Is ₹84 Lakh In America POOR??? | My Honest Experience Of America

Summary

In this insightful video, the host explores the debate on cost of living and salary parity between India and the US. Traveling to top American cities, he investigates the real value of $100k in the US, comparing it to the equivalent in India. Through personal experiences and interviews, he uncovers the high cost of living in cities like San Francisco and New York, the nuances of purchasing power, and the stark realities of life in America, including healthcare costs and societal issues, ultimately questioning the true essence of the 'American Dream'.

Takeaways

• 📊 The video discusses the concept of Purchasing Power Parity (PPP), which compares the cost of a basket of goods between different locations to determine the real value of money.
• 💼 The debate on the equivalent value of a $120k salary in the US versus ₹30 lakh in India sparked the creator's curiosity to explore the cost of living in the US.
• 🌐 The creator traveled to top US cities to gather firsthand experience and data on the cost of living, aiming to provide an accurate comparison of price parity.
• 🏠 Housing costs in cities like San Francisco are significantly high, with even an hour's drive from the city center requiring a rent of around $3,000 for a one-bedroom apartment.
• 🍔 The cost of food in the US is also high, with a meal easily costing $30-$70 for two people, and tipping being an expected additional expense.
• 🚗 Cars are cheaper in the US, and the public transportation system varies by city, with some areas relying heavily on personal vehicles or ride-sharing services like Uber.
• 🏥 Healthcare in the US is extremely expensive, with high costs for consultations, tests, and procedures, emphasizing the importance of health insurance.
• 👮‍♂️ The video highlights issues like vandalism and theft in San Francisco, attributing it to a law that reduces the severity of theft under $950 to a misdemeanor.
• 🌆 The creator contrasts the impressive infrastructure and economic opportunities in the US with the stark realities of homelessness, drug issues, and safety concerns.
• 💡 The video suggests that the cost of living and quality of life in the US can vary greatly depending on factors like location, lifestyle, and personal choices.
• 🌟 The creator concludes that while the US offers opportunities for higher earnings and a different lifestyle, it also comes with its own set of challenges and considerations.

Q & A

What sparked the debate on India vs. America price parity mentioned in the video?

A tweet went viral comparing the cost of living and salary equivalence between India and America, suggesting that a 30 lakh salary in India is equivalent to earning $120k, or about a crore in America, which ignited the debate.

What is Purchasing Power Parity (PPP) and why is it significant?

Purchasing Power Parity (PPP) is the ratio of the price of a basket of goods in one location to the price of the same basket in a different location. It's significant because it helps compare the real value of money between different countries and adjust GDP to reflect economic performance.

According to the OECD and World Bank, what is the PPP equivalent of $100k in India?

The OECD states that $100k is equivalent to ₹23 lakhs in India, while the World Bank suggests it's ₹21 lakhs.

What was the purpose of the video creator's trip to top American cities?

The video creator traveled to top American cities to find out the actual cost of living in America and to provide an accurate answer to the question of price parity between India and the US.

What was the surprising revelation about the salary of a driver in San Francisco?

The surprising revelation was that a driver in San Francisco was making $100,000 a year, which is equivalent to 84 lakhs in Indian rupees.

How does the cost of living in San Francisco compare to other areas in the US?

San Francisco has a significantly higher cost of living compared to other areas in the US, with rent for even an hour's distance from the city center starting at $3,000 per month for a one-bedroom apartment.

What was the video creator's experience with tipping culture in America?

The video creator found the tipping culture in America to be peculiar and mandatory, with even self-service kiosks demanding tips, adding an extra 10-15% to the cost of meals.

What are some of the challenges faced by store owners in America due to local laws?

Store owners in America face challenges such as high rates of theft due to laws like California's prop 47, which classifies theft of property under $950 as a misdemeanor, not a felony.

How does the video creator describe the discrepancy between the perceived image and the reality of San Francisco?

The video creator describes a discrepancy where San Francisco appears developed and safe due to its infrastructure and tech advancements, but in reality, it has issues like homelessness, drug crises, and high rates of theft.

What are some of the advantages of working in America according to the video?

Some advantages of working in America include faster promotions, the potential to reach a $250k salary in less than 3 to 4 years, fixed working hours, paid overtime, and weekend offs.

What is the video creator's perspective on the Indian talent pool and their potential in the global context?

The video creator believes that Indians can survive and thrive anywhere in the world due to their hardworking nature, which is ingrained in their DNA. Indians are raised to be determined savers and can outperform their peers globally.

