There is a country that is in the midst of slashing government payrolls. In this country, public sector employment actually dropped by almost 6 percent last year. They are focusing on spurring private sector growth. In fact, their private sector experienced enormous growth in 2012. In this country, the number of private sector workers increased by 23 percent in 2012 alone. The unemployment rate in this country is now 3.8 percent including those not looking for work.
What is this country? Believe it or not, it’s Cuba!
Yes, since Raul Castro took over, he has been quietly dismantling the collectivist, socialist apparatus that has kept the country in the dark ages for so long. In 2012, Raul Castor cut the number of public sector workers by 228,000. That was on top of the 137,000 they cut in 2011. At the same time, the number of private sector employees rose to 1.1 million. Cuba is closing thousands of state-run businesses, such as cafeterias, barber shops, etc. offering to then lease the properties to employees or those wanting to run their own businesses.
“Our state cannot and should not continue maintaining companies, productive entities, services and budgeted sectors with bloated payrolls (and) losses that hurt the economy, are counterproductive and form bad work habits,” a trade union federation statement said in 2010, when plans were first announced to push state employees into the “non-state” sector.
Do you find it ironic that while this country has begun to realize how damaging collectivist, socialist policies are to the human spirit and the demonizing of the rich instead of fostering the principles of success, that our President has embraced them, and is taking the U.S. down the road that Cuba and all of these failed communist states are running from as fast as they can?
I have said many times that there is no such thing as collective salvation or collective prosperity. All this type of ideology does is kill the human spirit, make people lazy and dependent, and destroy their ability to better themselves. Free people in free markets who have the ability to better themselves and strive to new heights will always have a better quality of life. They are free to pursue their own salvation — their own form of happiness — because they have liberty.
In the U.S., more and more, we are losing our liberty. This week, every working person lost income from their paychecks. We will be losing even more as decisions about our health will be taken away and new taxes put upon us to pay for it.
The only thing that I can say at this point is that although these politicians seem to act like idiots, they are not. They understand how things work. They know why communism and socialism fail. They know that 70 percent of the U.S. GDP is based on you and spending your money, so taking money out of our hands slows the economy down. They are not that inept.
Instead, the only thing that makes sense at this point is that it is being done intentionally and they are not afraid to make it obvious. Power is their drug and they want more and more. As Obama just said and I paraphrase, “Cutting spending will not get us out of this mess, further closing loopholes on the rich and the wealthiest corporations will need to be done.”
Mr. President, when was the last time you cut any spending? Now, after you have gotten your coveted tax raise on all of us, it’s not enough?
Mr. President, you increased taxes at a ratio of 41:1 — $41 in new taxes for every $1 in spending cuts. And, you need more taxes now because you cut spending by $1? In addition, we are yet to discuss what those cuts are going to be, and you’re saying you will want even more tax increases at that time.
Obama will never learn from the lessons of failed states that have finally had to turn themselves around, like Cuba. He just thinks they didn’t do it right, but he has the ability to do it correctly. The laws of economics must bend to the politicians in Washington differently than in the rest of the world.
Sadly, I think not, and we are going to have to endure another failed experiment of collectivism in this world right here at home. Who knows, maybe Cuba will become the next great Caribbean getaway as it was in the early 1900s, because we are going to need a vacation from the train wreck coming our way.
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- In economic freedom index, Cuba ranks 176th out of 177 (marcmasferrer.typepad.com)
- Trade with Cuba is not free trade (babalublog.com)
- A U.N. human rights group has urged Cuba to free Alan Gross (miamiherald.com)
- Cuba “Expertise” (!!!) from the UK Telegraph (babalublog.com)
- Carriers dropping Tampa-Cuba charter flights (tbo.com)