Australians are worried. Our worries revolve around money. Instead of spending money, we're saving it. “Households are stashing away cash...” we're told. I can't help feeling guilty, instead of stashing cash, I buy a little ice cream. Or a little chocolate. When the media makes a noise about power prices rising, I diminish our power consumption. As a result, when the power price rises, ours falls. None of that assists the economy because apart from the ice cream and chocolate treat, I'm not buying stuff. In fact I'm avoiding buying stuff. I'm one of the nervous Australians who wants to not spend, in case things go pear shaped. 'Pear shaped' in this context means 'anything that prevents us paying our bills and purchasing essentials'. By 'essentials' I don't mean ice cream and chocolate. I mean medication so that my transplantee husband can stay alive. I mean meat, carbohydrate, fruit and vegetables, so we don't become malnourished. Then things like power, water, communications costs (internet and phone). And as a luxury my university fees and things related to study.
Leading with an article that seems to berate Gen Y for 'staying home more', a development that is 'worrying business', media reports a dip in consumer activity. Gerry Harvey is quoted as saying that consumers are 'rattled' http://www.news.com.au/money/money-matters/australians-saving-out-of-fear-and-its-doing-the-economy-no-favours/story-e6frfmd9-1226097253516. He likens consumer sentiment to the kind we might have if there was 12 % unemployment. Employment is sitting at 5 %. Maybe spending on non essential items is something some people have begun to feel they can manage without. You can only kid people that they need a house looking like it stepped off The Block, or a kitchen that appears to be loosely related to Master chef, for so long. The next enormous household utility bill arrives and the makeover desire evaporates, only to be matched by a desire to maybe be able to heat the living areas (or sleeping, depending on the ages and viral status of those who need heating) of the house for a couple more months, by which time the winter weather might be over. And that's for a household without a mortgage, which pays no rent. Add the cost of shelter, and people on low incomes are in deep water. No wonder Australians are worried.
