American Elephants


I Think The Times And Obama Are Wrong. Can I Possibly Be Right? by The Elephant's Child

Gutted Yellow Building Havana

The New York Times is, as usual, a little off. When ideology trumps journalism, you get these embarrassing slip-ups. The headline is “As Cuba Shifts Toward Capitalism, Inequality Grows More Visible.”

What shift toward capitalism? Raul Castro has stated firmly that Cuba is not moving one centimeter away from Communism.

As Cuba opens the door wider to private enterprise, the gap between the haves and have-nots — and between whites and blacks — that the revolution sought to diminish is growing more evident.

That divide is expected to increase now that the United States is raising the amount of money that Cuban-Americans can send to the island to $8,000 a year, up from $2,000, as part of President Obama’s historic thaw with Cuba.

This was not any kind of agreement with Cuba. Cuba offered nothing, and was pleased that America surrendered to them. If Cuban-Americans send more remittances, they will only enrich the Communist government. Cuban citizens are limited to a maximum income of $20 a month, and anything over that goes to the government.

This was just another of Obama’s big ideas. He was going to liberate Cuba, expand trade, and the tourist business will improve the Cuban economy.

Remittances, estimated at $1 billion to nearly $3 billion a year, are already a big source of the capital behind the new small businesses. The cash infusion has been one of the top drivers of the Cuban economy in recent years, rivaling tourism revenues and mineral, pharmaceutical and sugar exports.

Fidel Castro has been estimated in the past by Forbes to be one of the world’s wealthiest men, and I’m sure that covers his little brother as well. Cuba has been trading the use of their doctors to Venezuela in trade for oil. The reason Cuban’s maximum income is so low is because they are offered free medical care and a ration card for food. If they have to go to the hospital, they need to supply their own sheets and blankets, their own medicine and even iodine, if needed. According to the Times:

The river where Jonas Echevarria fishes cuts through neighborhoods brimming with new fine restaurants, spas and boutiques, springing up in Cuba’s accelerating push toward private enterprise.

Tattered mansions and luxury apartment blocks speak of old wealth and new. A bounty of private restaurants known as paladares serve pork tenderloin, filet mignon and orange duck to tourists, Cuban-Americans visiting relatives and a growing pool of Cuban entrepreneurs with cash to spend.

I’m sure the Cuban government is building tourist facilities in expectation of lots of tourist business, bringing more revenue to the government, but this report from the New York Times has no relation to what I have read elsewhere about Cuba. Previous tourist hotels are run by a Spanish company, who pays the government for their Cuban workers. The government gives the workers their $20 a month, and pockets the rest.

The Times article extolls the Obama effort and assumes that everything in Cuba will improve as a result —in spite of Raul Castro’s firm declaration that nothing whatsoever was changing.  Interesting. Somebody is very wrong. We’ll see.


2 Comments so far
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The reliably deluded Times tries to paint Cuba as some laissez-faire libertarian feudal mess, when thinking people know it is at best a fascist/corporatist state, which is another way of saying “pragmatic socialism.” Inequality has been on the rise here in the States because of crony government fascism and Federal Reserve money creation pumping up bank balance sheets and stocks.

Comment by Joseph Dooley

I’ve written about the current Cuban situation here
and here, but never having been there, I depend on what I read, especially this piece by Michael Totten, last year. The Times “corrections” always provide a good laugh. They get so much so wrong!

Comment by The Elephant's Child




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