I have lived through 2 recessions, or at least the ones I can remember as a child growing up in Malaysia. One in the early 80’s and one in 1997. This current one will be my third. Unlike many who seem to be in denial of our current capital “R” situation (you can call it a “credit crunch”, the “great repression” or whatever suits you), I think I am like many Americans who are “realistic”. We do not need our president or the government to tell us if the economy is “fundamentally” strong. We know we are in recession when neighbors, friends and even families no longer have homes and jobs. We KNOW we are in trouble, when our life savings have diminished. Even luxury spending is slowing. The September article, VOL 158, NO.4 titled “Luxe in Flux” of FORTUNE magazine stressed that the $270 billion luxury business is not so recession-proof after all!
My first experience of a recession was when I was 6 years old in the early 80’s. All I remember was my family going bankrupt and having to shut down their retail business. I barely remember my dad selling my sister’s piano and both my father and mother working hard all the time.
But when the Asian Economic Crisis (IMF Crisis) hit in 1997, I was much older. And I remember clearly. I was a freshman, and had just moved to the U.S. The crisis started with the financial collapse of the Thai Baht (Thai currency). Thailand went bankrupt within weeks. Then neighboring countries were chipping in, trying to fend the ASEAN economy. The next thing you know, the entire economy of Asia was in deep recession.
My frustration then was not so much about being broke and stranded in a foreign country, but that NONE of my American friends or professors were even aware about this crisis let alone about the social repercussion of this crisis – violent civil wars in Indonesia. (Which I will not get into as it was too depressing.) On a personal level, I just didn‘t know how to tell my “friends” why I couldn’t hang out, that I could not attend school trips, or eat out. I was busy working 4 jobs and attending school fulltime; data entry, 2 teaching assistant gigs and full time as a designer in an architecture firm. My money went straight to tuition and rent. I barely ate. Ramen was my savior. I slept 4 hours per day for 4 years straight. My college administration showed the same ignorance as “my friends” did. When they threatened to take away my scholarships, I almost died. Administration argued I was taking too long to graduate!! I begged, cried and petitioned to have them continue my scholarships.
Of course, when a crisis hits a person or business, most would recommend asking friends or family for support, or better yet, get a loan! Even Donny Deutch from the BIG IDEA gave similar advice to entrepreneurs facing bankruptcy during his recent show. Ask for family or friends for money OR establish a good relationship with your banker, or go to your community bank.
But what if none of these ideas were an option? Back then, student loans for international students were non-existent. How was it possible for me to ask friends for money when I barely knew anyone here? How can I ask for family or friends support when all of Southeast Asia market crashed? With their currency worth so little, the exchange rate to the U.S. would be horrendous. They would have to pay 4 times more to let me stay in the U.S., to attend a private school. My problems seemed miniscule when back home families were losing homes and jumping off buildings due to the loss of 30 years of hard earned savings.
To me, getting my degree at some fancy private art school almost didn’t matter anymore compared to the survivals of these families. I had 2 easy choices; to return home, or to stay in the U.S. and fend myself. I chose to stay, as I truly believed in the American Dream then…and NOW.
At times like this, egos should not come in the way of survival. “Survive today, live tomorrow”, a mantra I came up with during my early days in the U.S. My dreams may have been shaken, but don’t take me as a negative person. I have learned so much from my hardships. I am sure many fellow Americans are going through the same ordeal with this latest U.S. crisis. Many will have to rethink their lifestyles and tighten up their purse strings. Others will have to sell off their luxury. I have learnt that the route getting to my destination may NOT be the one I like best, but it will buy me another day for my come back. Working hard may not be the only method to success I realized, but I have also learnt to work smarter. I am sure some of us have grand parents who had survived the Great Depression or WWII. I remember my godmother used to share stories of her hiding out during the Japanese invasion in Malaysia and how her family learnt new tricks smuggling potatoes to feed themselves and the neighbors. Like the old saying goes, “When there’s a will, there’s always a way.”
As creatives, we are drawn to the field of design because we want to be part of something big, to make an impact; to contribute to the betterment of the human experience. But we also have to understand global politics, sciences and markets, human-interaction and social developments. How are we to achieve all that as designers when we cannot even admit that our neighbor’s problem is also OUR problem? And that our own greed can cause pain on others. How can we ignore the importance of world partnership?
BACE blog was started with ONE main goal, to aspire to a help forum and assist other designers and small business owners. We have had many criticisms from friends and peers alike for sharing too much information on “trade” knowledge to strangers. But understand this. My husband and I believe that knowledge is meant to be shared. There is no recession proofing a person’s dream. But there are ways to gain and share knowledge so that we are all better equipped with our decision-making.
Note: I have several recommendations. As an avid CNN watcher, Fareed Zakaria of CNN/GPS has the most interesting views on global politics and finance. Read the NY Times, Businessweek and Newsweek. The Dragon’s Den on BBC channel gives a great understanding on small business and truth on investing. By understanding how China changes it trade policies or how India expands it’s education systems or Japan importing luxury goods from Italy, you will begin to see how every bit of that, DO affect your daily life! We are all connected.
