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

Expensive Christmas

Image via WikipediaThey appear the believe prices will rise at Christmas and thereby make us shell out more money all because the profit margins are down. No matter what happens it will be all our fault and the bottom line is we pay. I don't think so. Christmas isn't about money. You can choose to make it that way and that is generally why people lose interest in Christmas. They believe it is just a big spendfest. Well, it's not like that at all. Our family has always celebrated Christmas in the spirit of giving and the original goodwill to all men. Last year was a real test of that and we came through. This year will be no different because we have a guest who needs a bit of care and nurturing over Christmas. The presents will fall into line and when money is tight or things are expensive it means you need to think and plan. Half the fun we have at Christmas comes from plotting and planning how it will be for that year's circumstances. Even when it's really tough we have pulled it off because Christmas is about acknowledging others...it isn't about emptying your bank account.