While Canberrans are feeling the pinch of higher living costs, spare a thought for the local business owners who are working through a very lean period.
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A drop in discretionary spending hurts many of the locally owned retailers in this city, while the money spent on absolute necessities less frequently lands in the till of a Canberra business owner.
The Canberra Business Chamber this week sounded the alarm over trading conditions, releasing a survey of its members that found more than a quarter of respondents expected their business would shrink in the next year.
This was a sharp rise from the 13 per cent of respondents who said the same thing in the chamber's September quarter business survey.
The Business Chamber's survey results mirror the experience of traders in Braddon, who have spoken of trade falling over the previous year by 25 per cent in some cases.
While Lonsdale Street may be one of Canberra's busiest dining and shopping strips, the challenge to find a car park there does not mean all visitors are spending like they used to.
On the surface, Canberra's economy may appear strong. The unemployment rate is low. The capital's residents enjoy, on average, high incomes. The public sector is a resilient base of employment.
Scratch through this, however, and it becomes clear that all is not well in the capital's economy. There are still tough times ahead, which the Business Chamber warned could translate into higher prices for consumers as businesses seek to cover growing costs.
It's a difficult cycle to break.
Canberrans would do well to support local business where they can and as best they can. Spending in this way should be seen as demonstrating a kind of civic pride.
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A strong small business sector makes this city more vibrant and unique; it means money reinvested in the capital.
The federal and territory governments do have a role to play in supporting local businesses, particularly when the economic outlook is shaky.
But those governments' task now must be to smooth the path for business operators as best as possible. They ought to consider carefully the regulatory and tax burden they place on businesses.
However, taking action to artificially prop up businesses that do not have the strength to withstand the ravages of the free market will do this city no favours.
The direct handouts which got businesses through the shock of the most acute COVID-19 era crises were the right choice for those circumstances.
But now different thinking is needed.
