Exploring the Semantics: “Digital Nomads” or the Cult of Being Rich

Introduction

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Forty years ago, Bali was still a hidden gem - an untouched paradise known for its breathtaking waves, sacred temples, and vibrant Hindu traditions. It was a haven for locals and surfers seeking raw beauty and spiritual serenity. But today, amid its lush jungles and pristine beaches, a new wave has taken over - this time, of “digital nomads” (The Bali Sun, 2023).

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This trendy term describes people working remotely, free from a traditional office while travelling between cities or countries (Cambridge Dictionary, 2025). They seek a more flexible way of life by escaping from the traditional 9-to-5 grind of capitalist Western societies. Since the coronavirus pandemic, this phenomenon has surged dramatically, with Bali's digital nomad community tripling in size (Digital Nomad Asia, 2024). As of 2024, there were 35 million digital nomads worldwide (Everki, 2024).

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But what makes them different from regular migrants? If a migrant is defined as “someone who changes his or her country of usual residence”, then digital nomads fit this description perfectly (IOM, n.d.). The key difference? Privilege. Much like “expatriate”, this new term is simply a rebrand carrying positive connotations, reserved for wealthy and Western migrants (Nash, 2017). And indeed, 76% of digital nomads are white (A Brother Abroad, 2025).

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However, like any migrants, digital nomads grapple with integration, reshaping local cultures, and gentrification. Yet, their status allows them to live lavishly in the tropics without the stigma or struggles that other migrant demographics face in the Global North. This paper argues that digital nomadism, while framed as a liberating escape from capitalism, in reality, depends on it. It exploits and sustains global inequalities, all while escaping criticism under the shield of Western white privilege.

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A Paradoxical Rhetoric

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Why would someone want to become a digital nomad? Many see themselves as free spirits who have broken away from the toxic corporate culture. They reject rigid schedules for freedom, fleeing high costs, burnout, and office hierarchies in a capitalist system they claim to despise. They travel to countries like Thailand or Mexico, where the sun shines year-round and life feels more intentional (De Los Rios Hernández, 2023). With breathtaking landscapes, tropical climates, and an affordable lifestyle, work-life balance is no longer a myth - it’s a curated reality. It is the digital nomad’s dream: yoga or surfing at sunrise, afternoons of remote work in a cozy café, and socializing with like-minded travellers by evening. Social media has further idealized this lifestyle. Slogans like "Be your boss" and "Work smarter, not harder" are commonly promoted by influencers who have become key figures in this movement (Miguel et al., 2023).

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However, digital nomadism is less about true freedom and more about privilege. Indeed, nomads often continue to work for companies based in Europe or America, only now, remotely. They still earn Western salaries in strong currencies, thus leveraging favorable exchange rates. In Chiang Mai, a prime digital nomad hotspot, they can regularly enjoy a casual meal for just $1.90 (Livingcost.net, n.d.). It is a negligible expense for an American earning on average $30.84 per hour, but far more significant for the $9.10 daily average that Thai workers make (Natthachamon, 2023; Trading Economics, n.d.) Thus, such a slow-paced intentional life is only possible with wealth. Locals in these top spots would not call their country a luxury haven when many still struggle with rising costs and basic needs. In many ways, digital nomads embody a perverted capitalist system that drives them to stretch their money in low-cost places. They exploit the very system they criticize, using advantageous exchange rates created by global inequalities rooted in Western capitalism. 

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A Destructively Hypocrite Lifestyle?

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Digital nomads not only exploit this unbalanced structure but also play a role in perpetuating it. As they flourish in idyllic low-cost locales, places like Lisbon or Bali attract clusters of nomads who, together, displace locals through gentrification (Merida, 2024). In Mexico City, rents have increased 30% in recent years, but in digital nomad hubs like La Condesa, they have surged over 60%. Airbnb has transformed neighborhoods into unregulated hotel zones, making it unaffordable for long-term residents who have lived there for generations (Merida, 2024). Digital nomads also shape local economies to fit their needs. In Medellin, Columbia, long-running corner shops - tiendas de barrio - are vanishing, replaced by coworking spaces and Wi-Fi-equipped cafés (Merida, 2024). They bring Western culture with them: cities sound different. In Rincon, Puerto Rico, English dominates the streets - earning the nickname "Grincon" for its influx of gringos (Merida, 2024).