Outlines

00:00

🔎 Exploring the Reality of Price Parity Between India and America

Varun begins the video by addressing the viral tweet that sparked a debate on the cost of living and salary equivalence between India and the US. He questions the common assertion that a ₹30 lakh salary in India is comparable to a $120k salary in the US and decides to investigate the truth behind this claim. Varun traveled to top American cities to understand the real value of $100k in the US and to compare living costs and lifestyles between the two countries. He introduces the concept of Purchasing Power Parity (PPP), which is a measure used to compare the cost of goods and services between countries, and acknowledges its limitations due to varying individual spending habits. The video promises a firsthand account of the cost of living in the US, with a focus on San Francisco and New York, as well as a comparison of the equivalent lifestyle one could have in India with the same salary.

05:01

🏙️ The High Cost of Living in American Cities: A Driver's Perspective

In this paragraph, Varun shares his experience with a driver in San Francisco who earns $100,000 a year, a figure that equates to approximately ₹84 lakhs in India. The driver, originally from Brazil, lives an hour north of San Francisco and pays $3,000 (₹2.5 lakhs) in rent, highlighting the high cost of living in the area. Varun uses this anecdote to delve into the cost of housing in San Francisco, confirming through online research that even cheaper areas require a minimum of $2,000 for a one-bedroom apartment. He also discusses the differences in apartment sizes and the cost per square foot between the US and India, emphasizing the higher rental costs in American cities. Additionally, Varun touches on the topic of tipping culture in the US, which adds an extra 10-15% to the cost of dining out, and the peculiarity of tipping even at self-service kiosks.

10:02

🚗 The Cost and Experience of Transportation in America

Varun discusses his fascination with American roads and infrastructure, particularly the well-organized lane discipline he observed. He shares his experience of a road trip from San Francisco to Los Angeles, highlighting the scenic beauty of the journey. However, he also points out the cost associated with transportation, such as the $700 expense for a three-day car rental and the high cost of using Uber due to the lack of an efficient public transport system in California. He also mentions the affordability of cars in the US compared to India and his experience with a driverless cab service, Waymo, in San Francisco. Varun then uncovers the issue of vandalism and car break-ins in San Francisco, attributing it to a law known as prop 47, which classifies theft under $950 as a misdemeanor rather than a felony.

15:03

🚨 Safety Concerns and the Reality of Living in San Francisco

In this paragraph, Varun expresses his concern about the safety issues in San Francisco, including rampant car break-ins and the city's high rate of homelessness and drug use. He describes an incident at a Target store where shoplifters were not stopped due to the fear of being charged with assault. Varun also discusses the economic implications of California's high cost of incarceration and the impact of petty theft on businesses. He shares his unsettling experience at a crowded Starbucks, where he realized that most of the people were homeless and seeking shelter from the cold. This leads him to reflect on the disparity between the impressive infrastructure and the underlying social issues in San Francisco.

20:04

🌆 Contrasting Impressions of New York City and the Challenges of Living Abroad

Varun contrasts his awe at the skyscrapers and vibrant atmosphere of New York City with the unpleasant realities of the city's streets, including the smell of urine and the presence of garbage and rats. He discusses the discrepancy between the branded image of America and the actual on-the-ground experiences. The video script also touches on the potential for rapid career advancement and better work-life balance in the US, but also the anxiety associated with the H-1B visa lottery system. Varun then transitions to discussing the emotional and financial costs of living away from family and the challenges of affording certain luxuries, like a personal cook or maid, on a $150,000 salary in the US.

25:05

💔 The Striking Reality of America's Healthcare System

This paragraph delves into the complexities and high costs of the American healthcare system. Varun shares his personal experience trying to get a specific blood test, highlighting the need for a prescription from an American doctor and the difficulty of securing an appointment. He is shocked by the cost of medical consultation and the blood test itself, which amount to $652 and $2,000 respectively. He emphasizes the importance of health insurance in the US and the prohibitive costs of medical emergencies. Varun also discusses the high costs of other medical procedures and the stark contrast between the availability of advanced medical treatments and the accessibility due to their cost.

🌟 The Pursuit of Opportunities and the Indian Spirit of Resilience

In the concluding paragraph, Varun reflects on the determination and hardworking nature of Indians, who can thrive in any part of the world given the opportunity. He expresses his desire to create opportunities in India so that people don't have to chase the 'American dream' and can achieve social mobility at home. Varun acknowledges India's shortcomings but encourages taking action to improve the situation. He wraps up the video by inviting viewers to share their experiences and thoughts on the topic and reminding them to subscribe for more content.

