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Im not not sure what point #1 means. They own a house in a HCOL area - the very definition of being upper class and privileged! A billionaire might “feel” the

by refurb 4y ago

Im not not sure what point #1 means. They own a house in a HCOL area - the very definition of being upper class and privileged! A billionaire might “feel” the cost of his private jet fleet but that doesn’t mean he’s not rich.

acdha 4y ago
It means that their income is linked to unavoidably higher burn rate, making it seem like their life is more elite than it actually is. For example, how nice is a $1M house in Silicon Valley compared to a $1M house in Podunk? The latter is a rich person’s lifestyle choice, the former is wanting to have room for kids and less than an hour commute. Unlike that hypothetical private jet, these are not optional expenses if the job doesn’t allow 100% remote – you need somewhere to live, if you aren’t wealthy but still want kids you need childcare until they go to school, etc. And, again, I’m not saying that this is a pity-worthy situation – only that it’s a lot closer to the average worker than the average rich person in terms of having to go to work every day, think about finances, etc.
- refurb 4y ago
  But it doesn’t work that way. The expense is the location itself not the house. Your average middle class American could never afford to own anything in a HCOL city. That’s the privilege.
  - roenxi 4y ago
    Another argument you might appreciate - there is some practical limit to the number of people who can live in a HCOL area (from the available housing stock). Say that is N people. The market will organise itself so that the price is just high enough that person N+1 can't afford to live there. Of course a lot of the people who live in a HCOL of living area feel like they can only just afford to live there. If they thought it was cheap, more of their class would move there - it is a desirable area. You have to be so rich that everyone in your wealth/income class can afford to live in an area before housing costs will be low enough to ignore. So the top 100 billionaires don't feel the housing costs of living in a HCOL area because all the billionaires in the world could probably move there and not fill up the available housing stock. But if all the millionaires in the world want to move somewhere then the price will be high enough that a millionaire feels like they can't afford to be in the area. And that is really just a subtle market hint that a lot of millionaires think it is a nice area. Doesn't make the people involved less rich.
    - refurb 4y ago
      That's pretty much it. It doesn't matter the wealth or income someone has, there is always something they can't afford. So clearly the existence of "limited resources" is not a good indication of whether someone is wealthy or not. But ignoring the type of house and it's location - if someone can afford the down payment and mortgage payments on a $2M homes (typical single family home in the Bay Area), the are objectively very well off.

by refurb 4y ago

acdha 4y ago

It means that their income is linked to unavoidably higher burn rate, making it seem like their life is more elite than it actually is. For example, how nice is a $1M house in Silicon Valley compared to a $1M house in Podunk? The latter is a rich person’s lifestyle choice, the former is wanting to have room for kids and less than an hour commute. Unlike that hypothetical private jet, these are not optional expenses if the job doesn’t allow 100% remote – you need somewhere to live, if you aren’t wealthy but still want kids you need childcare until they go to school, etc. And, again, I’m not saying that this is a pity-worthy situation – only that it’s a lot closer to the average worker than the average rich person in terms of having to go to work every day, think about finances, etc.

refurb 4y ago
But it doesn’t work that way. The expense is the location itself not the house. Your average middle class American could never afford to own anything in a HCOL city. That’s the privilege.
- roenxi 4y ago
  Another argument you might appreciate - there is some practical limit to the number of people who can live in a HCOL area (from the available housing stock). Say that is N people. The market will organise itself so that the price is just high enough that person N+1 can't afford to live there. Of course a lot of the people who live in a HCOL of living area feel like they can only just afford to live there. If they thought it was cheap, more of their class would move there - it is a desirable area. You have to be so rich that everyone in your wealth/income class can afford to live in an area before housing costs will be low enough to ignore. So the top 100 billionaires don't feel the housing costs of living in a HCOL area because all the billionaires in the world could probably move there and not fill up the available housing stock. But if all the millionaires in the world want to move somewhere then the price will be high enough that a millionaire feels like they can't afford to be in the area. And that is really just a subtle market hint that a lot of millionaires think it is a nice area. Doesn't make the people involved less rich.
  - refurb 4y ago
    That's pretty much it. It doesn't matter the wealth or income someone has, there is always something they can't afford. So clearly the existence of "limited resources" is not a good indication of whether someone is wealthy or not. But ignoring the type of house and it's location - if someone can afford the down payment and mortgage payments on a $2M homes (typical single family home in the Bay Area), the are objectively very well off.