Tiny
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Post by Tiny on Jun 18, 2020 15:44:38 GMT -5
I thought this article explains what I've been thinking: That this is recession effects the service sector more than any others and even though I'm OK with my "corporate" job - I'm not trickling down much if any money to the service sector. (not that i use to spend a lot on that before the Pandemic). www.msn.com/en-us/money/markets/the-rich-cut-their-spending-that-has-hurt-all-the-workers-who-count-on-it/ar-BB15Bn My "arts" season tickets have had all programming canceled thru January 1st. I don't follow "sports" - but I would think that perhaps there won't be stadiums indoor or outdoor filled with spectators this summer or even into fall or winter. A gaming convention I was going to go to this summer has also been canceled. (I was seriously considering spending the Big Bucks and getting a hotel room for the 4 day at the convention center. ) Even when I go on a "budget" one or two nights at a hotel 30 minutes away from the convention center - I'm still spending quite a bit on food/drink and products/fun stuff and parking. There are a lot of service jobs or "seasonal" jobs that won't be back soon... maybe not until 12 months or more from now. The "haves" will have more money when this is over (all the money they didn't spend on incidentals and entertainment) and the "have nots" will have less -as their jobs/income vanish.
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pulmonarymd
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Post by pulmonarymd on Jun 18, 2020 16:06:58 GMT -5
Exactly my experience as well. Have a list of things I would do if things are under control. But if infections stay at a rate higher than I am comfortable with, I will stay home and not spend. Would like to visit my 2 kids, go to the beach, go out to dinner weekly, go to shows, our summer concert series, etc. Some are canceled, but some of those things are possible, if the infection rate isn't too high. So, my spending will be a fraction of what it might be. Reason why the economy will not bounce back quickly. In addition, my son's summer job is up in the air, so I will need to give him more support this academic year.
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Tiny
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Post by Tiny on Jun 18, 2020 16:24:42 GMT -5
My employer has pushed performance reviews (raises, promotions, merit bonuses) off until after the 2nd week in July. Normally the reviews would take place between now and the end of June. the reason is "we are paying close attention to what is going on in the current work environment". Basically, this gives my employer another 4 weeks to decide to give raises, promotions and merit bonuses. When the things that I do spend money on in the late fall and winter (3 to 6 months from now) started saying they were 'canceling" the season or the event - I realized we are in it for the long haul. Even if a 'Miracle' happens and Covid19 vanishes in July or August - the stuff thru the end of the year is still pretty much not gonna happen. I think it's safe to say all the holiday events (christmas parties,etc) aren't going to happen. And if the lower end of the wage workers aren't earning come 4th quarter 2020 (and maybe haven't earned much before that) - what does that do to the Christmas spending that many retailers rely on?
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Malarky
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Post by Malarky on Jun 18, 2020 16:42:33 GMT -5
Twelve restaurants have closed their doors permanently in my town in the past week. Take out followed by outdoor seating wasn't enough to save them.
It's going to be the same for many small businesses going forward.
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Deleted
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Post by Deleted on Jun 18, 2020 16:58:50 GMT -5
I tend to spend more money in the warmer months. I like to be out and about in spring and summer. Not happening this year. And if I’m only going to work and grocery shopping, I don’t need to buy new clothes and/or shoes. At the rate I’m growing, by the time I feel like it might be safe to get out (maybe next summer?) who knows what will fit.
So I’m not rich, but I’m not doing a lot of my normal spending either.
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Deleted
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Post by Deleted on Jun 18, 2020 18:52:46 GMT -5
We cancelled a planned out-of-state group trip ($7,500) and have no plans to rebook. Not booking the German river cruise we'd planned on ($14,000). I'm going to make a significant donation tomorrow to a local little theatre, but won't attend even if they reopen. We're going to our very first sit-down meal next week ($250), a monthly wine dinner at one of our favorite restaurants, but may not do that as often in the future. No haircut, no mani-pedi yet ($100). We don't do pro sports or big name concerts any more. The irony is that now we can afford NFL season tix, but aren't comfy with attending the games in person. Yeah, first world problem
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Deleted
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Post by Deleted on Jun 18, 2020 18:53:40 GMT -5
My travel has been cut WAY back. Anything involving a plane flight is out. Having been burned somewhat when my South American tour was cut short (tour company says they'll have refunds processed by the end of this month, just disputed a hotel charge because they cancelled the reservation and I couldn't get into Ecuador to use it anyway, holding $1,600 in IOUs from airlines, lost $1,600 after I couldn't get to another flight through Columbia to fly home, paid $725 to get out of Bolivia straight to the US) I am VERY reluctant to commit money to any future travel other than the $750 deposit I have on a cruise in October, 2021. (That's on a ship with under 100 passengers so not the Petri dish a mega-ship would be, and they're heavy on outdoors and open air. )
I had travel insurance but nothing was covered- mostly because "government action" was excluded and that would include closing airports to transiting passengers from other countries due to COVID-19.