Keywords

💡Purchasing Power Parity (PPP)

Purchasing Power Parity (PPP) is an economic concept that compares different countries' currencies based on a 'basket of goods' approach, to determine the relative value of those currencies without the influence of exchange rate fluctuations. In the video, PPP is used to discuss the cost of living and wage comparisons between India and the United States, highlighting the disparity in the cost of goods and services, and the relative value of a salary in each country.

💡Salary Equivalence

Salary Equivalence refers to the comparison of earnings in different countries, taking into account the cost of living and the purchasing power of the currency. The video script discusses the debate over whether a 30 lakh salary in India is equivalent to a $120k salary in the U.S., using this concept to explore the real value of money in both countries.

💡Cost of Living

Cost of Living represents the amount of money needed to sustain a certain standard of living in a particular location, including expenses such as housing, food, and healthcare. The video script uses the cost of living as a benchmark to compare life in America and India, with examples of rent, food, and transportation costs in U.S. cities.

💡Lifestyle

Lifestyle encompasses the interests, opinions, and behavioral patterns that together describe the way a person lives. In the context of the video, the term is used to compare the equivalent lifestyle one could have with a certain salary in both India and the U.S., taking into account the differences in cost of living and the value of money.

💡Rental Costs

Rental Costs refer to the expenses associated with renting accommodation, which can vary greatly depending on the location and type of housing. The script highlights the high rental costs in cities like San Francisco, with examples of drivers paying $3,000 for rent, illustrating the significant portion of income that can be allocated to housing in the U.S.

💡Tipping Culture

Tipping Culture is the social norm in some countries, like the U.S., where service workers such as waitstaff and bartenders receive additional payment from customers beyond the listed price of goods and services. The video discusses the expectation and obligation of tipping in America, which can add a significant cost to dining out.

💡Healthcare Costs

Healthcare Costs represent the expenses associated with medical services, treatments, and insurance. The video script emphasizes the high costs of healthcare in the U.S., including consultations and tests, which can be a substantial financial burden for individuals without adequate insurance coverage.

💡Homelessness

Homelessness is the condition of not having a place of one's own to live. The video script discusses the issue of homelessness in San Francisco, noting the visible presence of homeless individuals and the societal and economic factors contributing to this problem.

💡Quality of Life

Quality of Life refers to the general well-being and satisfaction of individuals, often influenced by factors such as health, safety, and living standards. The video contrasts the quality of life in India and the U.S., considering aspects like air quality, civic sense, and the availability of services and opportunities.

💡Remittances

Remittances are money transfers sent by foreign workers to their home country. The script mentions India as the largest recipient of remittances, highlighting the practice of Indians working abroad and sending earnings back home, which can significantly impact the economy and the lives of recipients.

💡Social Mobility

Social Mobility refers to the ability of individuals to move between different social classes, typically through improved economic status. The video script discusses the concept of social mobility in the context of India, where the creator expresses a desire to create opportunities for people to improve their lives without having to go abroad.

Highlights

A tweet about the cost of living in India versus America sparked a debate on salary equivalence.

The concept of Purchasing Power Parity (PPP) is introduced to compare the real value of money across different countries.

The debate on PPP's simplicity and its limitations in accounting for individual spending habits is discussed.

OECD and World Bank's differing valuations of what $100k is worth in India are presented.

The experience of a Brazilian driver in San Francisco earning $100k annually is shared.

The high cost of living in San Francisco, including $3,000 rent for a one-bedroom apartment, is highlighted.

The disparity in the size of a 1 BHK apartment between the US and India is noted.

The lower cost of cars in America compared to India is mentioned.

The cultural expectation of tipping in the US is explained as being practically mandatory.

The video showcases the author's experience with a driverless cab, Waymo, in San Francisco.

A high rate of car break-ins and vandalism in San Francisco is reported, linked to a lenient law on petty theft.

The contrast between the impressive infrastructure and the social issues in San Francisco is discussed.

The video editing cohort by Aevy and its success in placing students in jobs is promoted.

The emotional and financial costs of living away from home and the healthcare system in the US are critiqued.

The high cost of medical tests and consultations in the US is shared from personal experience.

A chart comparing the cost of living and savings potential in the US versus India is promised.

The video concludes with a reflection on the Indian work ethic and the desire to create opportunities at home.

Transcripts

Varun-”It’s recording right?”

So it all started when a tweet

went viral recently about India v/sAmerica price parity.

A lot of people were saying that, you know,

getting a 30 lakh salary in India

is equivalent to getting $120k,

which is roughly about a crore in America.

Another person posted this.

People who were living in America got angry

and were like,

you cannot put a price on fresh air.

