Since the socialist revolution in 1959, Cubans have suffered through shortages and poverty due to the corruption and incompetence of the Castro dictatorship. And the situation is about to get a lot worse. Over the decades, with every downturn in the Cuban economy, Cuba’s Communist Party has doubled down on the failed socialist policies that caused the decline in the first place. 2024 will be no different, with the regime poised to launch its latest policy that is sure to fail: the “inflation bomb.”
The situation is so dire that even Reuters can’t ignore it:
Cubans are preparing for a new wave of inflation after the government last week rolled out details of an austerity plan that economists say will touch nearly every facet of the communist-run island’s already flailing economy.
The measures – which include price and tax increases and cuts in subsidies – will slow a soaring budget deficit forecast to exceed 18% of gross domestic product and set the stage for growth, according to Prime Minister Manuel Marrero.
Authorities have already announced gas at the pump will jump nearly five-fold on Feb. 1. But some economists say less visible government price increases such as on wholesale fuel and moving freight, as well as sales and import taxes, are sure to ignite substantial hikes on most products and services at the retail level.
“In economics, such prices are not increased in one area without affecting others,” Cuban economist Omar Everleny said in an interview in Havana. “And in general they are passed on to consumers. I think they will increase 400% to 500%.”
Reuters spoke with several Cubans in Havana who said prices were already rising following the announcements and in anticipation of the price hikes – and were set to soar further in the coming weeks.
It is obvious to Cubans, and anyone who cares to look past the propaganda, that the communist Castro dictatorship’s decisions are all solely based on ensuring its own survival. They have no interest in helping the Cuban people. They are only interested in maintaining power. This is how socialism works.
If inflation gets so high that the “dia$pora” cannot compensate for it, things may get sticky. We shall see.
Things just keep getting better and better. The old solution is to kind new patrons. Or better said, the Cuban government is a pimp, with the Cuban people as its whores. It needs more clients for its whores. The problem is the whores are all old and disease ridden. Not much demand.