12-13-2018, 11:10 PM
*** 14-Dec-18 World View -- Cuba eases economic restrictions, continuing on path from Socialism to free markets
This morning's key headlines from GenerationalDynamics.com
****
**** Cuba eases economic restrictions, continuing on path from Socialism to free markets
****
![[Image: g181213b.jpg]](http://Media.GenerationalDynamics.com/ww2010/g181213b.jpg)
Shoes for sale displayed on a shelf inside the home of a small business owner in Havana, Cuba, in 2013. (AP)
In the face of popular demand from artists and entrepreneurs, the
government of Cuba has backed down on plans to implement harsh new
restrictions on the private sector.
In July, Cuba announced the harsh controls on private businesses, to
take effect on December 7, claiming that the opening up of some free
markets has fueled wealth inequality, tax evasion and the black
market.
Since 2010, when it became legal to run certain small businesses, life
has been transformed for many people. Around 13% of Cuba's overall
workforce is now self-employed, in areas like tourism and transport.
However, the rapid growth of small businesses was apparently
threatening to Cuba, and in 2017, it began freezing issuing licenses
for some popular business categories.
It appears that Cuba's government is struggling to avoid a total
economic disaster as in Socialist Venezuela, at the same time
pretending to maintain a Socialist façade in its economy. Thus the
government wants people to earn money self-employed in private
businesses, but the government wants forbid a person from making money
in two private businesses, since then me might make too much money.
Therefore, the government announced in July that it would be illegal
for a person to own more than one business license.
So for example, a person renting out a room in his home while driving
a private taxi during the day would be making too much money, and
would be forced, under the new regulations, to give up one source of
income or the other.
So it was a shock that, after years of unyielding authoritarian
government under Fidel and Raúl Castro, the new president Miguel
Diaz-Canel suddenly reversed some of the worst rules on December 6,
just a day before they were to take effect.
The biggest reversal is that Cubans will be permitted to work
in two or more self-employment activities simultaneously.
Another abolished rule had set a limit of 50 seats for private bars,
restaurants and cafeterias. A law requiring many businesses to
maintain bank accounts with a minimum deposit of three months taxes, a
requirement that would have put many people out of business, was
softened to require only two months taxes.
Artists are applauding the delay in implementing another new law. The
law, announced in July, requires prior government approval for
artists, musicians, writers and performers who want to present their
work in any spaces open to the public, including private homes and
businesses. Implementation of the law will be delayed following
protests and social media campaigns by many Cuban artists that it was
another layer of censorship and control over artistic expression.
Miami Herald and Reuters and AP and
Miami Herald
****
**** The unraveling of Cuba's Socialist economy
****
There's a certain amusing irony that Xinhua, the official news service
the Chinese Communist Party (CCP), in a country that is still
officially Socialist (but "with Chinese characteristics"),
congratulated Cuba on rolling back some of the restrictions on the
private sector: "Cuba's government has taken new regulations that will
spur the island's fledgling private sector to ensure it continues to
expand and create jobs, local media said on Thursday."
Indeed Cuba is in the process of abandoning its Socialist economy and
turning to capitalistic free markets, just as China did decades ago,
and just as one Socialist country after another had to do in the last
60 years, in order to avoid catastrophic economic meltdowns. Two
Socialist countries -- Venezuela and North Korea -- did NOT make that
transition, and the disastrous self-destructive results are there for
all to see.
From the point of view of Generation Dynamics, Cuba is in the midst of
a generational Unraveling era, when the harsh rules set up after the
last generational crisis war, in this case the 1960 Cuban Revolution,
unravel because younger generations no longer are willing to tolerate
them. America's last generational Unraveling era occurred in the
1990s, when the country dismantled the post-Depression financial
regulations and opened its foreign policy to Communist countries like
China and Russia.
During the last ten years, the entire Socialist economy
has been unraveling, step by step.
In 2010, when Cuba's economy was in shambles, and president Raúl
Castro announced the end of the Socialist economy.
The government would lay off 500,000 government
workers (Socialist bureaucrats) and privatize many businesses.
In particular, Marx's Socialist Principle Of Distribution ("From each
according to abilities, to each according to needs") was abandoned at
the time, with the announcement: We must reinvigorate the socialist
principle of distribution, to pay to each according to the quantity
and quality of work provided."
