Re:How Indian Americans Came to Run Half of All U.S. Motels
by AdamM12 on Wednesday September 05, 2018 @04:08PM
(#17921464)
Worked in restaurant industry. Latino workers had a pool of money that the all put into and if I remember correctly they rotated who the paid it out to for big purchases like this. I think they mainly used it for like cars and homes.
Re:How Indian Americans Came to Run Half of All U.S. Motels
by ofcrpls on Wednesday September 05, 2018 @05:05PM
(#17921922)
These are called https://en.wikipedia.org/wiki/Chit_fund. Pretty common in countries where access to the formal banking sector, especially for women who are home-makers, is complicated.
Re:How Indian Americans Came to Run Half of All U.S. Motels
by AdamM12 on Wednesday September 05, 2018 @08:49PM
(#17923128)
Awesome didn't know what the formal name was.
Re:How Indian Americans Came to Run Half of All U.S. Motels
by learc83 on Wednesday September 05, 2018 @04:26PM
(#17921615)
I had an ex-girlfriend whose family did this. I had no idea it was a cultural thing (she was from Mexico). I just just thought it was specific to her family. If I remember correctly though, it caused a far amount of problems because people would often stop paying after their turn.
Re:How Indian Americans Came to Run Half of All U.S. Motels
by AdamM12 on Wednesday September 05, 2018 @08:52PM
(#17923135)
Yeah I can imagine. Really has to be close nit so you can put social pressures.
Re:How Indian Americans Came to Run Half of All U.S. Motels
by najarvg on Wednesday September 05, 2018 @05:10PM
(#17921956)
Excellent observation! This is the basis of "chit funds" (https://en.wikipedia.org/wiki/Chit_fund), an alternate form of circular financing in India. Similar schemes also apparently exist in countries like S Korea per my Korean neighbor. But in the motel instances outlined here, anecdotally, lending circles are not used. It's typically a small group of family members or very close friends with a pool of money to "lend".
Some Asian immigrant families form a "lending circle" where they choose a member to go 1st, and everyone gives their extra money to that person, and they buy a hotel/restaurant/etc. The circle chooses a 2nd, and everyone gives them spare money - it's a lot faster this time, with the one hotel/restaurant/etc owner paying in a relatively large amount. This goes around until everyone in the group (maybe 12-20 people) has a hotel/restaurant/etc.