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How Indian Americans Came to Run Half of All U.S. Motels

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Re: How Indian Americans Came to Run Half of All U.S. Motels

#111

Earlier quoted context omitted.

I never connected the decline of extended families to the church, but that sounds fascinating. Any recommended reading?

It's because it's not. Literally all the cultures in which Catholicism thrives are those in which the extended family is paramount. My very large very Catholic very Indian family actively rails against the individualism of secular American culture. As do my Philipino friends who also have very close families. As do my Hispanic family and friends who also have very close families. As do my African friends who also hav…

I'll stop now, but my church claim was only that the medieval church had a hand in changing the culture, in places which are now mostly protestant or atheist. The places which the post-reformation catholic church has thrived are indeed pretty different.

Re: How Indian Americans Came to Run Half of All U.S. Motels

#112
Gujarati here. Our success in Motel and Gas Station industry can be attributed to the following. The same model then also can be seen in tech industry. I have explained below :

"Ability to establish trust while bypassing all the conventional channels."

Coming from a socialist country like India to USA I noticed that transaction costs in USA are damn too low simply because of the trust factor. There is no two factor auth each time you do a credit card transaction, you can do self checkouts at Walmart etc. etc. Many of first world citizens might take this for granted but these factors give a huge boost to economy. There are more transactions and less wealth is destroyed just to enforce a contract.

We Gujjus take this to the next level in USA. Consider John Smith decides to run a gas station. He has to appoint a 24x7 attendant at say $10 per hour. So he has to spend $240 per day just for the person. Assuming the profit margin per gallon is $0.15 he needs to see around 100 cars filling 16 gallons before that cost can be earned back. Not to mention these attendants steal cash and other stuff from the gas station store often too. John Smith then hires Jose who is an illegal Mexican at $5 per hour. Jose steals his cash one day and is never seen again or is caught by ICE and deported. Or John Smith sticks to the law and bleeds $240 per day.

Now Dhirubhai Patel buys the same gas station. He makes a phone call and finds another Gujju student who is currently on F1 and legally can not earn and is paying heavy rent in bay area. He agrees to man his gas station at night and sleep in there too. He saves on rent and takes literally no salary until he completes his masters. Dhirubhai saves Around $100 more on this. Also the gujju students is much less prone to stealing and cheating and on other hand is more thankful to Dhirubhai. After completing his masters this kid joins a reputed tech company and later employs Dhirubhai's daughter as an intern. Everyone wins.

I see a lot of hate for Indian tech workers among white nativists tech workers on apps like Team Blind and also on twitter (search for HR392 on twitter). They correctly point out that Indians have been succeeding at a much greater rate than natives. They claim that Indian managers tend to hire Indian employees even in top firms like Google etc.

That might be true as Indians quickly build trust among each other. It is common for a new H1B from India to work for a startup at least for 2-3 years just because founders helped him come to USA even though salary is lower (I did this). Both my founders were Indians and the company was successfully acquired. I left within 6 months of acquisition to join one of the FANGs.

Note: I think the lack of proper deterministic path to green card actually forces smaller ethnic groups to huddle together instead of being more individualistic. This in some way prevents assimilation. There are over 200K tech H1Bs who are here for decade or more and yet wont get their green cards. A lot of them would feel safer in companies where their manager is Indian, CEO is Indian etc. than a general white owned company and might be willing to work for less for the safety of job and presence in USA. Same goes for motels, farming, gas stations and many other businesses which are being completely cornered by Indian-Americans.

Re: How Indian Americans Came to Run Half of All U.S. Motels

#113

The story totally checks out. I moved from Boston to San Francisco in 2006, did a cross country drive. Back then we only had flip phone, so I would use my laptop and The Microsoft Streets software with a GPS. Every day, around 3 PM, I would pull in into the parking lot and locate a Motel 30 or 40 miles ahead using the GPS and Streets software, and call and book a room. 8 out of 11 motels I stayed in were owned and ru…

I stayed at a very good Gujju run one in Ukiah last summer, maybe the same family?

