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by startupdiscuss
2685 days ago
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> I would absolutely expect people to give that up, as well as any senior economist student would tell you, the labor preference curve is backward-bending after you start making a certain amount of money. Are you sure this is a good student? The bend in the curve demonstrates the preference for incremental wealth. So you might forego $500k to $600k. Going down to $0 takes you through the steepest part of the curve. (I guess with interest on savings, the person is going down to something like $25k-$40k.) > There are multiple studies saying that happiness plateaus after a certain amount of income. It's his life and he probably found his own plateau. I am not sure what you mean by "probably found his own plateau". Do you mean he found he didn't need as much money to live? |
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He figured out that living on $150k (stated elsewhere) and doing his own thing 24/7 gives him more utility and satisfaction than earning $500k and working at Amazon full time.
Neither one is particularly interesting, because it's already in dream territory for most people and if you gave them a choice of living on $150k and working on their own business (an enormous safety net), most people would be happy with those options.