From our Bureau of Socialist Economic and Social Justice with some assistance from our Bureau of Dispiriting News From Greatly Admired Latrine American Socialist Utopias
Yeah, Cuba is a hellhole. No doubt about it. And it has never, ever been more of a hellhole than it is now. Exactly a century ago, Cuba was a thriving young republic that attracted droves of immigrants from Europe, Asia, and the Middle East. One of the rumors heard by my grandparents in Spain before they migrated to Cuba in 1920 was that the country was so wealthy that one could find coins strewn all over its streets, because Cubans were so well-off that they needed no pocket change.
Ay! But things are much different now, after 65 years of socialism. And the past two years have been the worst ever, according to many experts.
Loosely translated from Periodico Cubano
Since Miguel Díaz-Canel, Raúl Castro’s successor, assumed power in 2018, inflation has reached alarming levels, drastically reducing the purchasing power of Cubans. According to economist Ángel Rodríguez Pita, the regime’s economic measures have failed to slow inflation, severely impacting consumption.
In a conversation with journalist Mario J. Pentón, Rodríguez Pita explained that although the value of the dollar relative to the national currency has stabilized, the prices of goods continue to rise faster than the dollar and the euro. “Prices are rising faster than currencies, reducing the ability to access consumption with the same amount of money,” he said.
Economist Pedro Monreal shared alarming statistics: when adjusting wages for inflation, the purchasing power of Cubans has plummeted by more than half in just two years. “The ‘Tarea de Ordenamiento’ aimed to lower labor costs and increase wages, but the prices of goods have risen more than expected,” Rodríguez Pita affirmed.
The recent price caps imposed by the regime on imported products by Mipymes, such as chicken, sausages, ground meat, oil, and powdered milk, have led to further shortages. These products are not being sold formally and have moved into the black market. “You arrive at the sales point and they tell you they have the product, but it’s not there; you have to request it informally,” the specialist reported from the Island.
Cuba’s public finances are on the brink of collapse. “The public sector can barely sustain itself, depending heavily on taxes, but the amount collected is minimal,” Rodríguez Pita explained. Public debt has increased, and the state is seeking revenue from the private sector, which is also in crisis. Meanwhile, “there is a strong crackdown on self-employed workers, which is worsening the economic crisis.”
The lack of foreign investment and the decline in tourism are other serious problems. “There is no stable legal framework or guarantees for investors, which has led many to withdraw from the country.”
Given these conditions, Cuba’s economic future looks bleak. “The Cuban government will not solve the problem in the short term; the crisis will worsen in the coming months,” predicts the economist, warning that there is even talk of a possible privatization of certain state sectors as a desperate measure.
The international situation with Cuba’s traditional allies like Russia and Venezuela could accelerate the decline of the communist regime. Russia continues to drain its finances in the imperial war unleashed against Ukrainian territory, and in Venezuela, Nicolás Maduro is facing a severe internal crisis due to the electoral fraud he perpetrated on July 28th.
Even if Cubans had more Cuban money to spend, that’s not what the regime wants. It needs real money, the kind that comes from the “diaspora,” so as far as it’s concerned, the amount of Cuban money the natives have is irrelevant–just as they themselves are irrelevant, except as procurers of money from abroad.