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Sunshine Coast Small Business: A Looming Crisis?
04-01-2014, 07:32 AM,
#2
RE: Sunshine Coast Small Business: A Looming Crisis?
Hi Skook

This phenomenon became much more pronounced in the UK after the 2007-2008 financial crash. And forgive me, but as a Canadian/Scot I am going to insist on the UK being that country which is NOT London; how many times have I heard people say "Oh but I was in London last week and..." here in Toronto whenever I try to explain the mess Britain is in.

What happened was this; home equity collapsed by 30% in real terms, 15% unadjusted over 5 years. The effect has been MASSIVE closures in the retail and services sectors (and I mean Massive; at one point, there were firesales in liquor stores, etc, simply because the bank had pulled the plug and the companies were ruined). And a lot of that equity was held by boomers as you say.

However, as we now move to six/seven years after the crash, what's interesting is how both buyers and sellers of goods and services have simply downgraded their expectations. So whereas a restaurant meal for two might have cost GBP 30-50 in Edinburgh in 2007 (without wine) that same meal, with smaller portions and less fancy ingredients, can now be had for GBP 20-40. More specials and offers abound.

Overall, people have survived and -- this bit is anecdotal -- started doing more stuff that costs less, like spending time with friends and family instead of going on fancy skiing holidays, etc. I expect a similar pattern in BC and Canada in the period between now and 2020.

Trust me, some bits of it are truly horrible. But society comes out the other end poorer, yes, but arguably chastened and less pretentious and overblown.

Just my 0.02c!


Jimmy
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RE: Sunshine Coast Small Business: A Looming Crisis? - by JimmyWW - 04-01-2014, 07:32 AM

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