Cuban Liberty Society
For a Free, Just and Prosperous CubaAustin, Texas, USA
Cuban Liberty Society
Austin, Texas, USAEconomic Fallacies
After digesting for a week a bunch of economic fallacies about Cuba and the President's ill timed visit to the Island, I would like to give my friends an opinion of just a few of the fallacies propagated by the Regimen . These economic fallacies have now become popular among some in our business community. Among these are the following in my view:
1. Lift the embargo and business opportunities will flourish . In reality Cuba is a bankrupt nation financially that can not service its $27 billion external debt. So this must mean that US taxpayer funded EXIM Bank loans, CCC credits must be used to "finance" the business opportunities if Embargo is lifted. So, US taxpayers end up footing the bill as Cuba is bankrupt and will not be able to service the credits.
2. There exists a growing number of "entrepreneurs" in Cuba. This is false. An entrepreneur OWNS its own business, and has the right to sell and dispose of property as it deems fit, either becoming a millionaire or going bankrupt as potential outcomes. The Communist Government of Cuba does NOT recognize private property. There is no right to OWN business property and dispose of it. The many courageous individuals that we call "entrepreneurs" are simply self employed in very restricted number of occupations. That license can be taken away anytime by the repressive regimen without due process. Without clear private property rights, there are no bank loans or venture capital to grow. In essence, there is really NO private sector in Cuba, only another method of control by the totalitarian government.
Finally, I hear that Cuba has a vibrant scientific industry, where miracle vaccines and drugs are being developed. Really? So Cuban exports of these must be booming, right? Really, no. Most of these lack quality control and are not competitive on a global scale.
So my conclusion is simple. What ails Cuba is the same repressive regimen in power since 1959. That is the causal factor of the current nightmare of the Cuban people.
