Consumers forgo finer things as slump hits home

"CONSUMERS are already cutting back sharply on their spending and have turned away from high-priced luxury items as fear grows that Australia faces a deep and sustained economic downturn."

The economy needs to be based on primary and secondary industry in slower economic times. People will have less disposable income and will use their income to drive their life. They will cut back on luxury items and service industries will deplete. It'll be interesting because we have a lot of people who haven't experienced tough economic times and they are probably going to look upon it as deprivation. Things will have to be practical and functional and people will start looking for things which will last. That ought to be interesting in today's throw away economy.

Consumers forgo finer things as slump hits home | theage.com.au

Mr. Bush wants us to recommit.

Image via Wikipedia"As we focus on responses to our short-term challenges, our nations must also recommit to the fundamentals of long-term economic growth - free markets, free enterprise and free trade," Mr Bush said.

I don't think so. Judging by the article, no one else thinks so either. We need an international response and the best financial brains in the world to work this lot out. I should like to think we have sufficient brainpower on the planet to haul us out of this but it will take a complete commitment to international co operation to build some solid , global financial foundations so going down the old road is out of the question.