Editorial

Price increases and natural disasters go handin-hand. The principles of supply and demand say some increases are to be expected and consumers say increases that are too large are price gouging.

We tend to think that those who gouge are the winners, but they are not. Disasters represent bad business for everyone. Gouging might fill pockets in the short run, but it is damaging to long-term spending.

Nowhere is this more true than with rent gouging – exorbitant rent will discourage people making the Cayman Islands their home, hampering the economic activity we need to recover.

This doesn’t mean landlords should keep on asking pre-Ivan rates. Rent increases in a free market economy are inevitable and even necessary. One shouldn’t meddle too much with the forces of supply and demand either, if the Islands are to remain an attractive foreign investment. One should also understand the need for owners to get a healthy return on their investment.

But consider the larger reality for those living here now: Job security is tenuous, car payments are due (in some cases, on cars that don’t exist anymore), and price increases are proliferating. It will be a challenge to celebrate Christmas with the carefree mindset that we have enjoyed in the past.

Spirit appeals to landlords to dig into their social consciences and be sensitive towards tenants’ precarious financial situations. Landlords and other vendors may want to consider that their profit margins, in this time of austerity for us all, may not necessarily hold – from both ethical and good business perspectives.

We have already seen so many hands of friendship and help being offered from all over, now would also be the time for landlords to recognize the part they can play in the recovery process.

We have heard stories of big-hearted owners giving tenants rent abatements. We could only hope that this is a trend we will see more of.

By accepting smaller profit margins now,landlords will reap rewards later when Cayman comes back stronger than ever.