Two offsets- I had my kitchen countertops replaced with quartz but still have spent $12K less YTD than I did in 2019. The car I just bought last week would bring my YTD spending over 2019, but to me that's an irregular expense- I'm hoping it will last me 10+ years. I guess this was a good year for my old car to fail.
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Post by The Walk of the Penguin Mich on Jun 18, 2020 20:13:21 GMT -5
We dumped a buttload of money into the construction industry right at the beginning of the covid pandemic. We would have had to cut back some, as that was largely cash flowed.
Travel has come to a screeching halt. We have 4 major trips planned for 2020 and 2021, the trips in 2020 were fully paid. The trip in May has been pushed back to 6/21. Next trip coming up is 11/20. I give that about a 50:50 chance of happening.
We had several trips planned to see family this year. Just weekend trips, but the border is closed until 7/22/20. Clueless if the border closure is going to be extended again, but after listening to Canada’s talk radio this morning, I’m thinking it will be.
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GRG a/k/a goldenrulegirl
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Post by GRG a/k/a goldenrulegirl on Jun 18, 2020 20:29:10 GMT -5
Twelve restaurants have closed their doors permanently in my town in the past week. Take out followed by outdoor seating wasn't enough to save them. It's going to be the same for many small businesses going forward. ☹️
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nidena
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Post by nidena on Jun 19, 2020 1:53:10 GMT -5
Well, in the interest of an unbiased statement: If the govt hadn't closed all the businesses, the rich would have had somewhere to spend their money.
Yeah, that would have resulted in more people getting sick but that isn't what the article is about. It's about spending money and you can't blame rich people for not shopping in places that aren't open.
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Blonde Granny
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Post by Blonde Granny on Jun 19, 2020 6:20:51 GMT -5
I don't think it's considered "rich" but the Geek Squad is coming this morning to install a new TV for my sunroom. A few months ago I spent $4K in a new sewing machine....what I haven't done is buy a new car. My entertainment lately has been spending time at the lake with a friend. I am at the top of the list for a new puppy when it's born, and after reading the stories about so many of you with vet bills, I'm thinking I'll need a line item for expenditures after I bring her home.
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pulmonarymd
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Post by pulmonarymd on Jun 19, 2020 6:54:22 GMT -5
Well, in the interest of an unbiased statement: If the govt hadn't closed all the businesses, the rich would have had somewhere to spend their money. Yeah, that would have resulted in more people getting sick but that isn't what the article is about. It's about spending money and you can't blame rich people for not shopping in places that aren't open. That. Isn’t entirely true. Everyone I know is being cautious with their discretionary spending. When you have more, you have more to lose. In addition, wealthier people skew older, putting them at higher risk, you can’t spend if you are dead. There are few places to go to avoid the infection, so why travel. Finally, they are typically better educated, and if they haven’t been drinking the right wing koolaid, better understand the science behind this. They will spend when they feel safe
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plugginaway22
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Post by plugginaway22 on Jun 19, 2020 7:25:45 GMT -5
Where we live the restaurants that have adapted are doing fine. Curb-side delivery, great advertising, workers masked and gloved, spaced out for pick up. We have happily been spending our money at those places. Our favorite Italian place lost our business the first time we saw no masks, no gloves, no distancing set-ups. Worried for our son who has been working at a ski resort/national park the past 6 years. Most guests travel to experience that and this winter things will look very different for sure. So many service workers out of a job right now.
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Deleted
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Post by Deleted on Jun 19, 2020 7:39:20 GMT -5
Well, in the interest of an unbiased statement: If the govt hadn't closed all the businesses, the rich would have had somewhere to spend their money. Yeah, that would have resulted in more people getting sick but that isn't what the article is about. It's about spending money and you can't blame rich people for not shopping in places that aren't open. I agree with pulmonarymd's reply on this. There are planes flying around and travel bargains to be had (Costco sent me an e-mail touting Las Vegas ) but I doubt I'll get on another before next summer. And that's a maybe. I've never been big on restaurant dining, anyway. I don't need clothes- I'm retired and have a few brands made in the US that I trust and can buy on-line if I wanted to spend. At this point the only area where I'd be spending a whole lot more were it not for COVID-19 is travel and that's not really closed. I'm being cautious. I'm also being frugal in areas of lesser importance where I could buy on-line because the market is down and the less I take out of investments, the better.
