I had lunch with my colleague (also famous blogger) Tyler Cowen today at a new Indian place in Fairfax. Our conversation drifted all over the map –from the economic crisis to health care to what higher education might actually look like 10-15 years from now.
We also talked about what other countries might be reasonable to live in for academic types such as ourselves if, as seems perhaps less likely now, economic Armageddon ensues. Tyler liked both Mexico and Thailand (the assumptions here are perhaps $40K/year–not the $10M that Tyler was talking about a while ago in his blog–i.e. reality). I mentioned the Netherlands because of their superb and stable social welfare system, but Tyler was quick to disabuse me of that idea–if the US goes, Western Europe will most assuredly go also. Forget “decoupling”.
But, if you consider decoupling, well then Brazil begins to look pretty good according to Tyler (and I agree with him). They make all their own food. They are essentially energy independent, and they don’t do a lot of trade with either the U.S. or China. So they would probably be able to continue, although they would be much poorer.
Well, in that case, I’d definitely chose Sao Paolo, the Los Angeles of Brazil. The only problem with that pointed out Tyler, is that the housing costs would pretty much be the same as here in DC–not really possible on $40K a year.
So I ask you, dear reader–what country would you chose, in case the U.S. goes broke?
Jim