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This cultural shift echoes the very criticisms immigrants face in Western countries - failing to integrate, not speaking the language, and reshaping communities. Yet, while migrants in the Global North are met with hostility for their “non-conformity”, digital nomads in the Global South are embraced for their spending power. It is because of that same economic incentive that local governments are not stopping this harmful phenomenon, but paradoxically facilitating it. Indeed, digital nomadism is widely regarded as a catalyst for economic growth, contributing $787 billion annually to the global economy (A Brother Abroad, 2023). It develops emerging markets by boosting local businesses through spending and investment, driving innovation, and stimulating improvements in amenities - e.g. WiFi access (De Los Rios Hernández, 2023). Thus, countries like Colombia or Croatia started offering digital nomad visas, which often come with favorable tax incentives (Williams, 2024). It allows digital nomads to evade taxes and responsibilities, using their wealth as a privilege to avoid the consequences of their lifestyle (Bednorz, 2024). This dynamic replicates colonial patterns. It extends the Marxist critique of Western capitalism, where Global South countries depend on wealthier foreign nomads to extract resources for development, without fair contribution (Baylis, 2023). Consequently, if digital nomads critique the insular attitudes of immigrants in their home countries, perhaps they should reflect on the ways they hypocritically embody the same patterns abroad. 

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“Ethical Digital Nomadism”

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The digital nomad lifestyle itself is not inherently wrong. Its issues stem from the capitalist system it operates within. So, can one live abroad ethically? Many digital nomads genuinely seek cultural immersion, from cuisine to traditions. Aware of their lifestyle’s double-edged nature, some promote “ethical digital nomadism” (Lev, n.d.). They support local businesses over corporate chains, engaging in authentic cultural experiences rather than shallow folklorization. Travelers make the effort to learn local languages rather than forming gentrified expat hubs. Most importantly, nomads should approach new destinations with intention, not just privilege. This mindset might promote slower travel, opting for long-term rentals or homestays instead of quick one-month stays in Airbnbs, which can drive up local housing prices. 

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It is also essential to recognize the role of local governments to balance economic gains with residents' well-being. Many like Barbados, eager to attract nomads, offer tax breaks, prioritizing short-term profits over long-term sustainability (Koskela & Beckers, 2024). But stronger regulations are essential. Countries should implement fair visa systems that levy appropriate taxes on digital nomads. While digital nomads contribute to local economies through spending, the primary beneficiaries are often large corporations and small businesses. Natives whose livelihoods are threatened by foreigners do not directly benefit (Lev, n.d.). Thus, increased taxes can mitigate the harmful effects by directly redistributing funds to communities through welfare or infrastructures (Kc & Triandafyllidou, 2025). Jiwasiddi et al. (2022) also suggest encouraging digital nomads to participate in skills transfer programs that could foster genuine cross-cultural interaction and provide significant economic benefits. A well-defined visa status therefore helps legally establish the rights and responsibilities of digital nomads. 

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Conclusion

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No paradise comes without a price. While digital nomadism may appear as a liberating escape from the pressures of capitalism, it ultimately remains entangled in the very system it seeks to flee. They ironically replicate the very behaviors they condemn in migrants coming to the West, yet they remain shielded from criticism by their privilege. Thus, any attempts to embrace this lifestyle ethically must be coupled with strong awareness and thoughtful policies. This paper highlights a deeper flaw in capitalism, showing how privileged Westerners benefit most from this new form of migration. Digital nomads, too, are casualties of a toxic corporate culture. Though they may have the privilege to relocate to more affordable countries, the local populations in those regions rarely enjoy the same opportunities. Capitalism has morphed into a self-perpetuating cycle of exploitation, where the oppressed, in their pursuit of freedom, often become unwitting contributors to the very system that binds them.

 

References

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Bednorz, J. (2024, March 13). Digital nomads: a benefit or burden for local communities? The Conversation. https://theconversation.com/digital-nomads-a-benefit-or-burden-for-local-communities-223107

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