Recession, is it as simple as ‘snap out of it’?

So are we talking ourselves into a recession?.

The above article is by Ross Gittins, the economics editor at the Age. That being the case (and me being hopeless with numbers) I don’t really have the qualifications to argue in any meaningful way with his hypothesis; which seems to be ‘chill the hell out dudes’.

However…

when you combine healthy growth in employment with too-high wage rises you get household incomes growing faster than consumer prices. So if retail sales are weak, it’s not because we can’t afford to spend, it’s because we choose not to – whether out of prudence or fear for the future.

… that doesn’t seem to describe my situation at all. Nor the situation of anyone I know well enough to have some idea of their financial status. If my my retail therapy is down, yah, it’s cuz we don’t have the money! I know nurses, enlisted men, techie’s, casual sales assitants and store managers who are all sucking in and clamping down.
Conduct a focus group and punters will tell you they’re suffering mightily under the rapidly rising cost of living – which is why politicians on both sides are always encouraging the punters to feel sorry for themselves
There’s a reason for that… petrol is darn expensive, my electric bill wont behave, meat is now a specialty food in my house and being a vegetarian wouldn’t be a ‘cheap’ alternative either! I don’t doubt that there are a ton of people with great jobs and pay-packets I can only dream of, who have hardly noticed the bill rises, the cost of meat and the propensity to charge a body part for a tank of fuel… but I don’t know any of them!
There are five adults living in my residence with me! 5! The marketing manager of a chain of food retailers lives out of my shed! You think we’re doing this because we’re paranoid, Mr Gittins?