The state of the economy at the street level

[frugal.rock]

Im seeing a slight pick up in housing.

So am I, in Sydney anyway.
As a Surveyor, my bread and butter depends on it. Larger developments are suffering from the lag, slow sales etc and am yet to see any substantial pickup in that domain, but give it another 12 months with current interest rates I reckon.
Maybe all the comrades are returning funds to the mother land like their propaganda has been calling for...eg, development in Beijing is showing no signs of slowing down.
F.Rock

 

[sptrawler]

But the vast bulk of those tax cuts go to those in the top tax brackets (and they are permanent, unlike the offsets already delivered). Nothing that has happened in the past twenty years suggests that those people (I am one of them) put back more than a tiny percentage of their tax cuts into the "real economy" - at least not in their own country. I'd prefer any spending went to both those at the very bottom (Newstart), who will spend it in retail, or to infrastructure spending (including investments public education and health) where the money flows to contractors and other small businesses and increases national productivity over time.

Reducing the tax rates at the lower scales and increasing Newstart, would help IMO.

 

[moXJO]

I think if you asked a hundred random people what they want but don't have, and specify that the answer can be literally anything so long as it's physically possible with current technology (so no landing on pluto etc), then there'd be very few who'd mention anything which involves a purchase in a retail shop of any kind.

What I expect you'd hear is:

Health - lose weight, get fit, drink less alcohol, eat better, etc.

Work - Improve their employment, business or as a step to get there education.

Finances - Reduce debt or increase investments.

Relationships - Find love or for some people end an existing relationship and move on.

Experiences - Travel mostly but also things like live entertainment, exploring nature and so on.

I'd be seriously surprised if anyone other than children thinking of Christmas presents or those who are genuinely quite poor would mention anything that's bought in a shop. Closest for most would be building materials for a house renovation etc.

Point being that even if someone (eg government) did hand everyone $1000 cash then I can't see too much of that going through the tills at bricks and mortar retailers. A bit would but in reality a lot would be saved / invested, used to repay debt or spent on holidays (mostly overseas), joining a gym or whatever.

If the aim is to stimulate retail in actual shops then about the only thing I can see doing that is to increase the incomes of those at the bottom. Increase the minimum wage and the dole. They're really the only people who don't already have everything anyway.

The more I think about it, I would say mobile phones killed a lot of entertainment purchases. Music, tv, computers, gaming (to a degree), books, camera's and the list goes on.

These days life seems to revolve around them.

 

[moXJO]

So am I, in Sydney anyway.
As a Surveyor, my bread and butter depends on it. Larger developments are suffering from the lag, slow sales etc and am yet to see any substantial pickup in that domain, but give it another 12 months with current interest rates I reckon.
Maybe all the comrades are returning funds to the mother land like their propaganda has been calling for...eg, development in Beijing is showing no signs of slowing down.
F.Rock

Yeah I'm just out of the city and its heating up again.

 

[jbocker]

Went to the movies in a big theatre yesterday the only staff I had to confront was the popcorn check out person. Didn't even have a ticket checker ..no one ripping tickets. Could have just walked in.
How cut down do you want to get???
I will post a photo later from the theatre that made me sad.

 

[jbocker]

I know there are PLENTY of examples of this but it saddened me to go to the old movie ticket purchase counter and see this. No people but there is still the counter where they once were. I miss the humans, even that one with the snotty nose and didn't give a sheet.

 

[SirRumpole]

I know there are PLENTY of examples of this but it saddened me to go to the old movie ticket purchase counter and see this. No people but there is still the counter where they once were. I miss the humans, even View attachment 98911 that one with the snotty nose and didn't give a sheet.

I'm surprised that movie theatres are still in business given the range of home theatre systems on the market these days.

 

[Smurf1976]

Just heard that Harris Scarfe has gone into administration.

HS is a chain of department stores best known in SA but also operates in Vic and Tas.

In terms of market position they’re below DJ’s or Myer but above Kmart or Big W.

 

[tech/a]

Sad
Was in there on the weekend shopping.
Life is now so impersonal.

 

[jbocker]

By chance I had a minor observation within Woolies that left me wondering if there may be a scam operating procedure at play.
My elderly Mother in Law has a some assistance from providers and has been giving a small gift box of nice chocolate to each of her providers. Wife and I have been buying these on her behalf. Cost 6.30 each last week. On the weekend she realised she needed another. Went to Woolies on Saturday and they cost $8. No big deal except the wife commented to a staff person they were cheaper last week. The staff person said they will be back 6.30 after the weekend.
So are prices put up on weekends when the poor full time workers shop?!
Just a chance observation but wondered how much of this may be about. Anyone else noticed similar?

 

[greggles]

If the aim is to stimulate retail in actual shops then about the only thing I can see doing that is to increase the incomes of those at the bottom. Increase the minimum wage and the dole. They're really the only people who don't already have everything anyway.

