The mechanics of the economic meltdown in North America

In mid-March, 2009, the President of Brazil placed the onus of worldwide economic mess on “white people with blue eyes.” His derogatory remark referred to people in America at the helm of government, who had, over the last few decades, imploded the world economy with ignorance.

The claim made by the Brazilian President is debatable. But we know it is the people of North America and their lavish money splurging that has brought about this state of affairs. When you have basked in near decadence for six decades and more, you tend take luxuries for granted.

Not any more though. China is now the factory of the world and India does the paper work. The United States is still a fountain of new technology; however, high wages make many businesses unviable.  And of late, President Obama must be sending the shivers into the armaments industry since the prevailing mood is dovish. Very soon America will distance itself from all forms of belligerence.  They are simply too broke to engage in the luxury of confrontation.

The wooden headed economists at Fannie Mae, Freddy Mac and AIG brought this on America and the whole world.  And waiting round the corner is the collapse of the auto industry. There is not much President Obama can do to revive the economy. He will simply have to stay the course and keep firing CEO’s to dish out more “bail out money.” President Obama is the heir to a mess created largely by his predecessor.

Not many in North America would have foreseen these repercussions: A lack of institutional funding for future credit and a meteoric rise in unemployment to cripple earnings. If the world were not so badly affected by the economic meltdown and the ripple effect, Americans richly deserved voting for George Bush for two successive terms. 

But the crux of the matter is the basic North American inability to live within their means. The credit card was important to fuel a vibrant economy. And now banks themselves are reluctant to lend money.

To run the economic machine of a nation you first need to run your house without going into the red. Consider the South Asian by comparison. Even the South Asian woman is the antithesis of her North American counterpart: She handles the grocery shopping of her house like a role model economist and is adept at balancing the family budget. There is much for an Alan Greenspan and a Bernard Bernanke to learn from her.

Losing your first job and ” One day at a time” for the new immigrant

The concept of “ one day at a time” is simple- and yet easy to set aside. Even those who keep this adage as a guiding beacon are tempted to digress and surf the future. Immigrants to Canada are often advised by older immigrants to live life “one day at a time.” But the temptation to rush the agenda is far too tempting. The result is not unexpected: Stress and despair suddenly surface.

The problem with trying to look into to far ahead is that the future slips away further and the present is lost forever. In that context let us try and understand how the principle works if we are to take an elementary example: Go out to your workplace, work for the day as best you can ( a degree better than on the previous day) and don’t think of what tomorrow may have in store for you.

Take nothing for granted in Canada- especially your job. One day you have it; the next day your tears might blot the pink slip you clutch crestfallen and shattered. That too shall pass. It is all part of the acclimatization process and it almost invariably works for the betterment.

More often than not it is a blessing in disguise: You learn to grow double- quick in a seemingly alien environment till such time the hide on your back is thick enough to withstand much more inadvertent “ new-world lashes.”

I have seen, first hand, the reaction of people, close to me, who lost their jobs-got laid off, or were fired for the first time in Canada. Their first reaction is one of near total devastation; it is a reaction that is a lot worse than it would have been in India under similar circumstances.  And understandably so: You are ten thousand miles away from home and suddenly coming to Canada does not seem like such a good idea.

Meet the very same people a few years later: They appear to have recovered from that initial ordeal. There are some who fold up their tents and head back home in sheer desperation.  Patience is a luxury for some new immigrants for whom the torture is unbearable. It is in that context there is a need to have ones own individual support group of friends and acquaintances. Sharing experiences is a good idea.

The first time you lose your job in Canada is a little like surviving a shipwreck and being marooned even though you know there is help forthcoming. Nonetheless, it is a lonely feeling.

It might be a good idea to climb out of the self-pity and get down to the grind.  It is not the end of the world; it is the beginning of the Canadian immigrant saga-a story of common occurrence.

You are not alone. That thought, in itself, should provide you the much-needed solace to cope with the loss of your first job in Canada.

Is Canada in recession still a good idea for the prospective immigrant?

