... to wonder why there is still so much money kicking around?

[lambshop]

I work in quite a depressed area (lots of people out of work, very narrow set of jobs available if you don't have a specific skill, like cleaning, care work, shop assistant stuff - perfectly reasonable but 100s of applications for each, according to local papers).

And I try to keep up to date with what's happening in the news a lot, esp now that DH is facing redundancy (private sector - orders down year on year, but business not at risk of closing). Very worrying times, we've tried to cut back on a number of things - managed to slash our food bill by a third compared to last year with batch cooking and meal planning

But this morning I was dropping off DH's keys (long story) to his work at 9am, in his work's town centre, and because I've not been there in a few months cos we live a good 20 miles away from it, I was surprised to see the general state of the place, tbh....

AIBU to be shocked to see;

• No downturn in the number of people in cafes / coffee shops (isn't the media always talking about how people have started to cut back on the non essentials, like us?)

• Parking in the town square still as choc a block as ever (paid - run by a private company for the local council i think)

• Buses still empty like when i used to use them for work (not surprising due to our rural area)

• Sooo many people walking down the road with a sandwich and Starbucks in their hand

... on the ground level, is anyone actually seeing a reduction in "non essential" spending in their areas? I did notice one shop has shut down since I was last in DH's work town but it was a party shop (cards and stuff) and entirely unsuited to the area, it opened last year and 10mins away there's a Tesco..

What's it like in your area / your perceptions?

"No downturn in the number of people in cafes / coffee shops (isn't the media always talking about how people have started to cut back on the non essentials, like us?)"

I'm sure I've also read that in downturns, people who are able to are more likely to give themselves small treats (I think the example given was buying yourself a lipstick rather than going to a salon for a treatment), so maybe the people in the cafes have downsized from restaurants?

Just been to a city centre in the south east - yes people are in coffee and sandwich shops but the stores are not that full and assistants are complaining that even by reducing prices people are not buying.

Must remember to take a packed lunch and a flask of coffee next timen I go to the shops.

If you read mumsnet you would think that people are all living on shopping budgets of £50 a week and get 10 meals out of one chicken. We are better off at the moment, DH's company does well in recessions, we are on a tracker mortgage so our mortgage is very low and more than compensates for higher utility, fuel and food bills.

I understand there is an economic recession on, but to me, the recession is just a news story as neither DP or I have lost our jobs.

Our lifestyles/ income/ spending patterns have not changed just because people keep shouting 'recession', 'these difficult times' and 'frugality' on television.

Unemployed people obviously can't afford luxury spending, but most people are not unemployed.

When one gvt guy said this out loud, he was forced to resign. I don't get it. Are we all supposed to live as if we're suddenly much poorer then we used to be? Even though most of us aren't?

agree with morris... nothing has changed for us (though when the child benefit stops that will make a bit of a dent)... house prices where we live are stable at worst, and really decent houses are going for well over 2007 height of the market prices...

Nobody will like this statement but the truth is whilst both unemployed DH and I changed very little about our lifestyles. It couldn't have gone on forever and the relief at being employed again of course was undeniable.
But we didn't cut back, at all.

That's not to say of course that everything has become more expensive because of course it has, much less bang for your buck, but the amounts being spent aren't changing, just the carrier bags are lighter as a result.

The gap between rich and poor is getting wider I would imagine.

So those who are fortunate enough to have kept their jobs have also benefitted from low interest rates giving them more money per month. If you are on a good salary with good benefits (ie mileage allowance) then the rising costs of living have been negated by this and so the richer keep on spending... add in the fact there are good deals on holidays/cars/clothing as these industries have been hit by the cuts, and the wealthy are laughing ll the way to the cashpoint!

The poorer are harder hit but it is less noticable thanks to the richer still spending. If interest rates rise, I imagine that would change.

But yes, shops seem busy but there are lots of sales aren't there?

low rates , not if you followed the advice to go for a fixed rate mortgage at 6% because interest rates were predicted to rise [bitter emoticon].

dp is a publican and takings are down

btw, you are quite judgemental and if an area has a starbucks it isn't what I'd call 'deprived'

This is exactly what my (dyed-in-the-wool Tory) parents used to say during the recession in the early 90s. They somehow seemed to think that unless people were walking around wearing old sacks tied with string and eating gruel that tales of financial hardship were all made up

As other people have said, on average people are worse off. In practice this means that some people are better off, some are no worse off, and others are much worse off etc etc. That doesn't translate into everybody stopping spending - most will just cut back a bit. And of course some people just carry on spending regardless

i think reality will hit later in the year sadly

I recently moved back to my old town and went there last week after an appoitnment for the first time properly.

The cheaper shops have long gone its like a ghost town in the actual shopping centre.

However the expensive boutique places like Jo Molane,Chocolate hotel,White Company, Jo Jo Maman Bebe and designer shops like Karen Millen where all still there.

Seemed strange....assumed the expensive places would go first...

Where I live - semi rural spot south of Edinburgh - I can guarantee its because so many people are independently wealthy and don't need to work for a living. All the things you mention eg shop car parks full of new or nearly new largish cars during the day - cannot be explained by shift workers, who are not common round here anyway. The park and rides OTOH are quite empty. People strolling about shopping going to garden centres etc, late forties to mid fifties, perhaps early retirees before pensions got pushed. You feel in a minority to have to actually work for a living here. Most people I know do not in fact work but are reasonably affluent - I don't really understand how tbh. Perhaps inherited wealth, wealth from property etc..