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Posted: Monday 20 August, 2012 at 8:58 AM

The economic 'pressure cooker' is boiling over

By: Jenise Ferlance, SKNVibes

    BASSETERRE, St. Kitts - WITH the rising cost of living initiated by the  global economic downturn and the implementation of value added tax (VAT) to offset the Federation's high debt burden, many households can no longer afford to meet their basic needs, moreso their wants.

     

    Since the economic downfall which hit the Caribbean in late 2008 and the implementation of Value Added Tax (VAT) in November of 2010, the cost of living has risen beyond affordability, and with little to no signs of a turnaround, one has to wonder how those living on minimum wages are surviving.
     
    Speaking with two individuals who are minimum wage owners, SKNVibes found their stories of survival to be heart-rending but representing the reality of life in many households.

     

    SKNVibes spoke with Sarah (not her real name), a 28-year-old single mother of two who said that she lives from paycheck to paycheck, and with companies laying off persons because of the bad economy, she often fears for her job.

     

    Working in the Tourism industry, she says, has its exciting moments but for six months out of every year when Tourism is in its slow season, her work hours are cut, which means less money in her purse and less money to take care of herself and her two little boys.

     

    "I make just over $300 per week which is next to nothing but I try not to complain because at the end of the day I am grateful that I have a job; many don't," Sarah explained.

     

    Sarah said that her money is usually gone two days after she gets paid, most of which is used to buy groceries.

     

    She complained of the high cost of food, stating, "I swear the prices of some food [items] rise every week. My grocery bill gets bigger while my shopping list gets smaller."

     

    Sarah said that her other bills are ones that she manages to keep under control which, she claims is not always easy to do.

     

    When asked what she does in cases of sickness, Sarah said she prays that neither she nor her children fall ill because often times she is not in a position to see a doctor.

     

    "If my children or myself get sick, the first thing I do is call my mother and ask her for one of her old time remedies. If the situation is bad I would go up to the hospital and sit in out-patients for the couple of hours because no matter what, I cannot afford to pay a doctor. I often pray that sickness doesn't hit my little family.

     

    When asked about child support, Sarah said that her children's father pays whenever he sees it fit and that she does not make a fuss because he purchases the children's necessities when needed.

     

    "He does not like putting money in my hand so most of the time I would tell him what they need and he buys it."

     

    SKNVibes also spoke with a teacher who claims that her salary could barely extend to cover all of her expenses along with those of her son's and daughter's.

     

    "Every month when I get paid, I have to consider which bill I can put off paying or which bill I can pay less of so that I can use the remainder to pay another bill, because no matter how I redo my budget, the money is never enough to stretch and pay for everything," the teacher explained.

     

    She too complained about the high rise in food items stating that often times all she worries about is how she is going to feed her children.

     

    "So many times I stand in the kitchen wondering why the cupboards get empty so fast. So many times I go to bed with just some bush tea because I have to make sure food is there for my children the next day. Most of the times I only eat to make sure I have strength to teach. Imagine my food bill is higher than my mortgage," she explained.

     

    When asked about child support, the teacher said that she gets $600 per month from her children's father which she uses to ensure they are fed and have everything they need for school.

     

    She said that she has an emergency jar in which she has $100 just in case of an emergency but still prays that there is none "so that I don't have to use the money because if I do, I would have to replace it, which I cannot afford to do".

     

    The teacher said that she hopes to one day go overseas to advance her education but fears that with this economy, she would not be able to do so any time soon as she would not be able to afford the student loan.

     

    Recently Hon. Shawn Richards spoke out about the high cost of living in the Federation, stating that the cost of living has skyrocketed and the persons who are really 'feeling the heat' are the ones who do not work for a large amount of money - the minimum wage workers.

     

    He gave an example, stating that he recently walked through a supermarket and took note of the prices of eleven items that persons use on a regular basis and was surprised at the total when calculated.

     

    "I went to the supermarket recently and checked the prices for eleven items and those items came to $131.93. If you take someone who is living on minimum wage of $320 per week, even without taking out Social Security, it means that that person would be left with just about $100 from that week's pay check. One has to wonder how these persons actually survive," he said.

     

    The Parliamentary Representative said that the food items were not the only issue minimum wage owners had to deal with, noting that the high cost of electricity, mortgage, bus fare, and even doctor fees are also issues they have to face.

     

    Richards said that something needs to be done to combat the high cost of living, even with the understandable economic downfall, because the poor people are the ones that are feeling the brunt of this.

     

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