The Royal Bank Foreign Worker Project Goes Too Far

There is a story creating some concern in Canada, about our biggest bank, the Royal Bank of Canada, hiring foreign workers to replace Canadian workers.  All by itself, this would not be enough to cause outrage, as we have been doing this for years. But now there is a combination of circumstances that could make this "the straw that broke the camel's back".

- Canadians are aware that good jobs have been shipped overseas for many years: Computer jobs, phone answering jobs, manufacturing jobs. I don't know how many jobs have gone overseas, but I am aware of many local industries and offices that have simply closed down.  I think it is widespread enough to harm our economy, if not now, sometime in the future.  We know jobs pay a lot lower wages overseas than in Canada, and I guess we understand why.

- Canadians may not be aware that many jobs even in Canada are filled by foreign workers on temporary visas.  Over 100,000 in 2001 growing to over 300,000 in 2012.  It used to make sense, because these are mostly jobs we don't care for such as fruit picking.  They are supposed to pay Canadian wages, though really it's not, because Canadians apparently cannot afford to work for those wages any more.

- There are also high tech jobs, or skilled jobs that not enough Canadians are trained for.  I personally know at least one person who was recruited overseas to work in Canada in such a job.  I think there is a need for a limited amount of this type of recruiting.  These jobs are also supposed to pay Canadian wages.

But this is just too much: Unskilled foreign workers on temporary visas, replacing Canadian workers, at a lower salary, in Canada, recruited to do a job that some Canadians have invested their own time and money at University and college to qualify for.  I don't care if it's a mistake, or a loophole, or an accident, or any other excuse. If this continues, even the CEO's job may be outsourced.  After all, it would improve the corporation profits by $10,000,000 per year (the CEO salary, minus whatever we have to pay the replacement on a temporary CEO work visa).  The resulting executive decisions couldn't be any more short sighted.

I am somewhat at fault myself, as a shareholder in the Royal Bank.  And so the only decent thing to do is begin divesting shares in favour of some company that does not outsource its jobs, if there are any left.

Already, we have a case in Canada going before the court, where Chinese temporary workers were hired by a Chinese mining company to work in a mine in Canada.  Once again, it was a combination of circumstances.  As I understand it, the Chinese company bought mining rights in Canada.  The Canadian government assumed that there would be jobs for Canadians in the deal.  The Chinese company put out help wanted ads, but no Canadian miners qualified, so they were forced to bring in Chinese workers on "temporary" work visas.  Is appears that one of the requirements listed for the job was fluency in speaking Mandarin.

I looked up some of the facts in the Globe and Mail article here:

http://www.theglobeandmail.com/report-on-business/economy/jobs/ottawa-pushes-for-answers-as-uproar-over-rbc-outsourcing-gains-volume/article10870961/

Picture: From a foreign worker application support website
http://www.routleylaw.com/immigration-legal-services-overview/

The Book "Your Money or Your Life" is now Twenty Years Old

"Twenty years after publication of "Your Money or Your Life" by Vicki Robin and Joe Dominguez, it is featured as one of USA Weekend’s 5 Personal Finance Books for 2012 you can bank on."

I read the book "Your Money or Your Life" about twenty years ago when it first came out. It might have transformed my life, if it did not restate a lot of ideas that I already believed in or gave instructions on how to do things I was already doing. I figure there are really not that many different ways to get control of your financial affairs, so it makes sense that the book's basic methods were very similar to mine.

But there was one significant area that my ideas differed from the book. As I recall, the original edition of the book advised against using a computer to track your expenses. The authors seemed to think that using a computer would be a distraction, and instead they gave detailed instructions as to how to track finances with a manual paper system. But I had started developing my own system, which was very similar to theirs (remember there are only so many ways to accurately keep track of expenses) and I had converted my system over to a computer about six years before I read the book.

Now, twenty years later, one of the authors seems to have softened the anti-computer stance, saying a computer "may be useful" but

"A computer is not essential as both authors achieved Financial Independence without using computers."

In my opinion, people who enjoy using spreadsheets, or can write basic programs, or at least have a spouse who likes programming or using computers, will do better using a computer. I'm not the only one who likes writing programs that serve some good use - and achieving financial independence is one of the all-time best uses of a computer in my opinion.

The problem with using a computer to achieve financial independence, is that you must have a clear idea of what the computer can do and must do to help you, and the computer must not get in your way by either requiring you to do all the work, or making you do extra meaningless work, and in the end not providing the results you really need.

For example, if you check the Internet for home financial spreadsheet templates, you will find that most of them are "budget setting" spreadsheets. You input your monthly total expenses for each category, and the spreadsheet will compare the totals against pre-set budget limits, and highlight the ones you have gone over budget, and calculate what percent you have gone over budget. While this idea may actually appeal to you, I would point out that the computer leaves you to do all the hard work on your own: namely inputting the monthly totals per category of expense. The only benefit the computer provides is telling you how far over or under you are compared to your budget - which is basically a pointless exercise because (a) you set those budget items arbitrarily in the first place (b) you are wasting a lot of time doing something you don't need to do, and (c) provides no real extra insight in your financial affairs.

The remaining spreadsheet templates are of the "Checkbook balancing" variety, where you input all your bank transactions and checks, and the spreadsheet helps you see if any checks have not yet been cashed, or if any checks have been cashed that you didn't write. In this age of instant withdrawal debit cards, I don't see much use in writing checks let alone balancing them.

