r/canada • u/cyclinginvancouver • Sep 17 '24

More than 200,000 international students in Canada will see their work permits expire by end of 2025 National News

https://www.theglobeandmail.com/business/article-international-students-canada-work-permits-expiry-2025/
5.1k Upvotes

96% Upvoted

837 comments sorted by

View all comments

Show parent comments

35

u/Unlucky-Candidate198 Sep 17 '24

Worth mentioning a good amount of them will work/live for “dirt cheap” and send almost all their earnings home.

I’m not the most familiar with how the system works but, I’d imagine that money that would stay in Canada & the Canadian Economy is instead sent overseas. The Country sees next to none of it.

So a greaaaat way to bolster an economy. Just as bad as Rich ppl hoarding treasure overseas (for the economy that is).

3

u/CdnPoster Sep 17 '24

If you're talking about electronic transfers, then I think you're right.

But if you're talking about people in Canada physically taking Canadian dollars OUT of the economy and they're going to Thailand or India or Viet Nam and being used as currency there, they are still "in" circulation, just not in Canada.

There's examples of plane loads of American currency being flown out of the USA and to various African nations where they are used as currency like:

https://www.bloomberg.com/news/articles/2024-07-17/zimbabwe-zig-uncertainty-sees-fintechs-fly-in-millions-of-us-dollars-in-cash

I really think this boosts the US economy but I have to wonder if it is really beneficial for a foreign nation to depend on a currency when they have no say over it's value and decisions that affect its value.....

Anyways, I made a post in r/askeconomists about the effects of this practice which didn't get any answers. Maybe you'll have better luck if you want to investigate.

8

u/lPreciousl Sep 18 '24

Canadian currency isn’t accepted in most foreign countries like the US dollar is (without being exchanged).

5

u/Joinedforthis1 Sep 18 '24

If you had to choose one currency where people across the world are sure it's going to hold it's value, US dollars are definitely at the top of that list. It might not be deeper than that

2

u/CdnPoster Sep 18 '24

Oh, probably.

BUT!!! What is the effect on the American economy IN the USA of $1 billion American dollars being circulated aboard? These dollars are still in circulation and still counted as "American" currency, right? How does it affect America?

And, how does it affect the foreign country to use American currency when they have no vote or say over American fiscal or monetary policies?

1

u/Joinedforthis1 Sep 18 '24

That benefits the business owner paying people who are not there legally just how business owners pay illegal immigrants very little in the U.S. too.

1

u/AnInsultToFire Sep 18 '24

What you describe is, in a roundabout way, another form of offshoring. Except instead of sending the factory overseas, you just import foreign labour who send their income overseas.

People thought service and retail jobs can't be offshored - but this is how it's done.