
Cuba’s Unfriendly Business Climate Creates Poverty For Its People: Cuban Communist Government slaps new tax on food sales, Cuba imports 80 percent of the food it consumes – February 6, 2022,
Similar to Venezuela Cuba imports 80 percent of the food it consumes, but worse than that is Cuba’s business policies, which is the real driver of poverty on the Island. Both Cuban and Venezuelan governments don’t respect property rights. If you live in a poverty-stricken 3rd world country as of the year 2022, chances are your country doesn’t respect property rights.
If I start a business and the government can nationalize it, for any reason it feels like, that precedence will create a business climate that private businesses want nothing to do with. Nobody cares about U.S embargos in Cuba, the U.S has embargoes on China, but you can still go to China and buy food at McDonald’s and KFC.
The U.S Government isn’t as powerful as you might imagine, sure militarily the U.S military is a force to be reckoned with, there’s only so much the U.S government can do to a business wanting to do business in Cuba. It’s actually the Cuban government that punishes businesses for doing business in Cuba, it’s not until you understand the tyranny created by Socialism and Communism that you understand the driving forces of poverty.
In the year 2022, Joe Biden decided to overly regulate U.S oil and gas, because of this boneheaded move by the Biden administration, the price of oil is reaching record levels, Joe Biden’s regulations on businesses, caused inflation, now, in Cuba, their communist government does nothing but regulate their economy. Anything that could threaten the Cuban revolution, is considered a threat to the Cuban community regime.
Private businesses enriching the Cuban people is a threat to the Cuban revolution. Communists in case you’re unaware want to control the means of production, Democratic Socialists are similar in that they too want to control the means of production, but these left-wing groups all approach Nationalization differently. In China, they have Special economic zones (SEZs) which are free-market-oriented zones, these special regions in China generate most of the countries wealth.
This is why Communist China is more successful economically than Communist Cuba. Even Venezuela has small pockets of free-market zones, Cuba on the other hand has no free-market zones. Because Communism doesn’t work, there is no incentive for the people of Cuba to cultivate their own food to sell. Remember that in order to trade, the government has to have good economic policies for businesses.
So even though Cuba had an agrarian reform, landowners have no incentive to do anything with the land they have. This is why Cuba is so reliant on imports, now when a country is reliant on imports, the value of their currency becomes extremely important, well because there’s no reason for anyone except for Cubans to hoard Cuban Pesos when resources are scarce, nobody wants Cuban pesos, which obviously leads to inflation.
When it comes to tyrannical Communist governments, nothing is ever the government’s fault, everything is people’s fault, the business-persons fault and therefore the Cuban government slaps a tax on the people. Big Government is stupid, and Cuba is the perfect example of what happens when you allow the government to get too large.
Now, I want you to think about this for a moment, Cuba is a tropical Island, food can grow naturally there, why then does the country not have enough food to feed itself? The answer is the Cuban government, when the government incentivizes people to do nothing, people will do NOTHING! You have to understand that people in Cuba can be JAILED if the Cuban government imagines certain individuals are making too much money.
So when you hear idiots like Bernie Sanders constantly bashing millionaires and billionaires for votes, I want you to understand the alternative when the government begins punishing non-government people for being wealthy, there will be less of an incentive for non-government people to be productive. In life there are only tradeoffs, Capitalism works, because humans like challenges and incentives, some people will do better than others, but at the very least with capitalism, you can dream of a better life.
With communism, the government decides your life, if the government decides you’re making too much money, the communist government will not only take your wealth from you, the government will also create laws to make sure, capitalists pigs never get wealthy within the Cuban borders ever again! After all Castros regime can’t allow anything to compromise the Socialist Cuban Revolution, because the Revolution was for “the people”.
Cuba on Saturday announced a new 10 percent tax on retail food sales, as the country endures economic woes marked by rampant inflation. Cuba imports 80 percent of the food it consumes.Cuba slaps new tax on food sales as economic woes hit hard | france24.com
Interesting times ahead!