Consider the following two isolated news snippets on March19, 2009:

1. A study by the Federation of Canadian Municipalities reveals that recent immigrants to Canada who are between the ages of 25 and 54 are twice as likely to have a university degree as other Canadians though four times more likely to be unemployed than other Canadians. University-trained immigrants had an unemployment rate of about 12.1 per cent. By comparison, the unemployment rate among university-trained non-immigrant Canadians was three per cent.

It is reported that the government of Canada proposes spending $68 million over five years to speed up the recognition of foreign credentials in order to get educated immigrants into the workforce faster.

2. As on the morning of March19, 2008, the Canadian dollar started to spread its wings once again, partly as a result of the falling US dollar. However, since Canada is essentially a ‘commodities- based- economy’ the refection of the marginal hike in prices of crude oil and gold is obvious. This has been confirmed by RBC Capital analyst George Davis says the Canadian dollar is showing signs of soaring upward because of the American dollar’s weakness against most other currencies and because of a spike in oil and gold prices. Gold futures contracts were up more than $66 to US$955 an ounce and crude oil futures were up $3.88 to US$52.02 a barrel in New York in early trading on March19, 2009.  Earlier in the day, the Canadian dollar briefly rose above 82 cents US for the first time since early February. Not that a strengthening Canadian dollar is good for the economy.  When the Canadian dollar rose to $1.07 U.S. at its peak there were market rumblings because Canadian exports had become cheaper. A Canadian dollar that is valued at 85 US cents is considered to be the ideal for the Canadian economy.  But let us not forget that when the Canadian dollar was the equivalent of 65 cents U.S. American enterprises rushed to Canada to set up industrial plants because it was an attractive proposition to produce in Canada. We also need to keep an eye on anything that generates jobs.

My predictions for the Canadian economy and job situation for prospective immigrants are as follows:

1. Canada’s economy will slowly improve for the remaining part of 2009, in part, due to the weakness of the American dollar and also in view of the predicted increase in the price of crude oil and gold. Provinces like Alberta may see a revival of fortunes in and around Fort McMurray such that jingle of loonies in giant vats will resound as far as Ottawa. Like the sudden, unexpected spike in the purchase of new cars in the first two months of 2009, there ought to be an increase in the number of first time buyers for housing and that will hopefully spur up the economy.

2.Many potential immigrants who recently obtained their immigrant visas to Canada- including some of who were sitting on the fence (concerned about the state of the Canadian employment market)- will now take the plunge and head for Canada.

During mid- January to the end of February 2009 I travelled to many towns and cities in central and south India. The only word I can only find to describe India is “boxed-in.” Not all the Information technology related economic progress and the 9% national growth in GDP can compensate for the disparity between the rich and the poor-and the consequent ” Slumdog Millionaire” effect that reflects India in poor light. Sooner or later money too is not going to compensate.

Taking a bold step and immigrating to Canada requires guts.That is reserved for the adventurous among us.

The Canadian experience: New immigrants to Canada

Potential immigrants to Canada tend to conjure images of the land of their dreams. I think Indian immigrants dream mostly of luxurious living and snow.   I used to dream about snow flakes wafting gently in winter, about  Christmas trees bedecked with brightly colored lights and about a lone orange beacon from the facade of a tall glassy skyscraper mirroring the setting sun. 

 

I knew that Canadians were kind and courteous and hence I conjured up images of nods and smiles in my direction with a sing- song “ Good day!” as they passed me by on sidewalks strewn with autumn leaves.

Such were my visions of Canada.

 A few months after landing in Canada the milk-white snow I had dreamed about turned to a paler shade of gray. I did see impressive skyscrapers in the downtown section of Vancouver, but they only represented offices where other people held decent jobs.

During that initial period when I was trying to secure employment I found myself married to discomfiture. And even if someone had wished me “Good Day!” I would probably have just nodded with a long face. 

In course of time, however, things changed for the better. When I  now look back to reflect on what transpired then, I would say they were teething problems. Most immigrants go through the mill. It is not a pleasant feeling, but it is certainly a good way to learn about life in Canada first -hand.

New immigrants to Canada react with discomfiture and sometimes even in defense of the system that they got away from.  They heap lavish praise on the very things they once denounced:  The crowds they brushed shoulders with now represent human warmth; the noise and the cacophony of traffic in Indian cities becomes music to their ears that they now miss; and the squalor and corruption at nearly all levels becomes a system that works- notwithstanding. 