Honestly, it's been a decade long heated debate

and I started questioning, are these figures true?

How much does it actually cost

to live in America?

How much really is $100k worth in the US?

How much is that worth in India?

Is it ₹30 lakhs?

Is it ₹40 lakhs? Or is it ₹80 lakhs?

What would the equivalent lifestyle be?

So to get an accurate answer.

I decided to make a video.

I traveled

to the top American cities last month

and found the answer myself.

In this video, I've created comparisons

that provide the one video

you need to answer your questions

about price parity in America.

With examples by the way. I went there.

I am a testament to this.

And I'll also show you what America,

San Francisco, New York was like.

Let's begin.

We start with the basics first.

Let me explain something

called Purchasing Power Parity.

So Purchasing Power Parity or “PPP” is simply

the ratio of the price

of a basket of goods at one location, divided

by the price of the basket of goods

at a different location.

But why is it important?

You see, prices of goods

and services differ between countries,

and it can be difficult to compare

how much your money will buy in different places.

Let me give you an example.

$3 can get you one can of soda in America,

but three cans in India.

And this is where “PPP” or Purchasing Power Parity comes in.

It basically lets us

compare the real value of money

between different countries,

and also helps

us adjust GDP to show how an economy is doing.

Now, you know, every time it comes to this U.S.

versus India comparison,

people will say that PPP is too simplistic.

It doesn't take into account a lot of things,

which is also a fair argument,

because your basket of goods or spending habits

may not be similar to other person's

basket of goods.

For example,

if you're a fresher,

your needs would be very different

from a family of four

who will probably need car, schooling

for their children, etc.

Based on the current calculation, though

the OECD says that $100k is ₹23 lakhs in India.

The world Bank says it's ₹21 lakhs.

But if you stick with me till the end,

I'll tell you what I learned from my experience.

So from the very moment

I stepped in American soil,

I started doing my research.

The very first person we met was

a driver sent by Google,

who came to pick us up in San Francisco.

He was from Brazil,

had moved to America to work,

and he was just the right candidate

because guess what?

He was making $100,000 a year.

Yes. Let that sink in.

A driver making $100,000.

That's basically 84 lakhs.

Honestly, I thought he was lying.

But over ten days, I asked,

“How much do you make?” to every single driver,

every person I met across San Francisco,

L.A., New York. And all the drivers we met

were making 7-8 thousand dollars per month.

Yep! It blew my mind too.

It also made me question,

does everybody starting out in America

make like $100,000?

Is it more like making

5 LPA salary in India?

Because drivers back home make that much?

Also, does it mean that all our friends in US

getting a one crore package

are actually just making entry level salaries?

So it's obviously

a little more nuanced than that.

But before we talk about that,

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Now back to the video.

This was my very first candidate,

so I was also a little apprehensive

of recording him

because I didn't want him to get angry.

But I also casually asked him,

so how do you spend your $100,000?

That's a lot of money,

you must be saving a lot, right?

He was like,

“No, $100,000 is nothing in San Francisco, you know”

“I live an hour north of San Francisco

and I pay like, $3,000 rent.”

“I've got a kid, so it's kind of tough.”

This specific day will be a rent of $3,000.

Living an hour away north of San Francisco.

$3,000 is ₹2.5 lakhs.

He mentioned it was impossible to find a home

for his family of three,

even an hour north of San Francisco,

for less than $3,000.

That is quite a lot, right?

Was he sure about this?

I opened Craigslist right away to check the rent.

$3,000 for a one bedroom.

That sounds insane.

Now, I also realize the Bay area

is actually made up of small pockets

of different-different areas.

So there's Palo Alto, there's Woodside,

Atherton, Menlo Park,

where a lot of rich founders stay.

but then there are also the cheaper areas.

And I'll tell you what,

the cheaper areas also cost $2,000 minimum

for a one bedroom apartment.

This is Silicon Valley, by the way.

Wait till you guys see New York.

So this was Sandeep,

another driver we spoke to in New York,

Varun-”Including all of that?”

Sandeep-”5000 plus.”

And he was also telling us

how his monthly expenses were $4,000 per month.

That's around ₹3.3 lakh.

So he didn't actually stay in the city.

He stayed outside of the main city.

And he said with gas,

insurance, everything included,

his expenses were $65,000 a year.

That is ₹54 lakhs.

That's just mind boggling.

By the way,

I also want to show you guys my room

that we got in New York.

There was literally no space for me

and Varun to walk and cross each other at the same time.

But I'll tell you what, that's not surprising part.

Take a wild guess

how much this shoe-box costed us.

₹10,000? ₹15,000?