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pulmonarymd
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Post by pulmonarymd on Jun 19, 2020 8:12:38 GMT -5
Yes, getting on a plane is not something I am in any hurry to do. Too many idiots who refuse to follow guidelines. In addition, the experience has not been pleasant recently, and I fail to see how this is going to do anything but make it worse. If I spend at all, it will be close to home. Many tourist destinations are going to be hurting this year. If their business is anywhere close to normal, look out.
What many people fail to understand is that we should be doing everything to drive the infection rate down now, when we believe transmission will be less efficient. The height and timing of the next wave is in part dependent on the baseline it starts from. The lower the baseline, the less bad the summer will be. Our behavior now matters. The fewer infections, the sooner we get back to normal. Don’t expect that until sometime in 2021.
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Deleted
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Post by Deleted on Jun 19, 2020 8:35:53 GMT -5
Yes, getting on a plane is not something I am in any hurry to do. Too many idiots who refuse to follow guidelines. In addition, the experience has not been pleasant recently, and I fail to see how this is going to do anything but make it worse. If I spend at all, it will be close to home. Many tourist destinations are going to be hurting this year. If their business is anywhere close to normal, look out. BF and I are still planning to drive to Hermann, MO (about 3 hours from here) to go to the B&B I started visiting years ago with my late husband. We'll be in the main house, which has only two suites upstairs. There are two smaller living units, one a former smokehouse and one that used to be the residence of the farmer who moved there after his son and family took over the main house- so few people, very spread-out. Meals will be outdoors till they can install a fancier A/C system. I trust the owners- it's their livelihood and they're at far bigger risk for COVID-19 with people passing through than we are with a 3-night visit. The Katy Trail is still open for long bike rides, BF will be happy to hang out in the room and read, we can hike together and are OK with takeout food for the meals not served at the B&B. We will NOT be hanging out in the bars. We weren't into that before COVID-19. Ever since I started tracking numbers on 5/8, they've had 2 COVID-19 cases and zero deaths in the county (Gasconade). They get most of their guests from Kansas City and St. Louis and I'm guessing that anyone who visits and is later diagnosed becomes part of the stats in their home county, not Gasconade, so I'm not depending solely on those numbers.
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jerseygirl
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Post by jerseygirl on Jun 19, 2020 8:45:13 GMT -5
Travel costs were my biggest category in spending. Now will be spending probably nothing on travel until hopefully a vaccine is developed. I doubt anything will replace that spending. Have been thinking though about a major landscaping in back yard. But I’m certainly not as enthusiastic about landscaping as travel.
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nidena
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Post by nidena on Jun 19, 2020 9:49:35 GMT -5
My 3am post may have not been clear. The people who shut everything down had to have factored all this in. The people who insisted everyone "flatten the curve" are the ones who lead the way for the rich to not spend. The people with money are merely reacting to that. My point is: You can't blame the rich for not spending their money when there were (and still are) numerous contributing factors. Hell, you guys just helped prove my point in that.
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billisonboard
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Post by billisonboard on Jun 19, 2020 10:06:20 GMT -5
... blame rich people ... ... blame the rich for not spending their money when there were (and still are) numerous contributing factors. Hell, you guys just helped prove my point in that. Who is "blaming" the rich?
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GRG a/k/a goldenrulegirl
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Post by GRG a/k/a goldenrulegirl on Jun 19, 2020 10:14:06 GMT -5
... blame rich people ... ... blame the rich for not spending their money when there were (and still are) numerous contributing factors. Hell, you guys just helped prove my point in that. Who is "blaming" the rich? The thread title is "reopening may not be enough to get the "RICH" to spend".
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billisonboard
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Post by billisonboard on Jun 19, 2020 10:22:25 GMT -5
Who is "blaming" the rich? The thread title is "reopening may not be enough to get the "RICH" to spend". Explaining is not blaming.
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nidena
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Post by nidena on Jun 19, 2020 10:22:33 GMT -5
Every article with that title "The Rich Cut Their Spending and that Hurt All the Workers" is blaming the rich in their title.
