Video Briefing

Nomad Capitalist: Will the US Become a Third World Country?

Jan 7, 2020Video Briefing4:20Watch on YouTube

The United States is facing growing criticism that its infrastructure and economic environment are deteriorating to the point where some observers label it “third‑world.” While the claim is provocative, several concrete observations help clarify the underlying issues and what they mean for residents and potential expatriates.

Infrastructure challenges

  • Road quality – Travelers returning from abroad have reported that many U.S. roads, especially in the Midwest, feel worse than those in cities such as Kyiv, Ukraine.
  • Airports – A number of regional airports suffer from aging facilities, limited capacity, and delayed modernization projects.
  • Public services – In many parts of the country, utilities, broadband, and public transportation are lagging behind comparable systems in other developed nations.

These deficiencies contribute to a perception that the U.S. is losing its “first‑world” status, even though the overall standard of living remains high for many Americans.

Economic pressures

  • Global middle‑class expansion – As emerging economies produce larger middle‑class populations, competition for talent and capital intensifies. This creates new opportunities for “digital nomads” and entrepreneurs who can work remotely.
  • Cost of living – In many U.S. metros, housing, healthcare, and education costs are rising faster than wages, prompting some residents to consider lower‑cost locations abroad.
  • Tax considerations – Certain jurisdictions offer lower personal income tax rates and more favorable corporate structures, which can be attractive to high‑earning individuals seeking to reduce their tax burden.

Immigration and talent mobility

  • Pro‑immigration stance for skilled individuals – Many policymakers and business leaders argue that attracting talented, wealthy immigrants can offset domestic skill shortages and stimulate economic growth.
  • Neighborhood dynamics – In some U.S. neighborhoods, rapid demographic changes due to immigration are cited as a factor in the “third‑world” narrative, though the impact varies widely by region.

Decision factors for relocation

If you are evaluating whether to stay in the United States or move abroad, consider the following criteria:

  • Infrastructure quality – Assess the reliability of roads, internet, and public services in your current and prospective locations.
  • Cost of living – Compare housing, healthcare, and everyday expenses against your income and savings.
  • Tax regime – Examine personal income tax rates, capital gains taxes, and any applicable expatriate tax rules.
  • Legal residency options – Research visa programs that cater to investors, entrepreneurs, or remote workers (e.g., digital‑nomad visas, golden‑visa schemes).
  • Diversification – A diversified portfolio of assets and income streams can mitigate risks associated with any single country’s economic downturn.

Practical advice

  • Diversify financially – Hold assets in multiple currencies and jurisdictions to protect against a potential devaluation of the U.S. dollar.
  • Plan for mobility – Keep documentation (passports, visas, tax filings) up to date to enable swift relocation if needed.
  • Monitor infrastructure projects – Follow federal and state initiatives on transportation and broadband upgrades to gauge long‑term improvements.
  • Evaluate quality of life – Beyond economics, consider health care, safety, education, and cultural fit when choosing a new home.

While the United States still offers many advantages, the combination of aging infrastructure, rising living costs, and global competition has led some to view it as increasingly comparable to developing economies. Individuals concerned about these trends can mitigate risk by diversifying assets, staying informed about infrastructure developments, and exploring relocation options that align with their personal and financial goals.