When confronted with the harsh reality of life and unfamiliar conditions in Canada they wince and whine. But those who survive the first two to three year hiccups after landing in Canada manage to go through the motions of life with some degree of acceptance. But if the discomfiture of trying to acclimatize is unending it is time to re-orient and say to oneself “This is for the children.”

To complain about the conditions in Canada after arriving here is as natural, for a new immigrant, as a bird takes to flight. With conditions so diametrically opposite in the world they came from it comes an odd revelation that  ‘white’ now means ‘white’ and ‘right’ is right and not wrong- just to accomodate nepotism. There are queues not to break and courtesies to be adopted; and at the end of the day the system prevails. That system precludes living life without having to  board the last train to heaven.

Stress, for the Indian immigrant in Canada is different: It is mostly borne out of financial insecurity. Immigrants are often concerned that if something went terribly wrong with their finances, they would be washed away without a trace.  

However, consider a few of Canada’s plus points: It has the ninth largest economy in the world and is also considered to be the ninth best country in the world to do business in. People call Canada a welfare state; others say this is a form of Socialism. There are many good things about living in Canada and they easily outshadow the perceived negatives.

Call it what you may, the bottom line is that Canada cares for its people.  

The Canadian experience: The misnomer-East Indians

Indians usually fit into four broad categories that take after the bold type on the face of a compass: There are North Indians who hail from the northern states of India, South Indians who come from the South of India; West Indians who play jolly good cricket and finally ” East Indians” who are synonymous with curry and Information Technology. 

The two possible explanations for the term “East Indian” are 1. That  ”Indians” were named misakenly on the discovery of the Americas and hence “other Indians were named East Indian”; and 2. That the term “East Indian” has to do with the East India company set up by the British in India.

These are viable explanations, though not acceptable to Indians emigrating from Indian metros.  Many immigrants of Indian descent  do not like the tag “East Indian” and prefer to be called ”Indo-Canadian.” Immigrants who don’t like the tag ” East Indian” argue that there is only one India and therefore, why tag them “ East Indian?” Furthermore, the term somehow has managed to take on an undertone.

Educated Indian immigrants take pride in the fact that they have come a long way from the old image once portrayed. Nowadays, Indians are synonymous with technological world. They have manouvered for themselves a sixty billion dollar outsourcing industry that can send unemployment charts in the West shooting up like the mercury in the Rajasthan desert. Indians excel in Math and science related subjects and are leaders in software engineering and Information Technology. India may not stake any great claim to ingenuity in discoveries, but when it comes to mass production of engineers they are probably next only to China.

Immigrants of Indian descent who come with hopes of landing engineering jobs in Canada are the most professionally misplaced: Some of them even drive cabs in Toronto and Vancouver with credentials like ‘Ph.D.’ Many of those immigrants are returning to India out of frustration of not being able to engage in employment commensurate with their qualifications and experience.

It is an irony that some countries that have a dire need for doctors and engineers do not ratify their academic credentials and experience. There are many tens of thousands of doctors and engineers from India practising across the border in the United States. But having one’s Indian engineering qualifications ratified by a Provincial agency in Canada is exasperating.

The Canadian experience: Helping one another

One sunny afternoon, some eight years ago, I was seated on a bench outside the Vancouver Aquarium in Stanley Park- looking intently at artists making pencil sketches of stiff- necked customers when a lady with her little son- around five years of age- came and sat beside me in the vacant seat. I wished her and we struck up a conversation.

I told her I was a recent immigrant and we spoke of life in North America in general terms. The one remark that she made, that stands out till date, was that it took courage to be an immigrant. She spoke of the sacrifice involved in leaving everything behind and embarking on a journey with little or no assurances on hand. And then she spoke of a “ little help from friends.”

I was once the beneficiary of this blessing: Fortunately for me, there were people who helped when we needed it most during the first two months of our stay in Canada. Not many are that fortunate. Most South Asian will tell you “ Nobody helps.” Then ask the same person what he thinks of Punjabis helping each-and he might say: “ Very true!”

