Recession???

[Bunty4]

Newspapers and sites officially announced recession....but looking at foot traffic in Westfield and across RnT's sometimes I wonder what real recession would mean...is this not market correction which was due for a few years now...I mean is it not stupid to want quarter on quarter, month on month growth to be reported....of course finance numbers are going to be crunched....yes people have lost jobs....but government is not doing any favours by handing of hefty amount as support, people have abused the hand out....there are so many jobs that people are just not ready to take because hand out money is equivalent of money made after tax by working....

I reckon RnTs and FS industry will do well....it's nature's rule that when things look bleak, body wants to reproduce.....

[Travelmate]

GDP Australia report negative 7% yesterday in june 2020 quarter.

Household saving to income increase to 19.8% from 6%

This explain everything.
When is last time we see this?

This number came from ABS yesterday

[Travelmate]

Some shops still go well and expanding and take this as opportunity and portfolio girls into their network such as City, parramatta and ryde.

There are also new shops here and there in suburban taking advantage of cheap rental running smaller scale business model as less people travelling to CBD.

There are shops running Sunday special , some consolidate from 2 branch back to one.

Still plenty around for punters.

[holi_day]

I have friends running some e-commerce and exports business said the local market is awfully quiet. But Chinese are still buying strongly especially online.

[cuteguy]

Our farmers are begging for workers to come and work on their farms while the government hands out payments for people to do little. How about sending the unemployed to the farms? Why do we need to bring in workers from South Pacific to do farm work that Aussies could do? :question:

[dundersyd1]

Farm jobs have been exploiting foreign workers for years. It's a shit hard job but they won't want to pay Aussies for the shit hard work.

Feel bad when I meet girls here on working holidays who end up out in those country areas. Some enjoy the experience but the pay isn't worth it

[walsta]

Farm jobs have been exploiting foreign workers for years. It's a shit hard job but they won't want to pay Aussies for the shit hard work.

Feel bad when I meet girls here on working holidays who end up out in those country areas. Some enjoy the experience but the pay isn't worth it

I know a few female backpackers that had to do farm work. Pay isn't great and also not mentioning the constant creeeping at the girls from the farmers

[TangoEcho]

I know a few female backpackers that had to do farm work. Pay isn't great and also not mentioning the constant creeeping at the girls from the farmers

Pay a fair wage and people will want to do the job. Too many times people complain that they can't find people to do the job when what they really mean is that they can't find people to do the job for what they want to pay.

[whatuppop]

i run a small takeaway shop at a small surburb shopping centre. the biggest impact has been melbourne shut down- i reckon 5-10% decrease. before that there was probably no loss in revenue due to covid. small suburbs probably wasnt as badly affected as cbd since people stayed home thus increasing sales for us. its too early to see how it would pan out

[Labia Vortex]

You ain't seen nuthin yet....
This recession will slide into a depression
Wages will driven down
Reliance on credit will increase
Youth unemployment will hit 25%
The gap between the rich and poor will become a chasm
Kids coming out of high school over the next 5 years sill become an underclass...forced to live at home for st least a decade

[Bunty4]

You ain't seen nuthin yet....
This recession will slide into a depression
Wages will driven down
Reliance on credit will increase
Youth unemployment will hit 25%
The gap between the rich and poor will become a chasm
Kids coming out of high school over the next 5 years sill become an underclass...forced to live at home for st least a decade

Stop scaring the Shi* out of me...

[Steph]

Stop scaring the Shi* out of me...

The COVID-19 forced an emergency brake on Australia economy in March. Lucky that most states are moving on again, but Victoria stalled her engine. It’s kind of like the 1929 Great Depression.

Things look well for now because government spending and banks refraining from taking back money; but that won’t last too long. I am glad to be on a rather secure job in the public sector, but I am still pessimistic about how things could go all wrong.

I would not call that scaring, it’s just telling from experience.

[Labia Vortex]

The economy was already sliding into recession before COVID
wages flatlining for a decade
Forcing consumers to tap into credit
Deflation had taken hold
GDP on idle
COVID Just brought the inevitable forward
What it did do was force the Libs to intervene using socialist policies
Big ideological ouch

[Raybo]

I always thought the libs tried to sandbag the last election because of the impending recession. They couldn't even manage that hahahaha

[GoldfishMan]

Governments and economists will always expect small but constant GDP growth because, believe it or not, that is actually the norm. It's all because of population growth... Under normal circumstances, you'd expect at least some growth in your population, be it from births, migration, etc. If the population grows but GDP does not grow accordingly, that is a big problem.
Now, there is another metric called GDP per capita, meaning how much of GDP is attributed to a single person in the population. If you google it, Australia's GDP per capita has actually been DECLINING since 2018.
However, overall GDP, the one currently making news headlines, was still rising until now.

