When electors say it is the “pocketbook” issues that move them the most when deciding who should have their vote, believe them. The high cost of living is a concern that appears to be overriding most citizens’ unease about other issues.
As the United States of America (USA) presidential election draws closer, the Democratic candidate Kamala Harris is challenged to defend her period in office as the vice president to President Joe Biden.
The USA is enjoying record levels of employment (full employment), while the economy is still on a growth trajectory and even higher than first projected. For the average American, the decision by the US Federal Reserve to drop interest rates will be a desirable move as it will be reflected in lower mortgage rates and lower credit card interest rates.
As is the case in Barbados, the job market is robust for certain sectors such as construction and food and beverage. The result has been an active market for imported labour.
On many of our local job sites, it is not uncommon to come into contact with workers from Jamaica, and even Mexico, who are filling the labour deficit that exists in the economy.
Even with all the encouraging macroeconomic news, when one drills down, the question must be asked, ‘just how much of this great economic data is translating to tangible positive effects in households?’
Standard & Poor’s, in a recent review of the US economy, highlighted some important developments.
“Real income growth has softened, and there are signs of slowdown in discretionary consumption,” the global rating agency outlined.
What does this mean for American citizens? It essentially signifies that inflation is still eating away at people’s income and, as a result, Americans are doing less spending on things that are not necessities.
So, despite all the great plans that the Democrats have for Americans – including protecting reproductive health rights, ensuring that citizens are able to vote freely, protecting Obamacare, and ensuring the continued growth of the world’s largest economy – a great section of the population is still worried about inflation and the increased cost of basic goods.
It is a challenge to combat the rapid flow of lies from former president Donald Trump, who has mastered the art of attributing blame for anything to his political opponents and critics. The criminally convicted presidential candidate is a salesman extraordinaire who has exaggerated the state of the American economy and created doomsday scenarios if he is not reelected.
For Barbadians, the cost of living is a real pain point that is impacting people’s stress levels, their decisions about where and how they spend their money, whether to have children, whether they can risk moving out from the family house and go on their own, and their ability to build a comfortable nest egg.
The other social issue associated with the cost of living is the impact on people’s feelings of self-worth and contribution to society.
A recent New York Times report reflected on the real-life impact of the high cost of living. Political and social instability develops quickly and an economic challenge becomes a political and security concern.
In Kenya, France and even in the Caribbean nation of Martinique, residents have been protesting in the streets to call attention to rising prices.
Two of the island’s largest trade unions have joined the citizen-led protests. Added to the mix has been the controversial decision of the French government to send a feared anti-riot police.
Protests against the high cost of food in the French dependency, when compared to the situation in France, have led to violent clashes with law enforcement. Vehicles and buildings have been burned and scores have been injured including police.
Martinique’s France-appointed prefect, Jean-Christophe Bouvier, announced a 9 p.m., to 5 a.m., curfew that was extended to month end and was intended to protect the population and businesses and restore law and order.
We outline this to indicate rising costs, particularly for food and basic utilities such as electricity, water and telecommunications represent a serious issue that political leaders must address.
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