Honey I've Shrunk The Economy

[Tannedbaldhead]

Last week I was surveying service ducts under a hospital and found myself paddling in an ankle deep fine silt mud washed in from the paving above, My workboots were ruined and required replacement which I did with a pair of Dunlop cheapies I bought in Sports Direct.
What I realised was this is my first non essential purchase since lockdown: no new shoes, clothes, sportswear, mountain bike stuff, outdoor stuff no house stuff,...….nothing.
Then I realised that although I've worked through most of lockdown I no longer buy lunches of coffees (I now have breakfast in house make my own coffee using my stovetop and milk frother and eat a packed lunch of a protein shake, banana an apple and orange) , haven't been to a restaurant or pub, haven't been on a daytrip in car. I handed back my PCPed car in March and haven't replaced it.
I'm working all over the country but refuse to stay in work expensed hotels or eat in work expensed restaurants. Instead I insist on Airbnb apartments and buy and prepare my own breakfast and meals.
As I stand today my job is secure, due to the amount of overtime I'm clocking up my income is higher than usual and having spent nothing in 5 months my bank account is looking very healthy.
Odd thing is I'm not that concerned about the virus. I'd class myself as timid rather than terrified but I seem to have put my entire life on hold till some sort of return to life as I enjoyed it returns.
Poor Rishi Sunak will be taking a stload of criticism but, in reality and considering the amount of opening up of lockdown and encouragement to get out do stuff and spend, is it me and the likes of me who have broke the economy.

[civicduty]

Short answer - Yes.

[hyphen]

Are you on PAYE? If so don't worry, you are doing your bit.

[Stay in Bed Instead]

Yes, consider yourself chastised.

Oh, and I would say the work boots were an essential purchase.

[Desiderata]

Me too.

Classed as essential worker so more work than I have time or inclination to do.
Cancelled two foreign holidays and numerous UK trips. Not through choice, either forbidden or pointless given current situation.
Only doing essential shopping, combination of restrictions and what's the point.
No eating or drinking out.
No time for the hobbies that I'm allowed to do (and they don't really involve spending anyway.
Lots of DIY and homegrown food.
Can't do planned home improvements due to difficulty in getting materials.

Bank account is growing rapidly almost to the point that I'm worried the government will steal it to give to the poor when the economy collapses. Almost an excuse to buy myself something nice .

[Earthdweller]

It’s amazing when you realise how little you actually really need

The problem is how do the Government get you to start buying things/services you've realised you don’t need/want again ?

[Evanivitch]

All the trades people I talk to seem to be busy. We'd already planned a new patio and driveway, as well as a new garden wall, part re-rendering and repainting the house.

If you put some of that saved money towards home improvements then it all works itself out.

[bloomen]

My expenditure other than travel and eating out has been pretty consistent, but my life is a bit weird compared to others.

I think a lot of people were induced to look at how much they were squandering and how little they were getting out of it too. They otherwise may never have done that.

Once you do that you may not go back to it. Throw in job uncertainty and I think the real fallout hasn't begun yet. Perhaps things will bounce back rapidly but even if they do having a real time demonstration of being more sensible is a powerful thing that may linger.

Expenditure on quality things may eventually go up, but that still means a lot of businesses related to the more piffling end may vanish.

[ATG]

Evanivitch said:

All the trades people I talk to seem to be busy. We'd already planned a new patio and driveway, as well as a new garden wall, part re-rendering and repainting the house.

If you put some of that saved money towards home improvements then it all works itself out.

Eventually, yes, but in the medium term if we all change our spending patterns like this it's still a huge asymmetric shock with a load of businesses going bust and another load having to expand rapidly. When you consider that annual growth usually sits well inside the range -1% to +3%, we don't need to change our spending patterns much to have a big impact.

[Evanivitch]

ATG said:

Eventually, yes, but in the medium term if we all change our spending patterns like this it's still a huge asymmetric shock with a load of businesses going bust and another load having to expand rapidly. When you consider that annual growth usually sits well inside the range -1% to +3%, we don't need to change our spending patterns much to have a big impact.

Agreed. I wasn't taking that wide a view, mainly responding to the OP's position of having saved on consumerism it would be a decent option to invest in home improvements (which through the trades people and local suppliers can pay into the local economy much faster than coffe chains/large retailers).

[TCX]

Mostly worked since Feb,same here few online purchases mostly business related,gone from going out 3/4 times a week to none,only eat own cooked stuff now,no frivolous purchasing,indeed ideal time to sell carbon frame road bike I hardly used,shares,pension well up,money into bank,stays there now seems like old habits broken

[Tannedbaldhead]

Desiderata said:

Bank account is growing rapidly almost to the point that I'm worried the government will steal it to give to the poor when the economy collapses. Almost an excuse to buy myself something nice .

My cousin keep mentioning this..... Surely not.

Fair enough, tax income if need be but, say earn £40k and empty the bank account buying a new sports motorbike and a set of full racing leathers and you're fine. Earn £40k per annum and find yourself with £15-£20K stacked and have it disappear in govt coffers just because it's there? That's very unfair.

[RDMcG]

That would require some kind of wealth tax which I would think would be for the very wealthy. It is not a bad idea to have dine resources as nobody has a clear idea of how bad the world economy is going to get.

[bloomen]

Tannedbaldhead said:

Earn £40k per annum and find yourself with £15-£20K stacked and have it disappear in govt coffers just because it's there? That's very unfair.

They'd be dangling from lamp posts if they did that. It'll be more subtle like negative interest rates et al. The last thing they'll want is people hoarding their money.

[Stay in Bed Instead]

Tannedbaldhead said:

My cousin keep mentioning this..... Surely not.

Fair enough, tax income if need be but, say earn £40k and empty the bank account buying a new sports motorbike and a set of full racing leathers and you're fine. Earn £40k per annum and find yourself with £15-£20K stacked and have it disappear in govt coffers just because it's there? That's very unfair.

Was it Greece that helped themselves to a share of cash in the bank over a certain amount?

[bloomen]

Stay in Bed Instead said:

Was it Greece that helped themselves to a share of cash in the bank over a certain amount?

Cyprus. Greece helpfully stopped people from withdrawing their own money from banks.

[Stay in Bed Instead]

An annual tax on cash savings is not beyond possibilities,

[Stay in Bed Instead]

bloomen said:

Cyprus. Greece helpfully stopped people from withdrawing their own money from banks.

Ah, okay ta,

[voyds9]

Needed some new moccasins the other day. Walked in to SportsDirect.
Only to be told sanitise hands before you come in. You can't try anything on, including shoes
Now I know their policy isn't good on refunds, so I walked straight back out.

Will have to manage longer

[Desiderata]

Stay in Bed Instead said:

An annual tax on cash savings is not beyond possibilities,

Shhhh!!!

Don't give the bds any ideas