Shopping at Home Matters

The Bahama Journal Editorial


We wish we could – at the evocation of the word – get Bahamians to shop at home. From at least one perspective, shopping at home might and could be equated and totted up as if it was akin to a genuine civic virtue.

While we here at JCN are obliged to comment on what is happening in the economy; we too are obliged to note that, there are things we – as Bahamians – can and should do in order to keep this country’s economy afloat.

Each Bahamian and each resident can and should do their utmost to shop at home; remembering as they do that a dollar spent at home by each and every one of them translates into jobs retained or new jobs created.

Things –as they say – are still tight in the United States as that great nation struggles to get up from the direst of ravages caused by what some pundits have described as the Great Recession.

One indicator of just how tight things are can be gleaned from statistics showing that, tens of millions of Americans who are out of work will remain so for at least the next five years.

But for sure, the greatest indicator of all are those statistics that suggest that a Bahamian economy that is tethered to do that of the United States is in need of some new boost.

Here we can and will cite, some of what Mr. Khaalis Rolle has had to say on the matter at hand; this with many Bahamian companies in the private sector "on the brink" of failure, and many others holding on in the hope of a Christmas boost.

With sales down as regards consumer demand in some instances between 20-30 percent; Rolle asks rhetorically and plaintively: "From a sales standpoint, if you take 30 per cent of gross revenues away, this 20-30 per cent from off the top line, and calculate the average net return of around 12-15 per cent, it's extremely difficult to see where companies can remain profitable.

And for sure, here debt servicing becomes a very difficult proposition; it becomes very difficult to service debt.

In addition and as we understand some of what he had to say, the record suggests that, [Mr. Rolle - without mentioning the $2.6 billion Baha Mar project by name] again questioned whether MPs and policymakers "fully understand" the urgent need for a "catalyst" to revive the economy.

Here we go a step further, and note that, things are bad and now we hear say that they may go from bad to worse.

In this regard, it is quite interesting to note and take to heart some of what Rolle as president of the Chamber of Commerce suggests as he indicates that, “The consumer demand slump has made it "extremely difficult" for most Bahamian companies, whose net returns on investment average 12-15 per cent per annum, to remain profitable…”

We also hear what the Chamber president has to say when he notes that, this nation might be "five years away from beginning to see meaningful economic recovery".

In addition, Rolle describes this recession as "infinitely worse" that the post-September 11, 2001, 'short, sharp shock' to the Bahamian economy…” And yet again, we note that the same Khaalis Rolle recently told one major paper that, “…that using the 36-48 months that it took this nation to completely recover from those events as a benchmark, it seemed that the rebound from current events might take up to five years…]

This is an inordinately long time.

And for sure, with Christmas in the air –as the old saying puts it – Bahamians are doing whatever they can in order to enjoy themselves in the days and weeks ahead.

And as some of them are wont to do, some of the time they have will be spent in sprucing up their homes, buying presents and otherwise, making themselves ready for the arrival [so to speak] of a long-awaited king.

Indeed, such is the largeness of the upcoming season - in terms of what it means not only in the realm of our shared Christian faith; but for the men and women who happen to be businessmen and women.

These business types are the ones who can be expected to hire more labor in festive times like these; and for sure, they can be relied upon to help stimulate allied areas of the economy.

It is this aspect of the matter as it relates to consumer spending and what such expenditure means for the rest of the society.

In short, as money is circulated, it stimulates demand in other areas; with the result that a dollar spent in one area can and does spark results elsewhere in the system.

In the ultimate analysis, then, shopping at home makes good economic and social sense for all Bahamians; that is why today, we encourage it to the maximum degree possible.

December 7th, 2010

The Bahama Journal Editorial

Bahamas Blog International