Australians Are Slipping, Not Spending: The Recession That’s Already Here

Conor's Corner

"This echoes exactly what we're witnessing firsthand at MyMoneyMedic—real Australians are barely managing to keep their heads above water. How much louder does the warning need to be before authorities act? Our quality of life is eroding, and the private sector is buckling under the weight."

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At MyMoneyMedic, we’re on the frontline of the financial stress epidemic—and the latest data confirms what we already know: Australian households are not just struggling—they’re sinking.

According to a recent report by Macrobusiness, the Reserve Bank’s aggressive interest rate hikes have crushed household spending power, pushing Australia into what many now call a recession in everything but name. Despite the absence of an official recession label, the lived experience tells a much darker story.

Retail sales are stagnant. Wage growth is sluggish. Mortgage repayments are at historic highs. And while inflation may be easing in the macroeconomic sense, it hasn’t budged in the real world of supermarket aisles, petrol stations, and rent statements.

People aren’t just cutting back on luxuries—they’re rationing essentials. At MyMoneyMedic, we see clients skipping meals, defaulting on bills, and dipping into superannuation just to survive. The so-called “resilient consumer” narrative has collapsed. What’s left is financial triage.

The pain is especially acute among working families and the self-employed. These Australians don’t show up in unemployment stats, but they are deeply under pressure—carrying heavy debt loads, juggling rising costs, and unable to keep up with the basics of life.

The private sector, too, is on its knees. Small businesses are struggling with reduced foot traffic, higher costs, and tightening credit. Confidence is evaporating. This is a systemic issue, not a seasonal slowdown.

We must ask: when will policymakers act on what real Australians are living through? Band-aid responses and optimistic forecasts aren’t enough. We need structural solutions—starting with genuine cost-of-living relief, fairer housing policy, and stronger mental health support for those under financial strain.

This isn’t just about economics anymore—it’s about preserving our quality of life.