The cost of food above subsistence level is mostly labor / discretionary. I could live on beans and rice and spices bought in bulk for a tiny fraction of my income pretty much anywhere in the world, but I’d often rather pay to have someone prepare something nice and then bring it to my door.
So maybe a different / more general answer to the question you originally posed is that stuff that’s truly pure “stuff” is actually a relatively small fraction of what people consume—most consumption by dollar value is actually (indirectly) consumption of labor, which often has to be local.
Making raw potatoes available to buy also requires some local labour and renting a local warehouse / supermarket. I think labour and rent are upstream of ~all of the differences in local purchasing power. To me, the main question is why so much software is being built in SF as opposed to cheaper areas, and I find this confusing but I think the bay is something like a schelling point for tech talent and tech firms, and remote work unfortunately just doesn’t work well enough. And something similar is true for other expensive high-income places.
The cost of food above subsistence level is mostly labor / discretionary. I could live on beans and rice and spices bought in bulk for a tiny fraction of my income pretty much anywhere in the world, but I’d often rather pay to have someone prepare something nice and then bring it to my door.
So maybe a different / more general answer to the question you originally posed is that stuff that’s truly pure “stuff” is actually a relatively small fraction of what people consume—most consumption by dollar value is actually (indirectly) consumption of labor, which often has to be local.
raw potatoes cost about $2/kg in the US, $0.50/kg in china, and $0.25/kg in india. so it’s clearly not just the cost of preparation.
Making raw potatoes available to buy also requires some local labour and renting a local warehouse / supermarket. I think labour and rent are upstream of ~all of the differences in local purchasing power. To me, the main question is why so much software is being built in SF as opposed to cheaper areas, and I find this confusing but I think the bay is something like a schelling point for tech talent and tech firms, and remote work unfortunately just doesn’t work well enough. And something similar is true for other expensive high-income places.