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Necessity goods* And i dunno, it's all about consumer confidence, if people believe the economy is stable, prices aren't rising rapidly, unemployment is low, they'll spend more. But at the moment people aren't sure, they dunno if to spend 700 quid on a new tv cause all of their bills are rising and they're scared they might lose there job. So yeah, at the moment people are mostly saving, but to get out of the slump spending is needed.Quote:
Originally Posted by kk.
Spend more, otherwise we'll be in a worse suituation then we are in now.
dont correct me, they mean the same thing..Quote:
Originally Posted by Ramones
and we're not in a slump. Heading for one maybe but its best to keep optimistic lol. True, the increase in unemployment will worsen the effects of the recession. As less people are now spending money because they either cant because of too much bills, or they darent incase they will need it. Although the cut was small, its still a cut. it might not influence people to buy a £40 game because its a very minimal saving. But as i said before, if companies do things to try and influence people to go into their shops and buy such as 20% and the customers know we are in a recession, they will know that the company may do it again so they will hold of spending until the next sale comes along. It will more than likely happen as they need to generate important sales.
And on the matter about the price decrease not being passed on, it shouldnt matter too much ebcause that 2.5% will then go to their profits which they pay tax on and also, if the profits are big enough, they do not lay off as many people
Quote:
Originally Posted by kk.
I don't really understand what your on about, i think your looking at it from a social point of view rather than economic.
Can you give me an example of what you mean? You said clothes shops, but shops are having sales all the time COMPETING against each other, if i go shopping i'll go to the store which has the sale on alright, but what your saying is, all the shops are having 20% discount days at the same time, so people are waiting until this day and then buying everything, am i right? And it doesn't work like that, as i explained.
not what i meant lol,
just look at one shop say topman. If they decide tomorrow to do a one day discount of 30%, then you would probably go tomorrow and buy some clothes (if u shop their). If the customers had perfect knowledge of the current economic situation then they would realise that they are having to do this because of a fall in profits. Afdter they have done the 30% day, i would expect them to have a lower amount of sales from that point onwards because a lot of people know they will, surely, have to do another discount day until the recession ends. therefore, topman would see a drop in sales until the next discount day in which they would still only see a marginal rise in profits because the price of each product is so low.
hope that makes sense lol
To get the economy going again it's fairly obvious that public spending needs to increase.
Labour have cut VAT and are planning a cut in taxes for people earning below 40K a year, which I hope will help.
If people don't spend, less money will go to the state, businesses will suffer, and people will loose their jobs.
I suppose in theory that would work, but in the real world we're no where near perfect knowledge. I don't think it would work like that in real life, again as i said earlier your not taking into account substitute goods/ rival shops. I know there are some little scenesters that only shop at topman but i myself shop at loads of different places and wouldn't wait for a sale to go shopping again.Quote:
Originally Posted by kk.
Whatever. Next time you -rep me, do leave your name. Coward.Quote:
Originally Posted by Ramones
I thought it'd be pretty obvious it was me ;)Quote:
Originally Posted by Clowgon
Calm down!Quote:
Originally Posted by Clowgon
Pump more money into the system, more money, the better we'll be.