With Kamala Harris promising price controls if elected., we need only look 90 miles south to communist Cuba to see what a disaster they are and how it helps keep the Cuban people in the chains of tyranny. The Castro dictatorship does not use price controls to help the Cuban economy or the people, but to maintain itself in power and quash those who may challenge them. It wouldn’t be any different in America.
Cuban American economist Carlos Martinez explains in Cubanomics:
Price Controls in the Cuban Sphere
How Cuba’s price controls are pushing entrepreneurs to the brink.
Some time ago, I wrote an article detailing how price controls not only lead to shortages but also force many Cubans to engage in black markets to get their bundle of basic needs.
At the time of writing this piece, Cuba did not have any private enterprises operating on the island. Moreover, self-employed individuals were also subject to price controls.
In the past two months, recent developments in Cuban economic policy have led to many changes. Effectively, the Cuban regime is backtracking on its “market reforms” and re-establishing the state’s dominance over market forces. Nora Gamez Torres effectively communicated that:
The Cuban government has announced new measures, including limiting wholesale trade by the private sector, that officials say would “correct economic distortions” but will likely exacerbate shortages and worsen inflation in the midst of a severe economic crisis.
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The regulations come after the government imposed price controls last month on some food products sold by the private sector, which is already causing shortages.
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Cuban economist Pedro Monreal, who lives in Spain, said on X that the restrictions on wholesale trade could favor big private sector players with connections to the government.
Put differently, the intention behind these regulations was to restrict what we might call the “seller on the streets” — that entrepreneur who does not have a small or midsize enterprise and is trying to survive under the new regulations.
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