Nope!

It was ₹30,000 per night.

This is also when I realized that,

you know, even if I pay $2000 or $3000

to get a 1 BHK apartment here,

there's a significant difference

in a 1 BHK here,

versus back home.

Basically in India, a 1 BHK

is more like 700-800ft².

That's probably something as big as this.

But in America

it could also mean like 200-300ft²,

which is probably something like this.

Especially in the big cities.

Essentially, what I realized

was that the price per square feet

rental in America is much, much higher.

Now there is some good news.

You don't need to be living

in the big cities, downtown.

You can also probably go stay an hour away

and commute to work, or stay in smaller towns,

where you can get mansions as big as this.

But then, you know, you could also go missing out

on networking opportunities,

events like these.

Or just really experiencing America

like the movies and TV shows

we've grown up watching shows us.

And I also found out some scary details

that I'll tell you right

after we cover all the good stuff,

that's the American food and the American cars.

Aren't you hungry?

This is pretty good.

You’ve gotta be loosing money on this.

America’s pizzas, America's burgers,

all taste really, really great.

Now, let me show you how much they actually cost.

So this is my very first meal,

it was two burgers,

two fries, two drinks, and one tiny avocado,

which cost us $46.

That's close to ₹3,800.

In fact, every meal we had after this,

was a minimum of $30

for two people

going up to $60-$70 in nicer places.

Now, I want to show you something odd.

I want you to observe this bill and notice an anomaly.

Did you spot it? No?

Can you see this $5 tip on the bill?

$5, that's nearly ₹417.

Now, did you know?

That in America,

tipping is not just expected,

but it's practically mandatory.

I literally couldn't wrap my head around this.

So every meal that you eat out

will actually cost you an extra 10-15%.

Thanks to this peculiar gratuity culture that they have.

Dora.

Doru! *UwU*

Come here.

Sit.

Good girl. *^_^*

And I’ll tell you what,

it gets weirder.

Because even self-service

kiosks demand tips at checkout.

Which is strange,

because what exactly are you tipping for

when it's self-service?

Because there is no service there.

You are doing all the work.

I ask “Have you lost your rabid ass minds?”

And you know what?

If anybody's around and they see

that you're not tipping them,

they'll actually get mad at you.

Now, I realize the whole issue

is that the FNB industry in America,

they don't pay the helpers and waiters well.

Most of these helpers are paid

minimum wages.

So a lot of these folks

make most of the money from tips.

By the way,

a New York local was telling me that

if you don't dip them,

the waiters will literally record a video of you

and put it on TikTok,

or put it online saying that

“Look at this terrible customer who only paid us like a 5% tip.”

Delivery Man-“I just want to say the nice house for a $5 tip.”

Lady-”You're welcome.”

Delivery Man-”F*ck You.”

Now let's talk about roads.

I-

Love-

Roads!

I know it’s a strange thing to say.

But, I love studying roads,

I love urban infra,

and I love how good roads

have a multiplier effect on the economy.

Highways of the future.

We have to have these roads

to meet the economic growth.

The population shifts.

In fact, I’ve done a whole video about this.

You can check it out here.

So I basically really enjoyed American Roads.

It was my favorite part about the whole trip.

We in fact did a road trip

driving all the way from San Francisco

to Los Angeles.

And you know, while you're driving, on one side

you've got the ocean and the other side

you've got the grasslands.

I'm not going to lie,

it literally feels like a scene

right out of a movie.

Also, the lane discipline

was very interesting to observe

because for somebody who loves things

being super organized,

this was a treat to the eyes.

Now,

what does it cost to experience

these amazing roads?

Well, we paid around $700 for this car

for three days.

The public transport system

kind of sucks in California.

It's not like New York, where you have subways.

So we had to rely on Ubers,

until we got a car of our own.

You can check some of my bills out.

Take a closer look.

Because Uber is really,

really expensive in America.

It also kind of makes sense

why Uber drivers make so much money here.

Because for even the tiniest of distances,

you're literally paying $20-$30,

which is close to ₹2000-₹3000.

By the way,

cars are much cheaper in America than in India.

Check these out.

These are some old cars that you can get for

₹8-₹9 lakhs and ₹16 lakhs,

and they look

So-

Damn-

Good!

By the way,

talking about commute,

I cannot not show you guys this.

So we took a driverless cab,

Waymo, in San Francisco.

AI-”This experience may feel futuristic.”

And I've literally never experienced

anything like this.

I was honestly kind of confused

whether to marvel at how far technology has come

or be scared.

So it comes,

you open it, sit, put a code,

and it starts driving to the destination.

