jhuffman comments on Optimal Employment - Less Wrong

60 Post author: Louie 31 January 2011 12:50PM

You are viewing a comment permalink. View the original post to see all comments and the full post content.

Comments (267)

You are viewing a single comment's thread. Show more comments above.

Comment author: Louie 31 January 2011 09:44:16PM *  10 points [-]

Short explanation:

This is not me being misleading in how I present data. I'm presenting what happens by default in both options, not one optimized and one non-optimized option. What you discovered here is that, the plan to save money in the outback is robust and succeeds by default, while the plan to save money in the US is fragile and fails by default.

The longer explanation:

The Australian outback option isn't optimized. It's an off-the-shelf option that is heavily subsidized and in a bizarrely awesome economic climate... something I don't think many people here knew existed.

I think it's fair to compare a typical US job to a typical outback job because this is what you get when you don't put much effort into optimizing your budget in both cases.

The difference is that the outback is already incredible without you having to do anything.

It's actually pretty unfair to compare an outback working budget to the best-case US scenario where you spend tons of time in the US managing your money well to get the cheapest rent, best car prices, lowest food costs, and execute convoluted tax dodging strategies that most people couldn't figure out. It's a very tricky plan that requires lots of things to all go right, lots of time, lots of effort, lots of will-power, lots of knowledge, and lots of discipline.

On the other hand, my option only requires you to get whatever job you want in a remote area of Australia and get all your costs of living heavily subsidized and all your major cost centers nearly erased with no willpower, no planning, and no discipline required.

What you uncovered is not my "misleading" people, but the difference in robustness between the two plans. The Australian outback plan lets you save money by default with almost nowhere to go wrong while the plan that lets you save money in the US is a life-engulfing minefield of time-consuming bargin-hunting, self-denial, and tax evasion.

Comment author: jhuffman 31 January 2011 10:47:08PM 10 points [-]

Spending less than 37% on housing doesn't require

tons of time in the US managing your money well

It requires you make a correct decision once a year or so about renewing the lease. The reason people have little discretionary income is that they habitually commit themselves to spending plans such as five years of a car payment - but that spending plan itself is a choice.