Are we heading for a recession?

[witches*wol]

Mr Witches and I were not long married when we had the "recession we had to have" in the late 80's so we have lived through one, it wasn't fun let me tell you.  I ended up being the only person in our family with a job and we lived on 1 meal a day cause I didn't earn enough to pay the rent, the bills, keep the car running and buy food.

We are seeing businesses here in Melb closing down, putting staff off or not replacing staff when they leave.  Small companies that have been around since the 1990's are closing so it is not businesses that have only just started up.   I know of 4 people who have been retrenched due to a lack of work and 2 others who have had their hours reduced.

This is all starting to look very familiar  😞 

Anyone else in business seeing these signs?

[catsnknots]

I have been talking about the terrible state of small businesses for a long time... I have said they are going broke and not making money... Red and Green tape, CO2 tax, increased Super from tomorrow... people spending much less. 

yet I am constantly told I am wrong and that the Labor Government tell us how good things are and that we have a AAA credit rating. That we are the envy of the world.. 

Well I can only speak from personal experience... things are getting harder... things are getting more expensive, to run a business is much more difficult and much less profitable... 

I think that some areas are in recession...... 

Funny bookkeeping can keep those facts from the public. 

[***super_nova***]

Australia cannot separate itself from the rest of the world, which is in recession.  We have it as good as it is because of the Labor government.  But there are other influences & there were massive changes over the past few years; like that people buy on line.  Also, many people have been paying off their massive CC debts acquired during the Howard years, so they are not spending as much as they did then.

The simple fact is that we cannot expect our lives to get better and better; it is not sustainable.  Just as most people understand that pyramid schemes are not sustainable; we should understand that economy cannot grow forever without increase in population, and forever increasing population is not sustainable. 

However, as Australia's debt is small in comparison to GDP, the unemployment figures are also low - jobs are being lost but other jobs are being created, interest rates are  record low  - great for business and housing loans, so we are in pretty good shape.

But best way to bring on a recession is to make huge cuts to government spending and throwing large number of people out of workforce, which is what TA is promising to do. 

[margomeoz]

I agree with super nova.

Witches wol there is no doubt it is harder but you can still survive I am running 3 businesses now instead of two to get the same money I was 2 years ago but compared to the rest of the world we are in good shape.

[i-need-a-martini]

I think Australia is simply skimming the surface of a recession being experienced by the rest of the world.

Yes some businesses are going bust but ultimately the country is doing well. Yes some people aren't doing too well but others are prospering.

[witches*wol]

Sorry to post and run, hubby decided we'd take advantage of the nice weather and prepare the greenhouse for planting.

I hope you are right ina martini that we are just skimming the surface of a recession.  Maybe after the election things will improve and people will spend money again. I've heard quite a few businesses have put things on hold while they wait to see who ends up in power.

[catsnknots]

 Maybe after the election things will improve and people will spend money again. I've heard quite a few businesses have put things on hold while they wait to see who ends up in power.

I know a lot of people and businesses that are not spending and if Rudd gets in they will not start spending... 

They are waiting for the Coalition to come in and remove red and green tape and make running a business more profitable again. 

If they don't then many will not be able to afford to keep going.. if they could afford it then they would have already done it by now.