Exactly, but doing that would seem like more welfare , tax and spend, just what the LNP campaigned against.

Just another example of ideology getting in the way of what really needs to be done.

Why not just keep increasing the tax free threshold? Wouldn't it have the same effect of putting more money in the pockets of low income earners?

Fewer people having to submit tax returns means less workload for the ATO and those extra dollars would be converted into retail sales and GST revenue for the government. Not to mention making life a little easier for those on low incomes.

The raising of the tax free threshold from $6,800 to $18,200 was an inspired move in my opinion. It's welfare in a sense, but not in the sense of handing out money. It lets low income earners keep more of the money they earn, most of which will end up spent at retail outlets or on basic necessities.

Keep increasing it and you'll have more money injected into the economy. Low income earners generally aren't property owners, so lower interest rates don't impact them.

 

[qldfrog]

Why not just keep increasing the tax free threshold? Wouldn't it have the same effect of putting more money in the pockets of low income earners?

Fewer people having to submit tax returns means less workload for the ATO and those extra dollars would be converted into retail sales and GST revenue for the government. Not to mention making life a little easier for those on low incomes.

The raising of the tax free threshold from $6,800 to $18,200 was an inspired move in my opinion. It's welfare in a sense, but not in the sense of handing out money. It lets low income earners keep more of the money they earn, most of which will end up spent at retail outlets or on basic necessities.

Keep increasing it and you'll have more money injected into the economy. Low income earners generally aren't property owners, so lower interest rates don't impact them.

You just forget that for the left, government must be in the loop
To blackmail and keep hostages and dependant addicted to welfare
Raising the tax free threshold also means less administration and so less gov employees
Both the above explains Labour position, but i agree lower the rate, increase threshold, simplify the system and the country wins

 

[qldfrog]

Back to HS collapsed, i saw their store in Chermside last week.thry were present in qld

 

[SirRumpole]

Just heard that Harris Scarfe has gone into administration.

HS is a chain of department stores best known in SA but also operates in Vic and Tas.

In terms of market position they’re below DJ’s or Myer but above Kmart or Big W.

Harris Scarfe was supposed to open a store in Orange NSW to replace a departing Myers store. Just shows how much the High end stores are struggling.

BigW and KMart are still around the Orange area selling cheap junk but they are struggling too. If trade does not pick up this Christmas, I fear for the continuity of other retailers

 

[Tyler Durden]

Walking along Crown Street in Surry Hills/Darlinghurst this morning, I saw 7 empty stores within two blocks with a 'For Lease' sign on the window. I thought to myself, "so this is what a recession looks like".

 

[moXJO]

Retail sales in Australia were flat in October 2019, following a 0.2 percent rise in the previous month and missing market expectations of a 0.3 percent gain. Declines in clothing, footwear and personal accessory retailing (-0.8 percent), department stores (-0.8 percent) and household goods (-0.2 percent) were offset by gains in cafes, restaurants and takeaway food services (0.4 percent) and food retailing (0.1 percent). Meantime, other retailing was relatively unchanged. Retail Sales MoM in Australia averaged 0.47 percent from 1982 until 2019, reaching an all time high of 8.10 percent in June of 2000 and a record low of -10.60 percent in July of 2000.

 

[moXJO]

Not a lot of people spending in the shops over the weekend (Unusual this close to Christmas). But there were a lot on Thursday night.

Sales staff are suffering through my haggling a lot longer than they use to. I'm getting some killer deals.

 

[SirRumpole]

The collapse of a major building supplies company is more worrying news.

https://www.abc.net.au/news/2019-12-17/400-jobs-lost-as-building-supplies-company-goes-bust/11807006

 

[sptrawler]

The collapse of a major building supplies company is more worrying news.

https://www.abc.net.au/news/2019-12-17/400-jobs-lost-as-building-supplies-company-goes-bust/11807006

Well I guess building supplies will be suffering, a burst housing bubble and the crumbling apartments issues, has to have a negative effect.
What I'm also noticing is, the young seem to have moved on from designer footwear, tee shirts etc, to big phone plans, drinking and eating out.

 

[Tyler Durden]

Well I guess building supplies will be suffering, a burst housing bubble and the crumbling apartments issues, has to have a negative effect.
What I'm also noticing is, the young seem to have moved on from designer footwear, tee shirts etc, to big phone plans, drinking and eating out.

Funny you say this. I collect sneakers and the Adidas Yeezys have been the 'must haves' for the last few years. They retail at $340 and resale ranges from $400 up to $1200. People line up hours for them and they are sold out all the time.

However, with the last two Yeezy releases, there has been a noticeably smaller crowd lining up to buy them, to the point where they're not even selling out anymore. I'm not sure if this is because the sneaker companies have just flooded the market with more sneakers than people can wear/collect, or if the rich Chinese international students no longer have the money to pay resale prices.