07 December 2007

ReCastro Reforms

This blog has been highly suspicious, dubious even, of the intentions and or ability of Raul ReCastro to make good on his promised economical changes to improve the everyday lives of Cubans.

But, I may have to revisit those suspicions in the coming year because word is getting out that the changes which will take effect early next year will be announced soon.

The first change has been leaked to EFE, and it involves the relationship between foreign companies and Cuban workers.

The new rule, according to this report, is much closer to the American model than the traditional Soviet model. Believe it or not.

You see, the regime has looked at the inequities that exist between those Cubans that have access to CUC’s and those that don’t. They have concluded that this inequity is unjust and that a leveling of the playing field is required.

So, in the spirit of brotherhood and egalitarian fairness that are two of the pillars of the Cuban revolution, the regime has decided it will tax the extra revenue that those Cubans who work for foreign companies get under the table, as a stipend, from their employers.

What, you thought they were going to increase wages to the Cubans who don’t work for foreign companies and therefore to get a gift here and there?

Why, that would go against the other pillar of the revolution: socialized misery.


Tomás Estrada-Palma said...

Economics 101 - Tax what you want to shrink. Obviously, Raul wants to reduce these Cubans' salaries.

HavanaJournal.com said...

Interesting, tax what you want to shrink. I didn't think of it that way. I just saw it as another way to punish the Cuban workers. Maybe Raul figures the foreign companies will just pay the workers more under the table thus allowing Raul to take more money.