Cuba ending subsidies

[Nothing Human Is Alien]

HAVANA (Reuters) – Cuba is phasing out its longstanding monthly allotments of subsidized cigarettes as President Raul Castro works to jump-start the island's sputtering economy.

Beginning next month, some 2.5 million Cubans over the age of 54 no longer will get their four packs of cigarettes as part of the country's ration program, the government announced on Wednesday.

"The Council of Ministers has resolved to eliminate cigarettes from the rationed family basket as of September as part of the measures gradually being adopted to limit state subsidies," an official statement said.

The cigarettes "are not a primary necessity," it said.

Castro has said that communist-ruled Cuba's ration system eventually will be eliminated as he moves to modernize the economy.

Monthly allotments of chickpeas, potatoes and a pound (0.45 kg) of sugar were removed from the system this year.

Many subsidized items were cut in the 1990s after the collapse of former benefactor the Soviet Union plunged the island into a deep recession.

But allotments of inexpensive cigarettes for Cubans born before 1956 were kept in place.

TRIMMING STATE PAYROLL

Local economists estimate the ration of rice, beans and other staples provides enough food for less than two weeks, leaving many Cubans to turn to state-run stores and markets.

Castro, since taking over from his ailing elder brother Fidel Castro in 2008, has pushed to restructure the centralized economy, which has been battered by hurricanes, the global financial crisis and chronic inefficiencies.

He has called for the elimination of all subsidies, and such things as state-sponsored honeymoons and vacations already have been cut. But Cubans would still enjoy free health care, education and social security.

Castro recently announced plans to lay off 1 million workers over five years, or a fifth of the labor force, and has called for more family farming, self-employment and small business creation to make up for cuts in the state's payroll.

Cuba is an important tobacco and cigar producer and boasts one of the world's highest per-capita rates of smokers.

Unlike many countries where cigarettes are heavily taxed, Cuba sells unfiltered black tobacco cigarettes for as little as 7 pesos a pack at state stores, or around 40 cents, while the allotted packs cost just 2 to 3 pesos.

Retirees can often be seen on Havana's streets selling their subsidized cigarettes for 5 pesos a pack.

"This is a blow for the elderly like me," 82-year-old Esperanza Rodriguez said. "It was like a little bit of money they gave us each month."

[KurtFF8]

No one claimed that Cuba was immune to the trends of global Capitalism, especially since the collapse of the USSR.

[The Vegan Marxist]

When the economic stability of a nation finds itself decreasing, it's necessary to embrace State regulated capitalist policies in order for the economy to thrive again. Lenin had seen this as the last stage of Capitalism before Socialism was to be implemented. This can be seen through the New Economic Policy (NEP).

[Nolan]

Inevitable. Someone in the state is getting rich from these things.

[manic expression]

So, basically, cigarettes now cost 7 pesos instead of 3...and the change only affects those 54 and older.

[Pretty Flaco]

When the economic stability of a nation finds itself decreasing, it's necessary to embrace State regulated capitalist policies in order for the economy to thrive again. Lenin had seen this as the last stage of Capitalism before Socialism was to be implemented. This can be seen through the New Economic Policy (NEP).

I've always been under the opinion that "state capitalism" is a bullshitted excuse for the end of socialist gains in a state.

To me, it just seems like throwing away revolutionary policies for some dough.

[Crimson Commissar]

When the economic stability of a nation finds itself decreasing, it's necessary to embrace State regulated capitalist policies in order for the economy to thrive again. Lenin had seen this as the last stage of Capitalism before Socialism was to be implemented. This can be seen through the New Economic Policy (NEP).
Except that they're adding Capitalist policies to Socialism, not slowly eliminating the Capitalist policies in order to transition to Socialism. These sort of actions are completely unjustified. It has been proven that introducing capitalism into a socialist nation inevitably results in the collapse of socialism in that country. If Cuba somehow manages to pull this off successfully and maintains its Socialism long enough for it to still be going when Capitalism collapses, then great, but I don't see any good coming out of this right now.