Within two years of the 2010 announcement, the size of the state
payroll had been reduced by 20%, and more than 200,000 people had
moved into private enterprise. For the first time, Havana was
population with street stalls selling everything from pirate DVDs to
kitchen implements. There were still many restrictions on private
businesses, but these restrictions are being removed, one by one.
Unfortunately, ending a Socialist economy does not mean ending the
dictatorship. Like Nazi Germany and China, a dictatorship with free
markets is Fascist. Whether Cuba's dictatorship will also unravel and
turn into a democratic government remains to be seen. Xinhua
and Reuters
****
**** Cuba rolls out mobile internet services
****
Another sign that Cuba's hardline control over business is unraveling
is the availability of internet access to mobile phones across the
country. Previously, internet access was limited to state-run
internet cafes and public wi-fi hot spots.
Cuba will offer packages of data data ranging from 600 MB for 7
convertible Cuban pesos ($7) to 4 GB for 30 Cuban pesos ($30). The
average monthly salary for a Cuban is $30 per month, meaning that few
Cubans will be able to afford the service. CNBC and Al Jazeera
Related Articles:
KEYS: Generational Dynamics, Cuba, Fidel Castro, Raúl Castro,
Miguel Mario Díaz-Canel Bermúdez,
Venezuela, North Korea, Socialist Principle Of Distribution,
China, Chinese Communist Party, CCP, Unraveling era
Permanent web link to this article
Receive daily World View columns by e-mail
Contribute to Generational Dynamics via PayPal
John J. Xenakis
100 Memorial Drive Apt 8-13A
Cambridge, MA 02142
Phone: 617-864-0010
E-mail: john@GenerationalDynamics.com
Web site: http://www.GenerationalDynamics.com
Forum: http://www.gdxforum.com/forum
Subscribe to World View: http://generationaldynamics.com/subscribe
This morning's key headlines from GenerationalDynamics.com
- Cuba eases economic restrictions, continuing on path from Socialism to free markets
- The unraveling of Cuba's Socialist economy
- Cuba rolls out mobile internet services
****
**** Cuba eases economic restrictions, continuing on path from Socialism to free markets
****
Shoes for sale displayed on a shelf inside the home of a small business owner in Havana, Cuba, in 2013. (AP)
In the face of popular demand from artists and entrepreneurs, the
government of Cuba has backed down on plans to implement harsh new
restrictions on the private sector.
In July, Cuba announced the harsh controls on private businesses, to
take effect on December 7, claiming that the opening up of some free
markets has fueled wealth inequality, tax evasion and the black
market.
Since 2010, when it became legal to run certain small businesses, life
has been transformed for many people. Around 13% of Cuba's overall
workforce is now self-employed, in areas like tourism and transport.
However, the rapid growth of small businesses was apparently
threatening to Cuba, and in 2017, it began freezing issuing licenses
for some popular business categories.
It appears that Cuba's government is struggling to avoid a total
economic disaster as in Socialist Venezuela, at the same time
pretending to maintain a Socialist façade in its economy. Thus the
government wants people to earn money self-employed in private
businesses, but the government wants forbid a person from making money
in two private businesses, since then me might make too much money.
Therefore, the government announced in July that it would be illegal
for a person to own more than one business license.
So for example, a person renting out a room in his home while driving
a private taxi during the day would be making too much money, and
would be forced, under the new regulations, to give up one source of
income or the other.
So it was a shock that, after years of unyielding authoritarian
government under Fidel and Raúl Castro, the new president Miguel
Diaz-Canel suddenly reversed some of the worst rules on December 6,
just a day before they were to take effect.
The biggest reversal is that Cubans will be permitted to work
in two or more self-employment activities simultaneously.
Another abolished rule had set a limit of 50 seats for private bars,
restaurants and cafeterias. A law requiring many businesses to
maintain bank accounts with a minimum deposit of three months taxes, a
requirement that would have put many people out of business, was
softened to require only two months taxes.
Artists are applauding the delay in implementing another new law. The
law, announced in July, requires prior government approval for
artists, musicians, writers and performers who want to present their
work in any spaces open to the public, including private homes and
businesses. Implementation of the law will be delayed following
protests and social media campaigns by many Cuban artists that it was
another layer of censorship and control over artistic expression.