Re: How Indian Americans Came to Run Half of All U.S. Motels

#114

Gujarati here. Our success in Motel and Gas Station industry can be attributed to the following. The same model then also can be seen in tech industry. I have explained below : "Ability to establish trust while bypassing all the conventional channels." Coming from a socialist country like India to USA I noticed that transaction costs in USA are damn too low simply because of the trust factor. There is no two factor a…

Just to clear any confusion I am not saying the success comes at the expense of breaking the law. In some cases it is true but at fundamental level it is about "establishing trust". You can break a lot of victim-less laws and get away with it when you can establish trust. Most often these are minimum wage laws and immigration laws (both of which in my opinion some of the worst laws in the world).

Re: How Indian Americans Came to Run Half of All U.S. Motels

#115

This model has led to success for other immigrant groups in other industries. > Many followed his advice. “They would give each other handshake loans—no collateral, no payment schedule, just pay when you can,” Doshi explains. Once a family purchased a motel, they would live there, and the family members would do all the tasks needed to run it, from cleaning rooms to checking in guests. That helped keep costs down, an…

Family members are pretty much exempt from labor laws. Hence the cost structure can be a lot lower by using family labor.

Re: How Indian Americans Came to Run Half of All U.S. Motels

#116

This model has led to success for other immigrant groups in other industries. > Many followed his advice. “They would give each other handshake loans—no collateral, no payment schedule, just pay when you can,” Doshi explains. Once a family purchased a motel, they would live there, and the family members would do all the tasks needed to run it, from cleaning rooms to checking in guests. That helped keep costs down, an…

Really? The killer app here seems to be access to capital on amazing terms. > They would give each other handshake loans—no collateral, no payment schedule, just pay when you can

The original blockchain:

https://en.wikipedia.org/wiki/Hawala

Very difficult to trace and crack by authorities.

Re: How Indian Americans Came to Run Half of All U.S. Motels

#117
post #28

This model has led to success for other immigrant groups in other industries. > Many followed his advice. “They would give each other handshake loans—no collateral, no payment schedule, just pay when you can,” Doshi explains. Once a family purchased a motel, they would live there, and the family members would do all the tasks needed to run it, from cleaning rooms to checking in guests. That helped keep costs down, an…

It's not (just) that most Americans feel these jobs aren't worth their time. There is a very strong individualist streak in American culture and a very strong taboo against lending friends or family members money for any reason. There are plenty of American families who have relations who could easily help bootstrap a profitable small business in the way described here. It just doesn't happen that way very often. Ins…

I believe Gates started Microsoft with a $5000 loan from his parents. Not that "immense".

Re: How Indian Americans Came to Run Half of All U.S. Motels

#118
post #28

Earlier quoted context omitted.

It's not (just) that most Americans feel these jobs aren't worth their time. There is a very strong individualist streak in American culture and a very strong taboo against lending friends or family members money for any reason. There are plenty of American families who have relations who could easily help bootstrap a profitable small business in the way described here. It just doesn't happen that way very often. Ins…

I believe Gates started Microsoft with a $5000 loan from his parents. Not that "immense".

$23,420.63 in todays dollars. [http://www.in2013dollars.com/1975-dollars-in-2018?amount=500...]

Re: How Indian Americans Came to Run Half of All U.S. Motels

#119

Earlier quoted context omitted.

I never connected the decline of extended families to the church, but that sounds fascinating. Any recommended reading?

It's because it's not. Literally all the cultures in which Catholicism thrives are those in which the extended family is paramount. My very large very Catholic very Indian family actively rails against the individualism of secular American culture. As do my Philipino friends who also have very close families. As do my Hispanic family and friends who also have very close families. As do my African friends who also hav…

The dogma of Catholicism did not destroy the clan structure in Europe, though it was certainly used by those who did. It was the humans running the church, who had particular political objectives relevant to the time and place which are not necessarily anything like the political objectives of the people involved with the church these days.

No one here is making the argument that Catholicism cannot exist alongside close extended families, so your objection to the argument that is being made falls completely flat.

Re: How Indian Americans Came to Run Half of All U.S. Motels

#120

I am from gujarat, do not own any motel. In my experience I can definitely believe this to be true. Personally know so many people heho owns motels. I am shocked about the 50% though!

I think its more than 50%.

My new owner origination had about 16 owners/managers. 8 owners were Indian/Gujarati, 1 owner was from Pakistan, 1 white owner and rest were managers.

I went to my first franchise conference and almost 70+% of the US owners were Indian/Gujarati.

I got 2 greeting cards from the franchise in 1 year. 1 was for Diwali/Gujarati New year and 1 in December for the new year.

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