One cannot generalize, but some communities in India show a greater propensity to help new immigrants.  In my ethnic group, people show reluctance to help new immigrants. Others feel the same way about their people. This attitude could be linked to insecurity. Besides, it human nature to feel the pangs of jealousy.

During the period of the last month, a Bangladeshi Accountant and a Zambian businesswoman have testified to me of some solid disservice among recent immigrants who arrive from their countries.  The Zambian businesswoman even spoke of “ jealousy-big time” from her fellow immigrants.

But there are the helping types: There is a lady of Indian origin who always extends a helping hand to new immigrants.  In the last ten years she must have housed thirty to forty immigrant families from the Arabian Gulf for the first two months on arrival in Canada.  I am quite certain she does not accept monetary gratification, though people who she has helped must have made it up to her in small ways.

The story I tell people the most is that of my close friend who landed in Canada with two small children and a slip of paper with a hastily - scribbled address from Abu Dhabi.  It was a friend of a friend who suggested a contact.  He stayed with this gentleman and his family for the first two months on arrival in Canada.  The small basement they all squeezed into was not small for the man’s heart was large.  Needless to mention, they are friends till date.

Ask anybody who has taken the Canadian citizenship written test and he or she will tell you that one of the primary responsibilities of a Canadian citizen is to “ help each other in the community.”   

The Canadian experience: The learning process

Some immigrants do not land in Canada with a letter from their Motor Insurance Company in South Asia to the effect that they did not have any accident-related claim against them in the last five years - if that were the case. A “ No claim certificate” from your motor vehicle Insurance Company in India can save you at least twenty-five to thirty percent in insurance premiums in Canada.     

There are immigrants who regret having paid an Immigration Agent upwards of five thousand dollars for processing their application for landed immigrant status in Canada.  These amounts paid to Agents serve little else than making an application on your behalf with an attestation from an immigration lawyer- that is dispensable.

But the folly of a new immigrant is not listening to good advice merely for the reason that you categorically distrust the composite experience of others who made mistakes and learned by their experience in Canada. But then, people want to make their own mistakes.

I know of the case of someone who opened a coin laundry in Whalley soon after landing in Surrey BC.  If, perhaps, he had asked me before doing so, I would have told him: “Whalley is a neighborhood with a history of sporadic crime.” The rate of car theft in Whalley is six times more than the Canadian national average. There are businesses that succeed in Whalley, but most people would discourage new investors with one word: “ Avoid!”

But consider the possible justification for such an inadvertent misadventure: “Who could I trust?  And why be obligated to people and ask for favors and advice?” Perhaps so, but why bargain for endless worry. People don’t listen, and to make sure of that- they don’t even ask.

Then there are those little silly things that may or not be mistakes: Not attending to outstanding dental problems prior to coming to Canada, delaying applying for a credit card (a credit history is important to apply and qualify for a mortgage), buying a new car for a first car, buying new furniture and splashing money around on the pretext of setting up a home in Canada.   

By far, the biggest mistake one can make is to expect a good job in Canada based on one’s qualifications and work experience in another hemisphere. That is flawed thinking though most of us have displayed it in the initial stages as new immigrants to Canada. There is no harm in aspiring to reach high, but it is better to be pragmatic in accordance with the prevailing situation.

Nearly everyone who has a good job in Canada has studied, re-qualified or upgraded here.

The lack of basic knowledge on Canadian conditions appears to be more pronounced for Indians emigrating from the Arabian Gulf. In a sense, they are not to be blamed.  Conditions in the Gulf were exceedingly good; money was tax- free. Some of those immigrants came here with different aspirations. Others have accepted the new reality.          

The Canadian experience: A low-keyed nation

Canada comprises of around sixteen thousand islands and encompasses nearly 9.09 million square kilometers.  After Russia, it has the second largest surface area in the world.

With deposits of gold, nickel, copper and iron ore Canada is a wealthy nation. And to cap it all, Canada is the second highest producer of crude oil extracted from oil sands in the world. When the Canadian dollar appreciates against the U.S. dollar, it is because of an appreciation in the commodities market.  And yet Canada is low profile when it comes to making a display of wealth.

