1. Introduction

The advent of AI and the increasing accessibility of global talent are creating a paradigm shift in how middle-class Americans can achieve financial independence. This article explores how these forces are paving the way for many to live off their wealth, freeing them to focus on creative endeavors. Imagine life without a boss!

2. The Economic Impact of AI and Global Talent

AI is rapidly automating roles across various industries, from customer support to routine administrative tasks. Robotics will further this trend. Coupled with the low-cost talent from South Asia and Africa, who can handle human-in-the-loop roles for a fraction of what American workers charge, this trend is driving down costs and boosting efficiency across the board.

Distributing across global remote teams and automating as much as possible will also help with national security, our popularity as a country, our image, our carbon footprint, etc.

3. Labor Costs: South Asians, Africans, and AI

  • South Asian and African Talent: Hourly rates for skilled developers in South Asia and Africa can be as low as $5-$15, compared to $50-$100+ for U.S.-based professionals. Unskilled labor costs are <$1/hr in Africa and South Asia compared to $10-15+/hr in the US. Admitting more immigrants from very poor countries in Africa and South Asia would further drop the price of in-person services to what a true capitalist meritocracy with free trade would establish. Today’s economic disparity makes hiring international talent a cost-effective strategy.
  • AI: The cost of AI-driven solutions continues to drop, with AI’s “hourly rate” of <$1/hr becoming more affordable as technologies scale. Tasks that once required multiple employees can now be handled efficiently by AI at a fraction of the cost.

4. The Wealth Landscape in the U.S.

Recent data shows that nearly half of American households have a net worth of $200,000 or more, indicating a solid financial foundation for a large portion of the population. This shift means that a significant number of Americans could potentially live off their investments if cost-of-living expenses continue to decline significantly due to AI and globalization. Today it costs $75,000+ to run a family in the US but in the future, it might cost <$10,000 per year as the cost of living plummets.

5. Breaking Down Economic Borders

If we fully break down economic borders, daily goods and services will become more affordable. Without economic borders, food, clothing, shelter, etc. will drop down to the prices they are in India and Mexico, where it’s possible to live comfortably with <$10,000 per year. Leveraging global talent from rapidly growing economies like South Asia and Africa, which have growth rates between 5-8%, can drive down costs further. Investing in these markets can create a positive feedback loop, where American investments fuel faster growth of 10-20%, leading to higher returns for American investors, especially if automated services optimize American portfolios within the sectors of those emerging markets. To reduce stress, the US government can offer scalable insurance schemes to protect middle-class Americans and provide them UBI if their investment returns prove insufficient to live off of in any given year.

6. The Case for a Universal Basic Income (UBI)

For the remaining Americans with a net worth below $200,000, a universal basic income (UBI) could provide a safety net. Countries with much lower GDP per capita, such as France, Spain, Italy, Sweden, and the Netherlands, already have robust social safety nets and thrive. The U.S., with its vast wealth and resources, could easily remove bureaucratic government hurdles and allocate tax revenues to fund UBI without compromising its capitalist values.

7. Embrace and Value American Creativity and Innovation, not Rote Jobs

As AI and global talent take over low-paying, repetitive jobs, Americans will have more time to focus on creative endeavors, research, and innovation. The Calvinist work ethic, which once prioritized relentless productivity, will be replaced by a focus on purpose-driven activities, artistic pursuits, research, or entrepreneurship. In other words, we can do whatever we want! This may make America even more successful since wealth usually comes out of creativity and research rather than rote work. So, no, we’re not all going to become stoners, beach bums, and parrot heads. Rather, the most relaxed minds often get epiphanies, like Archimedes in his bathtub.

8. Conclusion

The future of the American middle class, upper-middle-class, and rich lies in embracing AI and globalization. By shifting repetitive tasks to AI and affordable global talent, we can reduce costs, increase efficiency, and create opportunities for financial freedom. For those who have not yet reached the $200,000 net worth threshold, a UBI can bridge the gap, ensuring that everyone benefits from the advances in technology and global collaboration.