Here is what I see as the basic requirements of an expense tracking system. The computer must download your bank statements (or credit card accounts) into a series of similarly formatted worksheets. With today's technology. the computer must leave you the task of going through the transactions to identify a category you want each transaction to be included in. (forty years from now, the computer may have enough intelligence to do this for you, or at least to argue intelligently with you about which categories should be assigned, but this is not possible today). Then, once you have had a chance to adjust the data as it suits you, the computer can take care of the job of summarizing the whole thing on a final year-end summary. The final summary is best presented in a classical spreadsheet format: one column for each month, a row for each category. This is fundamentally what needs to happen in an expense tracking system, no more and no less. Any other functions would only be needed for for ease of setup, ease of making ongoing changes, tracking errors, backing things up etc.

In the nearly forty years of tracking expenses, I have progressed from adding things in my head, to electronic calculator, to using a computer and writing my own programs to handle these functions. My latest version consists of some spreadsheet templates in "LibreCalc" the free spreadsheet program in the free operating system of Ubuntu 11.10. And I have written three Libre-BASIC macros that I will put on the Internet as open source, in keeping with the spirit of Linux. Who knows, maybe one day someone will enhance these programs, make them even better, (for example by importing from banks other than CIBC or TD) and I can in turn benefit from their work.

The files are here:
http://www.microverse.on.ca/cd175/Readme.txt
http://www.microverse.on.ca/cd175/LoonieLogger_Sum.bas
http://www.microverse.on.ca/cd175/LoonieLogger_Import.bas
http://www.microverse.on.ca/cd175/LoonieLogger_Details.bas
http://www.microverse.on.ca/cd175/LoonieEmptyTestFile.ods

Here are some quotes from a quick summary of the book "Your Money or Your Life" from the official website

http://ymoyl.wordpress.com/summary-of-your-money-or-your-life/

"B: Keep track of every cent that comes into or out of your life.

So far we have established that money equals life energy, and we have learned to compute just how many hours of life energy we exchange for each dollar. Now we need to become conscious of the movement of that form of energy called money in every moment of our lives — we need to keep track of our income by keeping a Daily Money Log.


How:

Devise a record-keeping system that works for you (such as a pocket sized memo book). Record daily expenditures accurately. Record all income.

Step 3: Where Is It All Going? (The Monthly Tabulation)

Don’t worry. Relax. This program is not about budgeting. Budgets, like diets, don’t work. They don’t work because they deal with the symptoms and not the cause. The cause of fat is not really the calories in the food, its the desires in our mind.

Every month create a table of all income and all expenses within categories generated by your own unique spending pattern.

How:

Simple arithmetic. A computer home accounting program may be useful.

(A computer is not essential as both authors achieved Financial Independence without using computers.) "

A link to a review of this book as a life changing event
http://www.passionsaving.com/your-money-or-your-life.html

Picture: from this blog http://blog.icysedgwick.com/2011/07/friday-flash-your-money-or-your-life.html
"The highwayman in the image that accompanies this flash is the dashing David Marshall, tour guide with Alone in the Dark Entertainment. They're about to start running a new ghost walk around Washington in the north east of England"

Some Ideas on Ethical Investing

Ethical investing for some people is an oxymoron, but not for me.

Years ago I saw an article in a financial section of a newspaper that argued the only way to invest money profitably was amorally (without regard to ethics), and then suggested if you wanted to ease your conscience, give some of your gains to charity. My feeling is that this argument mindless nonsense. First there is no guarantee that investing in something unethical is going to make money, any more than investing ethically will lose money. If we could predict the future that way, we might all be rich and evil. (Can it actually be true that all rich people are evil?) Let's take an example of a classical "bad boy" investment, tobacco companies. You invest in a tobacco company, then make a lot of money (the basic assumption of investing in evil), and take part of that money to give to anti-tobacco charities. Now your conscience is clear, I suppose, as you attempt to shoot yourself in the financial foot. Sorry, this is just a ridiculous situation to illustrate the contradictions of the "evil investing/nice charity" school of thought.

But to address the fears of new investors, who are somewhat idealistic in their ethics. Often their concerns go far beyond avoiding tobacco, alcohol and armaments industries. They seem to challenge the entire idea of any company being truly ethical. How would you know, for example that a wind turbine investment isn't hiring slave child labour in China to make blades for the turbines? How do you know they aren't killing bats with the blades as they spin in the wind? How can you be sure that they aren't cheating on their taxes? Well, seriously I don't know, and really I cannot account for every single act of every employee of any company.

Ethical investing comes down to this important question. Do you believe that there is any good anywhere in our entire economic system? For people who deny there is any good in the economic system, are you doing that as just a rationalisation because you want to convince yourself that investing unethically is OK? Because I don't agree.

When it comes to making investment, there are varying degrees of buying into a certain industry. For example buying shares in an armaments company could make you money in times of war, but lose money in times of peace. Thus you are basically betting on, and profiting from human misery. But if you buy a bond with an armaments company, you do not make any more or less money during a war, and so are profiting less from human misery. And there is even a way to bet on peace, by "shorting" the armaments company stock, you make money when the war profiteers lose, and vice versa. That almost makes it the opposite of an unethical investment doesn't it? Meaning it could be way to profit from peace.

There are far worse ways to invest money than looking for ethical investment. For example, the popular method of investing in any "hot" stock, meaning a stock that has recently had a sudden price increase. Usually these investors chase the hot stocks and buy with the intent to protect their investment by selling if it drops a certain amount. This is a recipe for losing money. (Buy high sell low) Not always of course, but stock chasers do have a dismal record on the average.

It is generally a more profitable strategy to think ahead about how world needs to go in the future, given what we know about population increases, limited oil supplies, environmental degradation etc. Choose a stock that is going to help answer those problems in the long term, and stick with it through highs and lows. I don't see any worse financial return with this strategy than in chasing hot investments to make a quick buck.