You think we'll ever get this in India?

Let me know in the comments.

Anyway!

Remember I told you I found out

some pretty disturbing details about San Francisco?

While we were in this Waymo.

I was watching some videos

about this self-driving Waymo cab on my phone, okay?

And I stumbled upon this one video

of a Waymo burning!

Now while I was in San Francisco,

I would often see these signs saying,

don't leave things in your car

or people will break it open.

So I got curious, like, what is going on?

I didn't know how bad it was.

Did you know?

that vandalism, breaking into cars, burning down cabs,

it's actually pretty common in San Francisco.

20,550 car break ins last year in SF

That's almost 59 car Break-Ins every single day.

I was questioning some locals about this,

and they told me about this

very interesting law in California,

which is called prop 47.

This law basically says that theft of property

with the value of less

than $950 is considered

petty theft and called a misdemeanor.

It's not a felony.

So you can literally just break open cars,

make sure that the theft is under $950

and walk away.

Even the cops were like, the people know the law,

one of the first things they ask us is,

“Can I just get a ticket and be on my way?”

if they get caught.

This is wild.

But then I saw it happen

right in front of my eyes at target.

So there were these two men who looked

absolute normal. Okay.

They walked in.

picked up a bunch of things and walked off.

And not a single person stopped them.

So I was like, what is going on?

Why is nobody stopping these people?

And the person at target told me,

you are not allowed to touch people

or you can be charged for assault.

So you just have to let these people walk away.

I was like, what?

You know,

they also cannot put people in jail

for petty crime because the cost of locking up

someone in California is around $132,000.

So locking up a California state prison

for one year

cost nearly twice

as much as tuition at the state's

top private universities.

In fact,

even New York loses $4.4 billion

to theft every year.

If you are a store owner in America,

you're basically screwed.

You know, every time

the argument of purchasing power parity

comes up,

people start arguing.

Saying that you can't put a cost on fresh air.

And I agree, you can't.

But you also cannot

put a cost on all of this.

You cannot put a cost on safety.

You cannot put a cost

on the whole fentanyl crisis

that's going on in Silicon Valley,

and people who become addicted to substances

because there's so readily available

and no one's going to stop you from taking it.

There are literally

so many homeless people in San Francisco,

and no,

they are not like the homeless people

you see in India.

These people look normal.

They're dressed normal.

Except they're on all sorts of drugs.

Look at this video, okay.

This is a random homeless person on the street

casually talking to herself.

And on this very same day, by the way,

something very scary happened.

So I wanted to get coffee,

and I didn't know that

literally nothing,

nothing is open on a Sunday in San Francisco.

So the only place that was open was Starbucks,

which was like 15 minutes away.

So I walked in and it was very, very crowded, okay.

Now, while I was standing in the row,

there was a person

standing right behind me, and he started whispering

something in my ear.

So I suddenly turned around.

I was like, what's up?

And he looks at me and he goes like,

“Hey-

-do you have a dollar?’

“Can you buy me a coffee? please?”

“I'm hungry and I have no money.’

That is when I stopped

and I looked around the whole Starbucks

and I realized that most of the people there,

they were not customers

waiting to buy coffee from Starbucks.

They were all homeless people

who were standing there inside Starbucks

because it was too cold to be outside,

and this was the only place open on a Sunday,

so they were actually inside for shelter.

This was very-very eerie.

So I literally just ran because think about it,

they won’t be charged anything

if they take less than $950 from me

because it's not a felony. Right?

Now New York, L.A., Palo Alto, Mountain View,

a lot of the other areas in Silicon

Valley were not like this,

but something is just very off

with San Francisco.

You know, the halo effect.

When you've heard

so many good things about a place,

you feel like it'll be a good place.

The buildings looks so good,

so do the roads.

How can it be unsafe if it feels so developed?

That's when I realized, it's not always the truth.

I don't think you can understand

the ground reality of any place

until you visit it yourself.

And I keep thinking about this quote again and again. That,

“Hard times create great men”

“Great men create good times”

“Good times create weak men”

“Weak men create hard times”

And I feel like somewhere

this is what's going on in

America, particularly San Francisco,

because from what I could see, the infra,

the tech,

everything they’ve built is insane,

incomparable to India.

They did have good leaders.

That's why I was so confused.

Why is there so much homelessness?

Why the drug crisis?

The current state of it

did not match how I had imagined it to be.

You know even New York for that matter,

the skyscrapers,

Absolutely magnificent.

They made me marvel at what us humans can build.

I've never seen anything like that in my life.

Beats Tokyo I’ll say.

