Recognizing Socialism’s Failure, Cuba’s Castro Revives Market in Private Property

[LibertyEagle]

Recognizing Socialism’s Failure, Cuba’s Castro Revives Market in Private Property


When it comes to private property, wrote economist Ludwig von Mises, it is a simple “either-or” proposition: “either private ownership of the means of production, or hunger and misery for everyone.” In 1959, Fidel Castro essentially abolished private property in Cuba, and the result has been exactly as Mises predicted: a declining standard of living and shortages of basic necessities such as food, building materials, and housing.

Faced with this reality, Raul Castro, Fidel’s brother and successor, has begun scaling back government and liberalizing property laws. He has pledged to trim nearly one-quarter of the government workforce, which accounts for over 80 percent of all jobs in Cuba. Last year he began allowing private enterprise in some limited circumstances, and now “the number of private business operators has hit more than 333,000, above the expectations of the authorities, from 148,000 in 2010,” according to Agence France-Presse. In October he lifted some restrictions on the buying and selling of automobiles. Now, in what the Associated Press terms “the most important reform yet,” Castro’s government has announced that individuals will, for the first time in half a century, be able to buy and sell real estate.

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[specsaregood]

Recognizing Socialism’s Failure, Cuba’s Castro Revives Market in Private Property


I'm not going to say socialism or communism works BUT Cuba isn't a fair example as it never got a fair shake. There has been an embargo on the small country for 50+ years. Embargoed not just from the biggest financial powerhouse of the world BUT also --and more importantly-- embargoed from the WORLD RESERVE CURRENCY. The unit of "money" required to purchase oil on the international market. To say they have failed because of socialism isn't quite so clear. They have failed because they been bullied for 50 years. In fact, one could argue that the fact that they have lasted this long is a testament to the resiliency of their communism.

[LibertyEagle]

I'm not going to say socialism or communism works BUT Cuba isn't a fair example as it never got a fair shake. There has been an embargo on the small country for 50+ years. Embargoed not just from the biggest financial powerhouse of the world BUT also --and more importantly-- embargoed from the WORLD RESERVE CURRENCY. The unit of "money" required to purchase oil on the international market. To say they have failed because of socialism isn't quite so clear. They have failed because they been bullied for 50 years. In fact, one could argue that the fact that they have lasted this long is a testament to the resiliency of their communism.

Could have fooled me.

[specsaregood]

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[torchbearer]

Maybe you didn't read what I said then.

How long do you think a small island constitutional republic would last when embargoed from the world reserve currency for 50 years?

you think a free market cuba under embargo would be in the same impoverished mess? the only thing that has probably function in that country for the last 50 years is the black market.

[specsaregood]

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[torchbearer]

I'm saying I don't know for sure. But, to blame cuba's situation solely on its communist system is false. If one wants to make a case for the failure of socialism and communism there are much better examples, yes?

the USSR is the perfect example. but you can use that info to see the system doesn't work. embargo really has now impact on the failure of price controls and lack of property ownership.

[specsaregood]

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[low preference guy]

They would've been a lot better off with a free market. Only the U.S. forbids their citizens from visiting Cuba, so a good source of imported wealth would've been tourism. They could've developed really luxurious and expensive resorts and of course that would've enabled them to import things from other countries using Euro's or whatever.

[specsaregood]

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[low preference guy]

Well my understanding is that fair number of non-american tourists do visit there. But still they are embargoed from services provided by US companies. Does visa or MC work there? That is a huge impediment and it isn't cuba that put those restrictions on freedom in place, it was the US.

I believe a free market would've developed alternatives to those services (to VISA, MC).

Also, I doubt a communist structure is as effective as encouraging visitors to come as a free market would. I don't think it's crazy to think that a free tourist industry would've attracted a lot more visitors and money.

[specsaregood]

I believe a free market would've developed alternatives to those services (to VISA, MC).

tough to believe that a free market in the destination would solve the problem of visitors not being able go their because their domestic money and services/businesses are forbidden from doing business there. but perhaps....



Also, I doubt a communist structure is as effective as encouraging visitors to come as a free market would. I don't think it's crazy to think that a free tourist industry would've attracted a lot more visitors and money.
I agree; all I'm saying is using cuba as an example of this isn't fair accurate as they had additional huge external impediments that other countries have not had.


My point is, our lack of a free market contributed to cuba's failure. and at this point, their govt might outlast ours!

[low preference guy]

tough to believe that a free market in the destination would solve the problem of visitors not being able go their because their domestic money and services/businesses are forbidden from doing business there. but perhaps....

But that's only the U.S. right? I'm talking about the rest of the world. And if Visa doesn't work for non-US tourists because it's a U.S-based service, an alternative would develop is there is enough demand.

[low preference guy]

My point is, our lack of a free market contributed to cuba's failure. and at this point, their govt might outlast ours!

It depends how you evaluate failure. Even if the standard of living is high in some communist country, it's still a failure because it would've been a lot higher with a capitalist system.

[Zippyjuan]

And yet, Cuba survived without collapse for 50+ years without access to the majority of the worlds markets including oil all the while having a mortal enemy who is the worlds most imperialistic nation less then 100miles from its shores. If I wanted to spin it as a success story, it wouldn't be all that difficult.

I guess you could say survive- a good word choice- it was not easy and most are very poor. They did not exactly "thrive" but merely managed to get by.

[specsaregood]

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[specsaregood]

I guess you could say survive- a good word choice- it was not easy and most are very poor. They did not exactly "thrive" but merely managed to get by.

Yeah, I'm not promoting it; but surviving is a helluva feat all things considered, yes?

[low preference guy]

anyway, Cubans are fucked up. can you believe you could buy and sell your house starting only this week? it's crazy.

[Zippyjuan]

They haven't even been allowed to have their own businesses until just recently when a few were finally permitted (for most, they are still banned). You can still be arrested for even offering haircuts out of your own home (which you don't own either). Very few are going to be able to afford to buy any property.

[specsaregood]

anyway, Cubans are fucked up. can you believe you could buy and sell your house starting only this week? it's crazy.

That is crazy. I'm so glad I can own my land outright here in the US without having to pay rent to the lords in Trenton...oh wait. :)

[low preference guy]

That is crazy. I'm so glad I can own my land outright here in the US without having to pay rent to the lords in Trenton...oh wait. :)

we're all crazy too but you can at least rent it.