, because there's a fixed amount of land (and some pretty fucked-up NIMBYist policies). The cost of living is an effect of the region's prosperity, not a cause, and not an independent variable. If you are a rainmaker for one of the companies - sales, or a key engineer or manager, or best of all, the owner of the company - then you're doing just fine; your salary goes up faster than rents & housing prices. But if you have to compete with all the other unskilled people in the area for an unskilled position, your salary is capped by what they are willing to work for; remember, in a market economy, you can price based on whatever the best alternative is, and there are a lot of good alternatives for chefs, housecleaners, and security guards.

The market allocates the small available amount of housing to the people who are willing to pay the most, which means that the folks who are not indispensable to this large-scale transfer of wealth from the rest of the world to Silicon Valley get priced out and either have to double up, move to Clear Lake or Stockton, or live on the streets. Most people from other parts of America are not willing to do this, so they move back home. However, these living conditions are typically an improvement on what you'd get in much of Southeast Asia or Mexico, so you see these unskilled jobs taken by them. (Many of the Indian & Chinese immigrants are actually very intelligent & highly skilled - U.S. immigration policy makes it very difficult to move from there if you're not. But when it comes to crowding & quality of life, the Bay Area is a literal breath of fresh air compared to China.)

The interest in UBI among Silicon Valley's cognoscenti is because they're looking ahead to what happens when the technology wave reaches the rest of America, and all the dentists, insurance providers, accountants, and other mid-level white collar workers have had their jobs automated away. What do you do with the people left behind? What do you do with the engineers once they've written all the software to automate our daily lives?

Most of Silicon Valley is actually fairly free-market libertarian, but because they're so exposed to the market and have first-hand experience with how it's changing, a certain segment here is thinking very actively about what the end-game looks like.

Of course, you may still want to have a private healthcare insurance to have quick access to care. The public system in Nordics is great for preventive care for children, and emergencies and serious situations for everyone, but not so great for everyday items. Larger employers often provide a private health care plan so that employees don't have to spend hours in queues.

A train or bus from the Bay Area to Nebraska will run around $100. That’s around the same amount as Bay Area rent costs for just the time spent on the train/bus during the trip.

> How do you find a job?

To start, “Help Wanted” signs and odd jobs in the usual places (e.g. Home Depot). Then, network or use free internet at public libraries to search for something better.

> Are there really many jobs for burger flippers?

There are fewer jobs, but also fewer people attempting to get them.

> Are people who flip burgers in Nebraska so much better?

Of course not. But they live in a place where population has held steady (graying) instead of growing wildly, where there’s plenty of land, and plenty of housing stock on that land, so housing takes 25% of the burger flipping paycheck instead of 75% (don’t forget commuting time in the cost of housing). As a result, their standard of living is higher.

The Bay Area, or any high cost area for that matter, is a great place in which to save 20% of one’s income and a terrible one in which to live paycheck-to-paycheck 0%.

https://money.stackexchange.com/questions/6341/whats-the-ave...

Also, it is just not a good idea to borrow $15,000 on multiple credit cards at high interest rates when there is no guarantee that you will earn sufficient income to pay that money back in your new location.

It's easy to give out this kind of trash advice to other rich(ish) people on the internet. I wonder if you'd dare tell someone who was actually in the kind of situation you're describing that they ought to incur $15,000 in credit card debt and move to the middle of nowhere.