So what does that mean? It means that Australia's economy, since at least 2018, has largely been supported by population growth, specifically from NOM (net overseas migration), not from wage growth or inflation.

Once COVID turned the immigration tap off, we can see the true picture: left on its own, without the NOM to support it, Australia is basically fucked.

Almost all of our industry sectors that were in good shape before the COVID were all dependent on NOM: property, tourism, education, hospitality, gaming, and even retail to a certain degree. The only one not dependent was mining, and even in that regard we're shooting ourselves in the foot by picking fights with China!
We also lack the industries that could help us move forward without NOM. Manufacturing is dead, for example. Agri, maybe ok, but that is on the same boat as mining...
Stop fighting with China, stupid. That's like the big bro USA telling us to eat shit and we actually do it!

[GoldfishMan]

I'll add one more comment. There is a good thing to come out of all this. At least this will finally make the current generation of Pauline Hansons and Peter Duttons shut up about reducing NOM.

[Labia Vortex]

The worst is yet to come...
COVID is here to stay
Apart from pie in the sky vaccination no one has
Come up with a way to adapt
Somewhere along the way government income needs to be supplemented
An increase in the GST is bubbling in the background
GST hits lowest income earners hardest... more people will flock to Welfare

[Steph]

This is the first time I am seeing a time of recession as an adult... have read about it, and frankly, I fear of it more than the pandemic itself. Anyone can share some experience on how it would impact our daily life?

[Travelmate]

US will probably consider start printing money notes if GDP reach negative 7.

[Carissawhore]

I just started working during 2008 recession, it was really bad back then I used to work for billion dollar company and you would think you are safe, but the company started to layoff all top level managment in the beginning and just kept crucial employees, they also reduced all staff members and asked us to extend everyday for an hour without pay, nobody opposed the mgmt since people kept loosing there jobs and to have one was like winning a lottery. I am not trying to scare anyone here, just make sure you have enough saved up for rainy days atleast to cover yourself and family for a year. All my friends and colleagues have started to save lot more now as you cannot predict tomorrow.
Covid has ruined lot of families financially and mentally which tends to take toll on peoples relationships, sometimes i think RnT joins and FS shops are like therapy, we get to take our stress out and enjoy ourselves for a moment.
We are all in the same storm but regular people are on small boats and rich are in their super luxury yacht.

[TangoEcho]

Governments and economists will always expect small but constant GDP growth because, believe it or not, that is actually the norm. It's all because of population growth... Under normal circumstances, you'd expect at least some growth in your population, be it from births, migration, etc. If the population grows but GDP does not grow accordingly, that is a big problem.
Now, there is another metric called GDP per capita, meaning how much of GDP is attributed to a single person in the population. If you google it, Australia's GDP per capita has actually been DECLINING since 2018.
However, overall GDP, the one currently making news headlines, was still rising until now.

So what does that mean? It means that Australia's economy, since at least 2018, has largely been supported by population growth, specifically from NOM (net overseas migration), not from wage growth or inflation.

Once COVID turned the immigration tap off, we can see the true picture: left on its own, without the NOM to support it, Australia is basically fucked.

Almost all of our industry sectors that were in good shape before the COVID were all dependent on NOM: property, tourism, education, hospitality, gaming, and even retail to a certain degree. The only one not dependent was mining, and even in that regard we're shooting ourselves in the foot by picking fights with China!
We also lack the industries that could help us move forward without NOM. Manufacturing is dead, for example. Agri, maybe ok, but that is on the same boat as mining...
Stop fighting with China, stupid. That's like the big bro USA telling us to eat shit and we actually do it!

Hopefully the good thing about this is that we realise how overdependant we were on others. We couldn't even make something simple like n95 masks. We were better but successive governments have hollowed out the Australian economy.

[doctorspock]

Our PM will call on Trump to save Aust out of depression?

[Meng]

Our PM will call on Trump to save Aust out of depression?

Yea totally. Whatever exports we are losing from China I’m sure the US will make up. Get the PM to pick up the phone and get US to buy our beef, wine and wheat.

[altvmla]

Yea totally. Whatever exports we are losing from China I’m sure the US will make up. Get the PM to pick up the phone and get US to buy our beef, wine and wheat.
Are you taking the piss?