But, you know,

as soon as I landed

and reached the area

and got out to get to my hotel,

taking in the fresh New Yorker, I was like, wait,

what the heck?

It literally smelled like piss.

Everything above me was great,

but the minute you look down, you're like,

what's going on?

And I honestly wish I was exaggerating

because I wanted to visit New York all along.

I wanted to be pleasantly surprised,

but this was exactly my first impression.

Insane buildings.

What a vibe.

But why is there piss?

Why are there so many rats?

And why is there so much garbage on the street?

Now, before you folks say,

“Have you been to Bombay?”

“Seen the slums?”

Yes, I have,

and we are fully aware of what it's like.

It's not made out to be anything else in media.

We know where we stand.

We know where we lack.

We have a long, long way to go.

But, you know, America is branded very differently.

Differently than its actual on ground reality.

And I'm not refuting the good stuff.

In America,

you can literally get promoted

much faster and reach

a $250k salary in less than 3 to 4 years,

which you cannot do in India.

You also don't have to work

10-12 hours every day.

You have fixed timings

and you paid for all the extra hours,

your weekend are off.

None of these are also discussed

in the whole purchasing power parity arguments.

But also, on the other side,

getting a job in

America comes with a whole lot of anxiety

or dealing with H-1b lottery.

That's basically you can work hard,

get a job,

but at the end of the day,

it's a lottery that decides

if you get your work visa.

And more than seven

lakh applicants

for less than two lakh work visas.

We did a whole breakdown of it here.

By the way,

I interrupt this segment

to share some news with all of you.

So around one and a half years ago,

we started a video editing cohort

because we had this thesis that we are moving

towards a world where it's becoming

easier and easier to build products,

but harder to get users.

So distribution is going to become the mode.

And, you know, somewhere that thesis was right?

Because if you look at companies, founders,

everybody is creating content right now.

And honestly making

compelling videos, understanding

the algorithm is now a legitimate long

term career.

We at Aevy also are

now in the middle of our 7th cohort,

and we have trained over 1800+

video editors who are now working with companies

like Blinkit, Zerodha,

Zoho, and folks like Ali Abdaal, Nikhil Kamath,

Tanmay Bhat.

you know,

80% of students

who applied for placements have got jobs

with average salaries of 4.5 lakh per annum.

And I don't know if I can legally say this, okay.

But honestly, anybody and everybody who joins

the cohort is willing to finish the cohort,

get their portfolios ready.

We have a job for you,

and we have worked very,

very hard to create this recruiter

network of 500 companies.

Who are all hiring multiple video editors from us,

by the way.

You know, while we have so many people

complaining about

not getting jobs on the internet,

I keep telling them, come to our cohort,

we can help.

But then they say, oh, it's video editing.

But honestly, that's

what the demand is right now.

And you need to be okay with a job

that's not software engineering.

And I'm not exaggerating.

We have more recruiters than students

sitting for placements

as of now

and getting packages

higher than engineering colleges.

You know what? Don't take my word for it.

Come experience it firsthand.

We're doing a free masterclass

where you can learn how to edit videos like AevyTV,

understand content better,

get to know our instructors,

know what our community is like

and see some of the work

that our cohort students have done before.

And more than anything,

knowing content, knowing editing will help

all of you build leverage for yourself.

So come watch it

even if you don't want to join the cohort

because you might just end up learning

something new.

I’m putting the masterclass link in description.

See you there.

We also don't discuss the cost

of living away from family.

The emotional cost of being alone,

and feeling a little bit scared

because you're not in your homeland.

We don't discuss how in India, a person earning

even like 20 lakhs can easily afford a cook, maid

and even a babysitter for that matter.

Is that possible with $150,000 in USA?

It’s not.

The air quality, pollution,

yes, it's much better.

Civic sense is much better.

You do lead a healthier life,

but when and if you fall sick

or get chronic illness, the cost of healthcare

in America is absolutely bonkers.

Health care spending in the U.S

is estimated to be $3.5 trillion.

They build our insurance company over $3 million

for the cost of transplant.

$200 for a blood test,

$20,000 for one single stent.

Just exorbitant.

I mean yeah, people say it's broken.

But, broken is one thing,

making it so expensive that it's practically

inaccessible is another.

You know, that's also when I realized,

most of the arguments made on Twitter,

around this, are by young folks

who have actually never faced any health anomaly.

I got to experience it firsthand.

So let me share my experience.

So it's a blood test

I've been wanting to get for the longest time,

which is only available in America.

Kudos to America

for being way ahead in medical R&D,

but access to these medicines quite a task.

