The Tribune

Minister of Tourism, Investments and Aviation Chester Cooper says Bahamians do no save or invest enough, and increasing savings and investments is critical to national growth. He said less than 30 percent of Bahamians contribute to pension plans and less than eight percent invest in securities. He went on to say his Ministry would run a financial literacy campaign in order to encourage saving and investment among Bahamian people. It is, of course, true, that we need to save and invest more than we currently do and that financial literacy is important, but there is not enough attention on the main issue - low income.

There are many people who are not able to save money. They are not spending recklessly or being irresponsible with the resources they have. They do not have enough. They are either struggling to make ends meet, or still trying to figure out how to even do that. All of the people having this experience are not living below the poverty line. They are not all making minimum wage. Many of them are people we see, work with, and speak to on a regular basis.

There is usually no way to make a distinction between people who are financially comfortable and those who are facing challenges. Some people have cars because there is no other way to safely get to and from work every day, and their expenditure on gas frequently cuts into their grocery budgets. Some people are well-dressed because they have been lucky to acquire a lot of basics and a few outstanding pieces. Some people send their children to private schools because they have help from the other parent, family members, or scholarships. Some people go out for lunch every day because they have a few dollars each day, but not $100 to buy cooking gas.

It is easy to make judgments. We can watch people’s spending and make assumptions about their sources of income and their decision-making processes, but we do not have all of the information. We all want to be able to buy a car battery if ours dies. We want to be able to pay for a doctor’s visit if we are feeling unwell and to have no problem buying the prescribed medication. We want to send our children on the field trips, pay for the pizza parties and participate in the gift exchanges. We would like to help our retired parents buy a new refrigerator when the old one just stops without warning. We want to donate to that co-worker’s fundraiser to get the medical care they need. To get something to wear for the funeral, to stock up on toiletries at a local wholesaler, to take a professional development course. To do these things, we need to have money. Not just a pay cheque or direct deposit, but money we can touch. Money we can spend. Money that does not already have another job to do, like paying the electricity bill.

Doing these things requires disposable income that is higher than our expenses. Having an income higher than our earnings is requirement for saving money.

“Financial literacy” gets thrown around quite often. People aren’t saving money? Financial literacy! People aren’t keeping up with their bills? Financial literacy! People aren’t making investments? They need financial literacy! Young people using credit cards to stay afloat? Financial literacy!

While financial literacy is important - and ought to be a part of the school curriculum and offered by institutions we regularly engage (including workplaces, financial institutions, and faith-based organizations) - it will not eradicate poverty or the financial struggles of people receiving low incomes. There has to be real intervention. We need to make it possible for people to earn enough money to live while challenging and uprooting systems and practices that are financially oppressive and predatory.

Conversation about changes to value-added tax have significantly quieted now that they are officially in place. The issues still exist. There is now tax on bread basket items. These items, essentially for every household, now come at a higher cost, disproportionately impacting low-income households. The decrease in value-added tax from 12 percent to 10 percent does not make up for this increase on bread basket items which are supposed to low-cost due to the high rates of purchase of these necessary goods.

Value-added tax on bread, rice, flour,and baby food is absurd at any time, and especially now as so many are struggling through the pandemic that has significantly impacted employment and earnings while responsibilities remain the same.

The change in value-added text is an example of a sweeping change assumed to be minor because the specific conditions of a group of people in situations of vulnerability where not properly considered, if at all. If we are going to talk about “financial literacy,” perhaps we need to start with the people who are making national decisions that affect the (financial) lives of the people in The Bahamas.

There seem to be a set of circumstances under which the government understands the need to spend money for the benefit of the country. For a time, there was the national food task force and money allocated to assist people impacted by the COVID-19 pandemic. There was a time bread basket items were VAT-free. There was even a brief period within which it was recognized that menstrual hygiene products are necessities and should be tax-free. Now, these obvious points are being challenged and the suggestion is we need to figure it out for ourselves. This, while we watch the memes fly about Expo 2020 in Dubai which, by all accounts, has not been worth the $1m commitment by the Cabinet.

