Affordability is not a hoax.  It has become a major issue in many countries in  the Caribbean and the Americas due to the misguided policies of the Trump administration.

Since  his return to the Presidency of the United States, Donald Trump has increased tariffs on imported goods from many countries around the world.  He has been trying to convince his followers that the U.S. economy is strong, even though prices have been increasing. The tariff policy has caused the increase in prices of goods which affected the cost of living, not only for Americans, but for consumers in countries which import goods from the United States.

In The  Bahamas, the Leader of the Official Opposition Michael Pintard has now added the word “affordability” to his vocabulary and political rhetoric.  He told reporters this week, “the issue is whether or not the government is acting in the best interest of the Bahamian people, addressing the affordability issues. Persons are struggling to keep the lights on, to find shelter… and to put food on the table.”

However, Pintard should know, like thousands of Bahamians, that the Davis administration has been proactive with a number of initiatives in the last several months to reduce the cost of food.  It has eliminated or reduced duty on a number of imported food items. In addition, the present government has eliminated VAT on a range of products in foodstores. 

The attentive public is aware that The Bahamas has a residual economy and imports inflation from The United States where some 90 percent of the food imported in The Bahamas is obtained. It is not lost on well-thinking consumers that there is also a high cost of freight on the imports which is passed on to consumers. 

You don’t have to be formally educated to know that if Americans are paying higher prices for groceries due to the imposition of higher tariffs, the cost of food will be higher in The Bahamas. 

On Wednesday the Chairman of the  U.S. Federal Reserve Jerome Powell viewed recent broad tariffs in that country as a primary driver of the current inflation overshoot, causing a one-time price increase rather than sustained inflation, but creating an unusual economy with high goods prices and potential labour market weakness. 

Powell described the U.S. economy as “very unusual,” navigating high goods prices inflation from tariffs alongside potential market shifts.

There is no doubt that many Bahamians are struggling  as inequality in income and wealth is  at historically high levels in the western world.  Climate change is accelerating and is responsible for financial pressures on governments. Devastating hurricanes in many countries in the Caribbean, including The Bahamas have made governing onerous for those in power.  However, we believe that over the last four years the current administration has been able to steer the ship of state in ways to deflect some of the contrary winds in geopolitics to the benefit of the Bahamian people.

At moments of danger and uncertainty, it is usually the task of governments to protect and help them navigate change.  We believe that the majority of the Bahamian people believe that the government has worked hard to meet pressing challenges, including the rising cost of living, climate change, and the disruptions of it. 

At the invitation of King Charles III of England, Prime Minister Philip Davis was invited to  Britain to participate in a high-level briefing by the Sustainable Markets Initiative.  The briefing focused on private capital mobilization to support global energy transition efforts, climate action, and innovative financing arrangements, including debt-for-nature and debt-for-climate mechanisms. 

The engagement brought together global financial leaders, multilateral development banks, and senior representatives from private finance institutions to discuss concrete actions that can accelerate investment flows into climate-resilient and sustainable development.

This itself should speak volumes of Mr. Davis’ leadership and the respect which he enjoys in the global community for his efforts in promoting climate action.

The Bahamas is at an inflection  point, one in which it is addressing what many understand to be real problems while transforming the economy.

Many Bahamians understand the challenges and appreciate that the government is responding adequately.