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NomoreDramaQ1015
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Post by NomoreDramaQ1015 on Jun 19, 2020 10:23:00 GMT -5
Travel costs were my biggest category in spending. Now will be spending probably nothing on travel until hopefully a vaccine is developed. I doubt anything will replace that spending. Have been thinking though about a major landscaping in back yard. But I’m certainly not as enthusiastic about landscaping as travel. I know right? I am thinking about having the carpet ripped up in the sun room finally since we can't go to Colorado this year. It's something I want done but it doesn't feel the same as vacation does. Then add on what we spend on the kids usually in the summer and we're not even close to what we would usually be spending this time of year. Course if I add it up I may have evened things out with my emotional internet shopping. .. we're just not going to kick that rock ..
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countrygirl2
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Post by countrygirl2 on Jun 19, 2020 10:24:02 GMT -5
There wasn't much here before going to be less now. I saw another restaurant in the city closed. I will have to look at the name, can't think of it. We lost Chili's before this. People are out driving around but I don't know what they are doing or where they are going. A couple of sit down restaurants are open, the rest still drive through. It's boring as hell.
We would have had little guy for a month, now I doubt it. We would have gone up to see him but putting it off. The thing is doesn't seem to be and end to it.
Son is on a flex schedule. Once every 3 days. Plus flex work schedule so I'm off tomorrow, telework next Monday and Wednesday off Thursday and Friday.
A nice deal if you can get it. He has been off basically since first of March.
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billisonboard
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Post by billisonboard on Jun 19, 2020 10:28:13 GMT -5
Every article with that title "The Rich Cut Their Spending and that Hurt All the Workers" is blaming the rich in their title. It is simply a statement of fact.
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movingforward
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Post by movingforward on Jun 19, 2020 10:33:46 GMT -5
So far 3 trips this year have been cancelled - NYC, San Diego and Las Vegas. I'm not really going to venture to guess what I might have spent. Typically, I go to 3-4 Broadway shows while visiting NYC, along with eating out, some shopping, and museum visits. We were going to do the VIP experience at the San Diego zoo which was $650 per person. I am really disappointed we didn't get to do that...
I am debating on purchasing season tickets for my city's Broadway series. I just don't know right now... Not to be whiny (okay, I'm going to be) most of the fun has been sucked out of everything right now anyway. There is no way I would want to go to Disney and have to wear a mask in 100 degree weather. I don't want to go to Vegas and worry about having to social distance.
I have to admit this whole thing has been really hard for me because I am not really a person that lets fear dictate my life (unless there is a huge spider standing in my way - LOL). Seriously though, I have never been a doomsday person and generally just go about my business. The way I am getting through this is to focus on the fact I don't want to hurt other people. In other words, I am being cautious because I don't want to pass this to someone that might die from it and not because I am afraid of getting it myself.
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movingforward
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Post by movingforward on Jun 19, 2020 12:13:15 GMT -5
So I wonder if we will have another "roaring 20's" after this ends where there is a bunch of pent up money for people to spend, new businesses popping up, and a younger more liberal generation setting the tone for a new era OR will we have a great depression that takes us a decade or more to recover from.
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pulmonarymd
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Post by pulmonarymd on Jun 19, 2020 12:30:34 GMT -5
The point is that even if they didn’t/don’t shut things down, the rich will not spend. They will not take the risk. Look at how many here are saying the exact same thing. If infections are not controlled, people will stay home. The rich have the most discretionary spending, so that is most at risk
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movingforward
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Post by movingforward on Jun 19, 2020 12:39:51 GMT -5
The point is that even if they didn’t/don’t shut things down, the rich will not spend. They will not take the risk. Look at how many here are saying the exact same thing. If infections are not controlled, people will stay home. The rich have the most discretionary spending, so that is most at risk I am so jealous of New Zealand right now. They are having sporting events with fans, concerts, etc. I know they are a small country with only 5 million people but if we had shutdown earlier and had leadership that took this thing seriously then maybe we could be getting this thing under control and returning back to some normalcy. Instead, we will more than likely spend the next 1-2 years in and out of shutdown mode and dealing with a weird existence.
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justme
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Post by justme on Jun 19, 2020 12:56:09 GMT -5
I usually have a trip every July that runs me around $500 or so depending on what I buy while there.
My friends and I often go on a little trip in Aug/Sept - usually a weekend cruise and that's out now.
I'm furloughed in July and am debating making it a getaway, but a little skeptical because Florida is circling the damn drain.
My family is talking about doing a week about 8 hours away in Nov/Dec.
I currently have a cruise booked in Feb.
I have 5 freaking weeks of vacation to use by May. I don't know what in the hell I'm going to use it with the way things is going.
I've been lazy keeping up with my YNAB but I think overall I've been spending less.
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