Since Canada has so much land area, does it matter if one tiny little island in the Arctic is relinquished?

The answer is “Yes” 

Canada will not part with an inch of its territory.  And it has been doing amusing things to establish its sovereignty over an isolated island a mere 1.3 square kilometers in size.

Hans Island to the north of Greenland (Denmark) and the south of Ellesmere Island (Canada) is a stretch of barren rock covered ice and floe. In this part of the Arctic Circle it is so cold barren and cold you might easily think you are on another planet.

Hans island attracts visitors from only two nations: Canada and Denmark. That is the problem. As of now, Hans Island is no man’s land with Canada and Denmark both staking claim to it. Denmark claims that it is a logical extension to the 1933 Act that awarded Greenland to Denmark; whereas, Canada claims it from way back when Eskimos traversed the area from the North of Greenland across the five- kilometer stretch of water to Ellesmere Island. The real story is that someone forgot to designate Hans Island when the five- kilometer stretch of off shore limits were being drawn up.

Some years ago Canada decided take firm action: It dispatched a battleship (one of a fleet you can count on the fingers of one hand) to Hans Island. The Commander of the ship went ashore and promptly planted a Canadian flag and a bottle of whisky. The latter was largely a symbolic gesture.

However, in a subsequent visit, it was discovered that the flag and whisky were gone.  In place, there was a Danish flag and a bottle of extra strong Danish Aquavit alcohol- the kind that would do some harm to the inner lining of the stomach and leave a mark on the head.

These small Mickey Mouse ploys have kept the feud alive and promises to present protracted sessions of pea- throwing.   But that is so much like Canada.  There is no threat of violent confrontation, no flamboyant display and use of military power (the total number of armored tanks in the Canadian army are not even equal to the number of tanks in the Army workshop at Deolali cantonment in Nasik Road) and at worst there will be a heated debate in the House of Commons and much fuel for satires programs on T.V. thereafter.  

The Canadian experience: Weather talk

There are two things Canadian can talk about at short notice:the weather and Ice Hockey. I like hockey too, though I prefer field hockey- a relatively more docile version.

But the weather as riveting subject in a conversation was unfamiliar to me.

If you were to experience 10 inches of rain in 48 hours in India you might overhear Savithri Kulkarni grumble: “ Aayee gha…Aaz kitie paaoos aahae!” or  Selvam abruptly jerking off the beads of water from his face and head while closing an inverted umbrella and complaining  “ Ennaa maa…yaevlo malae!”

But who talks about the weather-as if it were the only topic? Sometimes, I think Canadians do.

When I first came, I used to plod on in Indian fashion about all and sundry subjects.  After a while, I realized that I was disclosing more than the listener needed to know and that all he said was “Oh yeah! Oh yeah!”

That’s when I too started talking vaguely about the weather. But this weather thing always befuddled me.

So I asked a Punjabi friend of mine why it was so. “Why do Canadians lay so much emphasis on the weather?”  I asked.

To that, he replied: “ Arrae, yaar, weather mae kissi kaa laenaa daenaa nahin hai!”(There is nothing to lose or gain in talking about the weather!)

But, in a dreary place like Vancouver where the sun plays more hide- even if one seeks, it makes sense to look forward to a bright weekend.  

Then there is a sheet of thin ice you don’t want to walk on. You don’t ask a Caucasian Canadian questions about his family. That is taboo. It is painful to bring up memories of the family that once was.  There are far to many people in North America who are divorced. 

However, consider what East Indians almost invariably ask you. They want to or would very much like to know what is your hourly wage.  That is their hallmark.  That way, they place you on a scale.  For example, he as a Matriculation degree holder earning sixteen dollars and hour beheading chickens whereas you-with your double Masters degree- earn half that amount at the cash till of a convenience store! 

We have so much to learn from Canadians.

We in India like to talk about our achievements at large. We like to impress.  We even throw in a generous dose of our family achievements.  Tell it a Canadian and you will hear a polite “ Good for you!”  That remark is often made in a sing- song manner with the neck slanting to one side and a slight elevation of one eyebrow. If the good news you have announced is very good you might have to watch for other signs to assess the genuineness. But we all human: We don’t particularly rejoice when we hear good news as related by others.