Miami Herald and Reuters and AP and
Miami Herald
****
**** The unraveling of Cuba's Socialist economy
****
There's a certain amusing irony that Xinhua, the official news service
the Chinese Communist Party (CCP), in a country that is still
officially Socialist (but "with Chinese characteristics"),
congratulated Cuba on rolling back some of the restrictions on the
private sector: "Cuba's government has taken new regulations that will
spur the island's fledgling private sector to ensure it continues to
expand and create jobs, local media said on Thursday."
Indeed Cuba is in the process of abandoning its Socialist economy and
turning to capitalistic free markets, just as China did decades ago,
and just as one Socialist country after another had to do in the last
60 years, in order to avoid catastrophic economic meltdowns. Two
Socialist countries -- Venezuela and North Korea -- did NOT make that
transition, and the disastrous self-destructive results are there for
all to see.
From the point of view of Generation Dynamics, Cuba is in the midst of
a generational Unraveling era, when the harsh rules set up after the
last generational crisis war, in this case the 1960 Cuban Revolution,
unravel because younger generations no longer are willing to tolerate
them. America's last generational Unraveling era occurred in the
1990s, when the country dismantled the post-Depression financial
regulations and opened its foreign policy to Communist countries like
China and Russia.
During the last ten years, the entire Socialist economy
has been unraveling, step by step.
In 2010, when Cuba's economy was in shambles, and president Raúl
Castro announced the end of the Socialist economy.
The government would lay off 500,000 government
workers (Socialist bureaucrats) and privatize many businesses.
In particular, Marx's Socialist Principle Of Distribution ("From each
according to abilities, to each according to needs") was abandoned at
the time, with the announcement: We must reinvigorate the socialist
principle of distribution, to pay to each according to the quantity
and quality of work provided."
Within two years of the 2010 announcement, the size of the state
payroll had been reduced by 20%, and more than 200,000 people had
moved into private enterprise. For the first time, Havana was
population with street stalls selling everything from pirate DVDs to
kitchen implements. There were still many restrictions on private
businesses, but these restrictions are being removed, one by one.
Unfortunately, ending a Socialist economy does not mean ending the
dictatorship. Like Nazi Germany and China, a dictatorship with free
markets is Fascist. Whether Cuba's dictatorship will also unravel and
turn into a democratic government remains to be seen. Xinhua
and Reuters
****
**** Cuba rolls out mobile internet services
****
Another sign that Cuba's hardline control over business is unraveling
is the availability of internet access to mobile phones across the
country. Previously, internet access was limited to state-run
internet cafes and public wi-fi hot spots.
Cuba will offer packages of data data ranging from 600 MB for 7
convertible Cuban pesos ($7) to 4 GB for 30 Cuban pesos ($30). The
average monthly salary for a Cuban is $30 per month, meaning that few
Cubans will be able to afford the service. CNBC and Al Jazeera
Related Articles:
- Socialist Cuba moves to Capitalism, while Socialist Venezuela moves to self-destruction (16-Jul-2018)
- Cuba's new president Miguel Díaz-Canel makes delusional promise to continue Socialist revolution (20-Apr-2018)
- Cuba's seismic shift has global implications (16-Sep-2010)
- From Cuba to China, people worry about demise of Venezuela's Chavez (03-Jul-2011)
- Cuba's shift is similar to E. Germany, Hungary, Poland, others (18-Dec-2014)
- Venezuela's economic crisis is hitting Cuba hard (06-Aug-2016)
KEYS: Generational Dynamics, Cuba, Fidel Castro, Raúl Castro,
Miguel Mario Díaz-Canel Bermúdez,
Venezuela, North Korea, Socialist Principle Of Distribution,
China, Chinese Communist Party, CCP, Unraveling era
Permanent web link to this article
Receive daily World View columns by e-mail
Contribute to Generational Dynamics via PayPal
John J. Xenakis
100 Memorial Drive Apt 8-13A
Cambridge, MA 02142
Phone: 617-864-0010
E-mail: john@GenerationalDynamics.com
Web site: http://www.GenerationalDynamics.com
Forum: http://www.gdxforum.com/forum
Subscribe to World View: http://generationaldynamics.com/subscribe