So firstly,

to get this test

we required a prescription

from a doctor in America

because they didn't accept

the Indian doctor prescription.

So for that we needed

an appointment with the doctor.

This was literally impossible in San Francisco

because, doctors don't

seem to want to see patients.

They all leave by 4-5 p.m.

So after days of trying to find a doc,

we finally got an appointment

with the doctor in Los Angeles.

It was very professional,

good doctor. But guess what

the consultation costed us?

This consultation of half an hour costed us

$652

That's ₹54,000 for a half an hour consultations.

I just- I just couldn't wrap my head around this.

Now, finally,

after the most expensive

consultation of our lives,

we got the prescription.

Next, we had to get the blood test done.

Guess how much the test costed us?

Take a wild guess.

$2,000,

which is ₹1.67 lakhs for blood test.

And you know what?

If you go to the emergency or ER,

the cost of everything doubles.

So God forbid

you have a medical emergency, you are screwed.

You literally cannot survive in America

without health insurance.

Anchor- “A teddy bear appeared on someone's medical bill.”

Anchor- “As a cough support device for $57.”

My friend was telling me how she had a ligament tear,

and she had to pay $3,000 for a cast.

Her insurance covered $1,500,

but the remaining $1500

she had to pay out of her pocket.

So based on my experience, everything I learned,

I’ve created a whole chart for you guys.

I added my inputs.

So you can take a screenshot of this

when you're comparing.

$100,000 salary, is actually like an entry

level salary in big cities like New York,

but in states like Ohio,

it could be considered a substantial income.

So if you make $100,000 salary in S.F.,

and live in S.F,

and if you want to save ₹1.5 lakhs a month,

you need to be living below your means.

But to save ₹1.5 lakh in Bangalore in India per month,

this is what you need to be earning.

How much you save in

America will be subjected to where you live,

the state taxes and your needs.

For example cars, electronics

much cheaper in America,

but house is significant, more expensive.

So when you're older

and you need to buy a house for your family,

and the cheapest

you can get is a tiny house

for $1 million in the valley.

That's when the numbers and the ratios go bonkers.

And that's why I say,

numbers never tell the full story.

In fact, I met a few Indians at Google I.O. event,

who were making decent salaries,

but they were not living in the main city.

They lived an hour away,

in single rooms, paid very little rent,

save money,

paid off their student loan, work

double shifts and sent money back home.

And when you do that,

this “PPP” doesn't matter

because you're saving are actually in absolutes.

As in, you're earning in dollars

and sending that $2,000,

the full amount,

back in India to be saved in India

as Indian rupee.

So that's a saving of nearly 1.6 lakh per month.

And many Indians

do that, you know.

In fact,

India is the largest recipient of remittances,

with inflows of about $125 billion in 2023,

or 3.4% of our GDP.

So, yes,

if you can go to America,

get your H-1b sorted,

spend very frugally

pay off your loans,

and get multiple promotions to reach

that $400K-$500K salary.

At that point,

none of these arguments even matter.

Your savings are going to be subjective to you,

your lifestyle.

If you are somebody who likes living

life king size,

then even $500,000 is not going to be sufficient

for you in a big city in America.

Hence, in my opinion,

Purchasing Power Parity,

only captures a narrow slice of reality.

And after speaking to many Indians there,

I realized one thing.

You know we Indians,

we can survive and thrive anywhere in the world

if we put our minds to it.

I feel like working hard is literally in our DNA.

We leave our country

because we feel like we can get more

for the same amount of hard work there.

Higher returns.

And it make sense.

But I think Indians working anywhere

will beat their peers

because that's how we are raised.

If we decide we want to save

two lakhs a month,

we live below our means and save that amount.

But that's also why I want to stay here,

because I realize how much talent we have

and all this talent, all these people,

all they're looking for is an opportunity.

And that's what I want to do here.

I want to build here

and create those opportunities for people,

so they don't have to go

chase the American dream,

but feel like they've got a shot

at social mobility here as well.

And that's what we are trying.

I want people to feel like

they can get out of the rat race

and build a good life here as well,

and I know India has shortcomings and lots

and lots of them,

and we've got a long, long way to go.

But if you don't take a shot

at improving things, who will? Right?

So yeah, that's all for today's video.

This was a slightly different video

than what we usually do on AevyTV.

Let us know what you thought about it,

what you took away from it.

And if you have any experiences

about America to share with us,

please drop them in the comments below

as somebody else might learn something from you.

That's it for today's video.

My name is Achina Maya.

And please

don't forget to hit the subscribe button.

See you in the next video.

*kisses for you all* UwU