By James M Bodden III

One of our incessant plights as a small, fragile and tertiary services-based economy is that we are ever dependent on the private infrastructure for our supplies, pricing, and essentially, our salvation. We have no natural resources to fill our needs. We have to solely remain on what is imported by the private economy. It is because of this that we are subject to their pricing and supply.

Essentially, we have to pay what they wish to charge. It is true that this is just natural business but at this current time we do not have the luxury of relying on just prices from our local private economy. Our entire country is solely based on the will and production of private companies; this may have worked previously, but in our current financial crisis, the people of the Cayman Islands need a little more security than what we have received thus far.

The government should enlist the ESO (Economics & Statistics Office) to initiate a study to determine what is the true cost of the needed products (groceries, essentials, etc.). With this collected data, the government could enact price controls over such items. These would range from electricity, gas, food items, water, etc.

Within each industry there would also be a blanket price control for that particular industry, for example; mechanic work, construction cost, etc. Such an initiative would not be meant to harm any private business or manipulate our free market economy but unprecedented decisions to save our country’s economy.
We would simply be adjusting the profit structure to ensure that our people receive economic justice from the various oligarchies that control supply and pricing throughout the Cayman Islands. It is because of these various oligarchies that our economy has become so fragile and bloated. With price controls, the economy would strengthen because of the increase of disposable income and consumption.

Such key areas as fuel cost, utilities cost and food cost would be the key areas for setting price controls because these are the areas of greatest cost and of most importance. Seasonal price controls could be set regarding other areas of the economy; such as construction materials, automobiles, or particular consumer goods, but this would be on an individual and seasonal basis as required.

To make such price controls more feasible and appeasing to the private economy, the government could issue assurance bonds (over time payment) for loss of profit to debt ratio to secure and ensure supply demands and relationships with overseas suppliers.

Another method to guarantee successful private co-operation would be to relax duties, charges and fees as per particularly affected areas. Such inclusion would reassure private industry as to government’s intentions and purpose for a price control initiative. The aim would not be to completely control the economy but to lessen the financial prison and subjugation that many people now find themselves within.

Sometimes in a country’s economic history, certain steps have to be made for the longevity and stability of the economy. In such cases, decisions made are not made to harm or diametrically affect any aspect of the economy but it may be required for the overall economy to shrink and be concentrated. When this is necessary, those that have built the economy and serve as main sources for supply are those responsible for the protection and vitality of said economy. When speaking of price controls, we simply speak of economic responsibility and security.

Our economy, essentially, is very fragile and somewhat artificial. With our lack of natural resources, natural supply and extensive industry we are given no other choice but to adjust our economy as needed. We do not have a strong enough economy to absorb or survive extensive inflation and loss of purchasing power; as such, we must all adjust to the times and the situation.

Price control is one way to secure economic stability, while securing overall stability, inclusion and consumption. We should be cognizant of the fact that these Islands are based on oligarchies – a small number of companies that control economy. These oligarchies have made their share from our uncontrolled or unmonitored economy. If the economy crashes, these oligarchies will also crash. If we combine efforts and work together with a little sacrifice, then the country and its economy will have its longevity and stability, as will the country.