A reader from New York has a follow-up question for me.
Referencing a “Question of the Week” from last month, in which I expressed guarded optimism that America could be saved, she wants to know what I would do if things go the wrong way.
In other words, what if things go really wrong and America suffers a Greek-style fiscal collapse? And imagine how bad that might be since there wouldn’t be an IMF or European Central Bank capable of providing bailouts to the United States.
Perhaps because of an irrational form of patriotism, I’m fairly certain that I will always live in the United States and I will be fighting to preserve (or restore) liberty until my last breath.
But I probably would want my children someplace safe and stable, so I’ll answer the question from that perspective.
The obvious first choice is a zero-income tax jurisdiction like the Cayman Islands that is prosperous and reasonably well governed.
But I’m not sure about the long-run outlook for the Cayman Islands, in part because the politicians there have flirted with an income tax and in part because the jurisdiction inevitably would suffer if the United States was falling apart.
So what’s a place that is stable and not overly tied to the American economy.
Then the obvious choice is Switzerland. That nation’s long-run fiscal outlook is relatively favorable because of modest-sized government and a very good spending control mechanism.
But while Switzerland is not dependent on the U.S. economy, it is surrounded by European welfare states. And I’m fairly certain that nations such as France, Italy, and (perhaps) Germany will collapse before America.
And even though most Swiss households have machine guns and the nation presumably can defend itself from barbarian hordes in search of a new welfare check, Switzerland’s probably not the ideal location.
Estonia is one of my favorite countries, and they’ve implemented some good reforms such as the flat tax. But I worry about demographic decline. Plus, I’m a weather wimp and it’s too chilly most of the year.
Another option is a stable nation in Latin America, perhaps Chile, Panama, or Costa Rica. I haven’t been to Chile, but I’m very impressed by the nation’s incredible progress in recent decades. I have been to Panama many times and it is one of my favorite nations. I’ve only been to Costa Rica two times, but it also seems like a nice country.
The bad news is that I don’t speak Spanish (and my kids don’t speak the language, either). The good news is that Hispanics appear to be the world’s happiest people, so that should count for something.
“G’day mate, we’ve privatized our social security system!”
This brings me to Australia, the country that probably would be at the top of my list. The burden of government spending in Australia is less than it is in the United States.
But the gap isn’t that large. The reason I like Australia is that the nation has a privatized Social Security system (called Superannuation) and the long-run fiscal outlook is much, much better than the United States.
Plus the Aussies are genuinely friendly and they speak an entertaining form of English.
So if America goes under, I recommend going Down Under.
[...] ARTICLE HERE [...]
Knowing when and where to emigrate, is the entire purpose of my political philosophy; so maybe I should say a few words here.
Broadly speaking I agree with our distinguished host, eg I too would hesitate to leave the US if i were living there. However, there have been very worrying developments, such as the exit tax.
One important point is that it is the Pax Americana that has allowed places like the Cayman Islands, Chile, Switzerland, Estonia, Australia, Hong Kong, Singapore, etc to flourish. I am much more worried about the end of the Pax Americana than about socialist developments in the US.
A few minor points:
* learning a second language is much less difficult than people think, and if your first language is English, the locals will be grateful even for pathetic attempts (if your first language is not English, then the locals will excuse you for speaking English);
* another country that deserves attention is Mauritius: nice weather, nice beaches, and out there in the Indian Ocean who’s going to give it undesired attention?
* speaking of weather, today I skied for about an hour here in Estonia; as usual, I got back home with my undershirt soaked in sweat: it’s hot in this country.
At least the Australian nation-state is mostly co-extensive with a separate continent. That’s another point in its favor.
Australia? Too many poisonous snakes, and too few guns.
Lots of luck, there, mate. The Aussies have a VERY stringent immigration policy… check out their requirements for immigrastion on line and you will see what I mean. I would qualify as to educstion, rexperience in an approved job field, etc., but they won’t let me in because I am too old.Too bad. Not only that, they won’t even let you visit unless you can deposit a return ticket to your county of origin…
I’m going to stay right here in the Great State of Texas. Something tells me we are gonna be fine down here.
“I’m going to stay right here in the Great State of Texas. Something tells me we are gonna be fine down here.”
It does cross one’s mind! I love my city, in Ohio, but sometimes I wonder whether the better long-term choice would be to move to Texas, so that if the United States ever falls apart (so to speak), I’ll be inside when it happens (so to speak).
[...] So with any luck, they’ll be some tax havens around that the rest of us can utilize when that day of reckoning occurs. [...]
[...] There are probably other reasons, but I think you get the idea. No wonder I’ve been speculating about where people should move when America descends into Greek-style economic chaos. [...]
[...] part of my “Question of the Week” series, I said that Australia probably would be the best option if the United States suffered some sort of Greek-style fiscal meltdown that led to a societal [...]
[...] part of my “Question of the Week” series, I said that Australia probably would be the best option if the United States suffered some sort of Greek-style fiscal meltdown that led to a societal [...]
[...] part of my “Question of the Week” series, I said that Australia probably would be the best option if the United States suffered some sort of Greek-style fiscal meltdown that led to a societal [...]
[...] Australia also is one of my favorite nations, in part because of its privatized Social Security system. [...]
[...] Australia also is one of my favorite nations, in part because of its privatized Social Security system. [...]
[…] Unless we want America to become Greece or France, at which point productive people may be forced to emigrate – assuming there are still some sensible nations left in the world. […]
[…] Unless we want America to become Greece or France, at which point productive people may be forced to emigrate – assuming there are still some sensible nations left in the world. […]
I say stay right here in the USA and if it comes to a fight get in the fight and well fight. Cowards run away and thats all I have to say.
Preachin’ to the choir. I reached the same conclusions you have reached. The big question is, when to go? For those with the opportunity, seeking citizenship now, so you may depart whenever desired, seems a good idea. As a physician, my services are in demand in Australia, and I could probably swing it. Any other thoughts? Anybody consider Singapore? New Zealand?
[…] notwithstanding my post about where I would go if America suffers a Greek-style fiscal collapse, I suspect I’ll stay in the United States and fight until my last breath. So I get a little […]
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Dan Mitchell has discussed the issue of where one should RESIDE. But he has sidestepped the question of the country for which one should seek CITIZENSHIP. I’m hardly an expert on this topic, but my understanding is that for people who are not very wealthy, the number of countries willing to hand over citizenship to a foreigner is relatively small. Whatever the number, that is an important part of the analysis.