Captain Capitalism (Aaron Clarey) sent me a copy of his new book Enjoy the Decline and I’ve spent the day reading it. It’s an entertaining read, to say the least, and it has me wondering about some of the strategies that Clarey brings up and if they are worth implementing.
He discusses how the relationship between the state and its citizenry has become parasitic; one chart he mentions shows a full 70% of government spending going to income transfers. “These income transfers are parasitic in nature in that they benefit a specific group of people instead of investments, infrastructure, roads, defense, and other public goods which benefit everyone.” Clarey asks, “..how do you as an individual adapt or change your behavior when your relationship with the state changes from a symbiotic one to that of a parasitical one?”
So what do you do? You can kill the parasite, not really an option. Another option is to leave the country but not everyone can pack up and go and finally, the third option and the one Clarey discusses most as he feels it is the most optimal is minimalism. “While there is no official definition, minimalism is essentially shrinking your economic production to its absolute minimum.”
So Clarey says that the idea is to work “VERY LITTLE” and still get by. He states, “If you have no major financial obligations (children, mortgage, etc.) the average person can easily get by on $15,000 per year. This amount can be earned quite easily by either working full time at some menial job, or part time as independent contractor with some semblance of a skill.”
I do have financial obligations and it would be hard to live on $15,000 a year. Could you do it? If so, how? Would it be worth it to “Go Galt?”
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Do a little business under the table, go cash whenever possible. Barter some goods and especially services. BTW, if you stay under $30,000 with children, you can start to claim a bunch of those transfer payments for yourself. You can definitely drop your income 25% that way.
Me, I left the country, leaving behind my $180,000 a year job with up to 30% bonuses. When I hit top tax rate plus top state tax rate plus Alternative Minimum Tax (because I have more than 4 children) plus plus plus, well it just wasn’t worth it.
Now the U.S. sends me a check for $5,000 every year (per child tax credit with taxable income offset by foreign taxes – leaving me with no taxable income).
I used to feel bad about it. Now I figure I’m sick of being the sucker.
A lot of it depends on housing expenses and transportation issues. Can you find decent housing (or be willing to share it) for a very low rental rate? Is there a bus that goes by the grocery store or library, or can you walk it? Will you still be willing to do so in inclement weather conditions? Next up (or for some people, first up) are health considerations– if you have ongoing health expenses which are beyond your ability to pay out of pocket, then you will want either a job with benefits (and hence not be “minimal”) or at the very least, a source of income that will cover your ongoing care. I watched a family member go through this, and yes, it takes a village (or family) to support a cancer patient. However, most of us can make substantial changes to get by with less. Maybe we won’t get properly minimal, but we can at least build our own support system(s) while we wean ourselves from the established ones.
If we paid off the remaining balance on our mortgage (which we could easily do) that would save roughly 13k per year in expenses. Our health insurance premium for 2 people is 1,680 per month and necessary due to pre-existing conditions. In short, 15k would not be enough for us to live on, although we have no debt and our food, utilities, and other ordinary expenses are very low.
We are retired and have reduced our draw downs quite a bit so we are essentially living the recommended lifestyle, but the specific income amount suggested isn’t high enough to cover our expenses.
Sure I could live on $15k a year. I just get a spouse who makes a lot more and leech off that income. Lots of housewives live on $0 a year and drive a Mercedes.
Carey’s single apparently, and childless. Also youngish and healthy. Given those conditions and no debt, sure, $15K/yr is quite feasible. Especially in the less expensive parts of the country. A high-deductible insurance policy would probably help, especially if one used an HSA to bank as much spare change as possible.
I haven’t read the book yet, but from various reviews I get the impression that Clarey also recommends taking full advantage of the parasitic state as part of his minimalistic plan. The programs are there, why pay for others to use them rather than using them oneself? The current welfare state might as well be designed to encourage parasitism.
@Jason, that’s the point. It’s young, healthy singles or DINKs who will be increasingly shouldering the burden of the parasite state. The next tier of grunts are the middle class and upper middle class families with a few children who work very hard to take care of their own and stay employed, especially if they want to give their children better than the union-run state schools.
I DO live on $15,000 a year.
I don’t recommend it.
A man could.
A woman would demand more money from the government.
When I was in my mid 20′s I lived on $25k per year (i had no debt). I drove an old car, lived in a crappy apartment with annoying roommates. I lived.. but at 42, I wouldn’t want to do it again.
Single guys can do this pretty easily.
Married guys with kids like me are screwed and tattooed.
Message to single men, DO NOT GET MARRIED! EVER!