Video Briefing

Nomad Capitalist: Living in the US is WORSE than Ever

Jul 11, 2024Video Briefing12:11Watch on YouTube

Living costs in the United States have surged, leaving many workers—particularly low‑paid airline crew—struggling to afford basic housing.

Inflation and Housing Pressure

  • Consumer prices have risen sharply across the country, with major metropolitan areas seeing the steepest rent increases.
  • The combination of higher rents and stagnant wages has pushed some workers into extreme measures, such as sleeping in their cars.

Flight‑Attendant Compensation Crisis

  • Base pay: American Airlines reports entry‑level flight attendants earn roughly $27,000 per year.
  • Geographic constraints: Most crew members are based at high‑cost hubs—Miami, Chicago, New York (JFK), and Los Angeles (LAX)—making affordable housing scarce.
  • Union negotiations: The flight‑attendant union has demanded a 177 % wage increase, which would raise annual earnings to about $32,000. Even at that level, many would still qualify for food‑stamp assistance in states such as Massachusetts and Florida.
  • Living conditions: Reports indicate a number of flight attendants are forced to live in their vehicles to cover the gap between income and housing costs.
  • Potential strike: Union representatives have warned of a possible work stoppage if the proposed raise is not accepted.

Broader Economic Context

  • Analysts cite corporate pricing strategies, government fiscal policies, and a slowdown in immigration as contributing factors to the current affordability squeeze.
  • A separate report (cited from a Canadian source) warned of rising civil unrest in Canada over the next five years, reflecting broader North‑American social tension.

Remote‑Work and Relocation Options

For workers whose wages do not keep pace with local costs, some firms are offering remote positions that allow employees to live abroad while remaining on a U.S. payroll. Key points of such arrangements include:

  • Foreign‑earned income exclusion: U.S. citizens employed by foreign entities can exclude a portion of foreign‑earned income from U.S. taxation, potentially reducing tax liability.
  • Cost‑of‑living differentials: Relocating to countries with lower living expenses—e.g., Mexico, Argentina, Colombia, or Malaysia—can stretch a $32,000 salary significantly further.
  • Visa and residency support: Some employers provide assistance with obtaining residence permits or work visas in the chosen destination.
  • Skill alignment: Airline crew members often possess logistical, cross‑cultural, and regulatory knowledge that can be valuable in roles such as “case officer” for firms assisting clients with tax planning, citizenship, and relocation.

Considerations Before Relocating

  • Tax implications: While the foreign‑earned income exclusion can lower U.S. tax obligations, individuals must still file U.S. tax returns and meet reporting requirements (e.g., FBAR, FATCA).
  • Healthcare: Access to affordable health coverage varies widely; expatriates may need private insurance or rely on host‑country systems.
  • Legal residency: Securing a long‑term visa or residency permit often requires proof of income, health insurance, and sometimes a local sponsor.
  • Cultural adaptation: Moving to a new country entails language barriers, differing labor laws, and varying standards of living that can affect quality of life.

Bottom Line

Rising U.S. housing costs and low wages for essential workers such as flight attendants are prompting both labor actions and exploration of overseas employment. Remote‑work opportunities that leverage foreign‑earned income exclusions can make relocation financially viable, but prospective movers must carefully assess tax, legal, and personal factors before making the transition.