Communications director in the Office of the Prime Minister Latrae Rahming said: “We believe and we maintain our view that we are going to give The Bahamas the exposure required on the global stage. It is a justified investment when we give our people exposure on the world stage so people could see the talent.”

Bahamians love to show off. We enjoy the spotlight when we are doing well. Give us Shaunae Miller at the Olympics, Sir Sidney Poitier on the big screen, Jonquel Jones in the WNBA and Buddy Hield in the NBA, and and count on us to argue with anyone from anywhere until it is agreed that we have the best beaches in the world. We love to look good. Let’s not forget, however, that we want to live good too.

If our presence at Expo 2020 in Dubai brings benefits to the country - benefits that we will all see and feel - great. Bring it on. That cannot, however, be a replacement for food, water and shelter. We cannot be expected to celebrate a large delegation traveling to Dubai, a seemingly lacklustre pavilion and ill-suited performances while people directly impacted by Hurricane Dorian and COVID-19 receive less support and are expected to fend for themselves.

What is the point of promoting The Bahamas on the international stage to the tune of millions of dollars (when including the other investments mentioned with regard to Expo 2020) when so many people in The Bahamas are left to figure out how they will pay rent and electricity bills and buy grocery when they are still unemployed or underemployed as a result of the disasters we are still reeling from and experiencing now? Is there a financial literacy course for that?

We cannot accept rebuke for low or non-existent savings or investments when people are challenged to meet their most basic needs. We cannot accept the message that our financial problems are ours to solve, individually, especially when we are trapped in the old promise of tourism - which has proven volatile in the most trying times - that has not been addressed by any government administration. We cannot expect financial literacy to give us what we need to have healthy financial lives.

We have to demand more of the government. It is its responsibility to ensure our basic needs are met. It needs to look at the Bahamian economy and the opportunities for growth. It needs to address the longstanding issue of minimum wage. It needs to acknowledge the informal economy and the needs of informal workers. It needs to address the specific needs of people in situation of vulnerability including women, people with disabilities, LGBTQI+ people, elderly people, and migrant people.

It unacceptable to spend millions on the international stage while withdrawing much-needed financial support from the Bahamian people while promising to educate us about money. We already know some of the most important things about money - too many of us do not have enough of it, and the way we are being taxed and the way the government is (not) providing services does not redistribute wealth to move us toward equity. We need to meet our most basic needs first.

There can be no saving or investing before we have the money we need today. That is financial literacy 101, and the government needs to start there.

Recommendations

1. Visit Sixty2Sixty Art Gallery’s website to view images from current and past exhibitions. Coloured Bahamas by Kenel Augustin, Artist Block by June Collie, and Dear Diary, During the Pandemic I… by Ashley Cooper are among the exhibitions you can view from the comfort of your own home. Currently on display in the gallery on East Bay Street is Preston Hanna’s Cay to Serenity, focused on finding inner peace. Stop by the gallery and/or visit sixty2sixtyartgallery.com.

2. Support the Bahamas National Youth Choir (BNYC). Make a donation, share videos, and encourage booking agents and event organizers to consider the BNYC. There have been many expressions of disappointment about the exclusion of the BNYC, and we need to remember that there are ways to support it beyond the conversation about Expo 2020 in Dubai. The same can be applied to a wide range of issues and incidents that draw ire and need more positive interventions. Let’s start here. BNYC needs support getting to Carnegie Hall, and donations can be made to its bank account at First Caribbean International Bank, Shirley Street branch, account number 27038410. Contact BNYC at bnycsecretary@gmail.com to find out how you can support its work in other ways.

3. Get orange essential oil. January tends to be a difficult month for many of us, whether it is because of the weather, financial issues, struggling to keep resolutions, or the stress of a new calendar year. Orange essential oil is great for boosting moods and adds a pleasant scent to the room. Use it in a diffuser, make a simple room spray, or create an oil blend to rub on your wrists, behind your ears, or on your neck. Its other uses include relieving stomach aches, reducing pain, and increasing alertness.