But the crux of the matter is:  Why talk more than necessary?  Much rather you get the other person to talk.

And talk, he or she will- about the weather!

Canadians also talk about Indian food. That’s when you hear frequent mention of the word “ Awesome!”  The net result is that you are going to actually offer him a sample of your fare or even so much as invite him home for a hearty East Indian meal.

Gosh!  These people love East Indian food.  They love any food. But when Prince Philip blurted: “English women can’t cook!” he came in for flak. When East Indians lament about not being invited in return for dinner by Caucasian Canadians they ought to give Caucasians a margin- if only for the possibility that Prince Philip was right.

Canadians think that the samosa is an Indian national symbol. Considering the Canadian national symbol is the rodent- like beaver it is not surprising they hold the samosa in such high esteem.  If they had perhaps justifiably chosen the maple leaf as the national symbol one might have expected to choose from something more elaborate like “Kashmiri Murgh Makkhani or Andhra biryani” to tickle the culinary buds.  Instead one might go on praising the butter chicken they relished at Bhupinder’s wedding.( Incidentally, the same white Canadians were on the verge of thanking Bhupinder’s parents at the reception and making an exit after the short snacks – at which stage they were reminded that dinner was yet to be served!)

That is how they learned about butter chicken!

Then there are expressions that quiz me. Ask a Canadian something he does not know the answer to and he will reply: “ Yeah…Now that is a good question!” At first, it used to make me feel proud to have asked.  Not any longer.

But the everlasting winner is the North American expression: “ Whatever…!”

It is usually the culmination of frustration and corresponding of refrain.  It could mean summarily discarding a topic of conversation or “ I have nothing further to add!”

    

The Canadian experience: The Resume

Most immigrants who land here prefer to start looking for jobs within the first week itself. Without a job, your meter is ticking away from your savings-which in some cases might not be very much if you are from India.

I can testify to that. In the initial period, every time we spent a dollar we would think “ That’s Rupees Thirty- one into so many dollars gone.” It is quite taxing in the initial few months to spend Indian money for Canadian goods and services. But when one gets a job and sees one’s first paycheck, things improve or, at least, matters are alleviated.

The name of the game in Canada in the initial period is: “ Get any job, to pay the bills.”

If you are going to worry about what people will think and become choosy with jobs then you may have to wait longer.  There are immigrants to do get the kind of jobs they are cut out for, but those are far and few unless you have the skills a profession like that of a software engineer that you can cash in on immediately.

Don’t worry about telling your folks back home what you are really doing.  In any case they are not likely to understand the situation here. This is the Canadian context and all that you do is relevant to that. Sometimes, employers try you by telling you that you are overqualified or that you lack Canadian experience.  I heard of someone who actually replied to that remark with candor. “ How can I get Canadian experience if you don’t give a chance to get it?”

That was a decade ago and more.  Nowadays, you send out your Resume at 10am and by the time you go back home there are two messages from prospective employers on your answering machine. 

However, the bright outlook now prevailing in the employment market may not last forever, hence it is a good idea to follow some elementary guidelines.

Try and fit in all your skills, job experience and qualifications on a single A-4 size sheet of paper.  It is easy to fax and in any case chances are if there are more applicants the first glance from a prospective employer will not be for more than twenty seconds.

If you register at the Human Resources Job Bank in your neighborhood they will show you how to make a North American type ‘Resume.” I prefer the format that reads: Objective, Skills, Job Experience, Educational Qualifications and one last line that states: References available on request.

Dress modestly for an interview (a suit is not really necessary, unless you are applying for some job that requires that sort of daily attire) and speak only that much as required.  A good idea in the interview is to display the type of quick reflexes and body movement that suggest that you are good at multi-tasking.  I have my own theory. The employer is hiring you for your physical ability rather than for your brain. Hence don’t fantasize that your managerial use in India is going to be of much use.

However if you were a mechanic in India, the current job is merely and extension of what you did in the past.

Note: You might have immigrated here after giving up a good supervisory or Managerial job in India and no matter what, you will somehow always be tempted to compare your current assignment the job your juniors did back home.