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The state of the economy at the street level

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Self Serve in the supermarket is one I avoid. If I make a mistake in scanning the items then I become responsible and liable for potential theft accusation. If the check out person does it I am not liable. They also pack the bags, and even communicate.
 
sptrawler said:
It also doesn't take holidays, sickies, need superannuation payments, doesn't go to the dunny or out for a smoke, doesn't sexually harass anyone, doesn't complain, doesn't have to go home to sleep, just does the job.
Click to expand...

That’s actually one of the reasons I like Disney.

Mickey Mouse and the rest of the Gang don’t have agents lobbying for pay rises, and unlike other studios human stars, Mickey isn’t at risk of going rogue or going to rehab, hahaha.

He does exactly what Disney wants, when they want and he never complains about it.
 

Ohhh yes they do have agents, special agents... called cartoonists.
And there is bickering all the time, Elmer Fudd is always gonna blow the crap out of Wabbit, Coyote going to do the Road Runner in, Donald Duck is always whinging. Do a search on Mickey Mouse Drunk. He has had a few issues!!
That's NOT all Folks
 
sptrawler said:
What I always find funny, is when you go into a bank to withdraw money and the teller says "why don't you use the ATM"?
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Almost a year since I moved states and I still don't know where the nearest branch of the bank I use is located.

There has simply been no reason to go there so I've had no cause to find out where it is.
 
I agree, in day to day operations, no need for a branch unless an antique organisation like my council requires a bank cheque..
But i had coffee with a premier representative
Banks need to move to a network of marketing customer contacts to offer personalised services, the rest can be done on the internet, and it is
 


The superficial analysis leads to an error in attribution in this example.

We have a company that increases its services and concurrently drops its prices. What can actually be held?

The factors of production:
i. Land; and
ii. Labour; and
iii. Capital

The increase in land will [likely] be marginal and can therefore be discounted for this analysis. As can labour, given that in the example 90% unemployment is the situation.

Therefore the increase in services and fall in price will be inferred from an increase of capital invested into technology.

We are assuming that the company is profitable. Which of course may not actually be the case. If it is, then the following must apply.

We know that at "Y" [old prices] sales volume will be lower than at "X" [new sales volume] because to be profitable at "X", a greater volume [at a lower price] must be sold than at "Y". Therefore we can conclude the price is elastic.

Where did the new capital [for investment into technology] originate?

i. Bank loans; or
ii. Selling debt instruments into market; or
iii. Selling common stock; or
iv. Retained earnings; or
v. New partners supplying buy in capital.

With a 90% unemployment rate, [ii, iii, v] all become unlikely. This leaves [i and iv].

In a true banking system where banks do not expand the money supply, the ability to provide investment capital resides in the volume of savings held on time deposit.

The 90% unemployment rate depends on:

i. Voluntarily unemployed [retired, other] not seeking paid employment; or
ii. Seeking paid employment.

If [ii] then any savings are likely to be on demand deposit and low.

Of course banks do not operate this way [although with a 90% unemployment rate I rather think they would] they operate on a fractional reserve model, thereby inflating the money supply and could provide the investment capital as a bank loan.

No issues if funded from retained earnings.

All of the factors of production have a cost. To be profitable, the consumer price must pay all the intermediate steps of production and the original factors, with a profit remaining.

Two issues arise:

i. With a 90% unemployment rate, it is highly unlikely the intermediate steps of production could be met; and

ii. With 90% unemployment, where does the money [exchange goods] originate to purchase the services offered?

On just this superficial analysis, [as so much more would need to be considered in an example that is so clearly wrong] the 90% unemployment rate, indicated as being acceptable if the production of goods and services expanded, is simply childish.

If we considered the other possibility, viz. that the 90% unemployed were unemployed by choice and had the capital to live off of via investments, the cost of capital would fall. The question would then be:

i. Is the return on investment [funds loaned] sufficient to sustain an unemployed lifestyle? The return on capital loaned, would need to be marginally higher than the cost of all goods/services consumed, to preserve the capital base.

In theory, it is possible if the area "A" [the area of 90% unemployed] invested in area "B, C, D, etc" that had a more normal employment distribution and a higher cost of capital.

On more practical terms however, in a place with 90% unemployment [for either reason] where will you get a cup of coffee, a meal served, medical or legal services? The whole argument is simply nonsense.

jog on
duc
 
Just drove past a Woolies servo with save 8c a litre sign up and they’re queuing up to get in there.
Most of the cars look like they would hold 50 litres dead empty
 
Humid said:
Just drove past a Woolies servo with save 8c a litre sign up and they’re queuing up to get in there.
Most of the cars look like they would hold 50 litres dead empty
Click to expand...

0.08x50 is $4. Is it worth it? People will queue for an hour too motor running. Then go into the servo shop and pay that for a coke. The state of economics at the servo level.
 
I know it does tend to start early these days but the extent of Christmas hype starting to emerge, when it's only early August, says something surely?

It sounds like a desperate attempt to get people spending?
 
China tanking our dollar.
Might bring in overseas money?
 
Smurf1976 said:
I know it does tend to start early these days but the extent of Christmas hype starting to emerge, when it's only early August, says something surely?

It sounds like a desperate attempt to get people spending?
Click to expand...

Usually Christmas promotions don't precede Father's Day.
 
More sobering news from the Reserve Bank. They are prepared to do whatever it takes to keep the economy going.

There is a particularly scary observation at the end of the story on their concerns over the Chinese banking system. Tied in with the US trade war on China there is much to think about.

Reserve Bank 'prepared to do unconventional things' as economic outlook worsens
https://www.abc.net.au/news/2019-08-09/reserve-bank-cuts-economic-forecasts-again/11399576
 
These are the times you wish you had a public service defined benefit pension, no stress the taxpayer picks it up, jeez I would go back to work, if they re introduced them. Lol
 
Well at least theres this:

"national trade surplus is now at a record $8 billion, with exports climbing 1 per cent from May to June, while imports fell 4 per cent."

Gives Australia the opportunity to sell more crap overseas while our dollar tanks.
 
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