[The Vegan Marxist]

Except that they're adding Capitalist policies to Socialism, not slowly eliminating the Capitalist policies in order to transition to Socialism. These sort of actions are completely unjustified. It has been proven that introducing capitalism into a socialist nation inevitably results in the collapse of socialism in that country. If Cuba somehow manages to pull this off successfully and maintains its Socialism long enough for it to still be going when Capitalism collapses, then great, but I don't see any good coming out of this right now.

Unless this is under the first stages of NEP. What NEP represented was a temporary, but necessary retreat back to Capitalism with a close watch by the State. From there & on, we could then possibly see it slowly decreasing as time goes by. Initially, though, we can't make any correct analysis of this just yet. So we'll just have to see how things go from here. I hope Castro knows what he's doing.

[Raúl Duke]

such things as state-sponsored honeymoons and vacations already have been cut.

:(

[RedSonRising]

Oh, oh no.... not the cigarettes....HOW WILL THE PROLETARIAT EVER BE FREE WITHOUT THEIR CIGARETTES!




In all seriousness, this seems like another article that is trying to exaggerate changes happening to implicate a shift towards capitalism. Yes, there have been adaptations similar to those of the world capitalist system's economic adjustment trends, but there is no ruling class acquiring the means of production in any of the economic situations presented, and this one is no different. Cutting subsidies of necessary goods doesn't signal the abandonment of revolutionary principles in policy. The rationing system is a good way of distributing basic necessary goods regardless of employment situation, but adding more efficient systems of distribution would help. While a great staple of classless economic planning, there have been complaints of quality and availability at times of the rationing system. I feel bad for those who can't get there cigarettes, but I'll be more worried once democratic economic planning institutions and worker cooperatives start being handed over to private owners creating workplace tyrannies around the island.

[AK]

When the economic stability of a nation finds itself decreasing, it's necessary to embrace State regulated capitalist policies in order for the economy to thrive again. Lenin had seen this as the last stage of Capitalism before Socialism was to be implemented. This can be seen through the New Economic Policy (NEP).
Nice to see you support maintaining the existence of capitalist social relations, comrade.

[The Vegan Marxist]

Nice to see you support maintaining the existence of capitalist social relations, comrade.

I'm not supporting the existence of capitalism, but I am explaining the reasoning behind why, when facing economical instability, the temporary retreat back to capitalist measures is, unfortunately, necessary. So don't put words in my mouth just because you lack any correct analysis through on-going situations.

[AK]

I'm not supporting the existence of capitalism, but I am explaining the reasoning behind why, when facing economical instability, the temporary retreat back to capitalist measures is, unfortunately, necessary. So don't put words in my mouth just because you lack any correct analysis through on-going situations.
Why is it necessary? Why can't the working class be trusted to ensure its future?

[The Vegan Marxist]

Why is it necessary? Why can't the working class be trusted to ensure its future?

This is by no means pertaining on any lack of trust in the working class. But despite whether the working class is present or not, there must be some kind of State assistance to the workers. You can't just say "okay workers, you now own the tools, now get working". The conditions of the economy play into the matters of whether it'll thrive or collapse. To just leave the workers to do it on their own when the economy is on a brink of collapse, in my opinion, is putting an unnecessary amount of weight on the backs of the working class, in which more than likely could not handle it. So those of the ruling class, if in the favor of the working class & not the bourgeoisie, must be there to provide this necessary assistance to bring the economy back up for the workers to thrive upon.

[LETSFIGHTBACK]

So let's see, Raul called for "self employement and opening small businesses, and on top of this, a layoff of 1 million. Now here is the question: where the hell is money going to come from to patronize the small businesses that Raul is encouraging people to open if he is laying off 1 million? Herbert Marcuse said "one capitalists workers are another capitalists customers". Telling people to open businesses? that's socialism?

[Ovi]

So, basically, cigarettes now cost 7 pesos instead of 3...and the change only affects those 54 and older.
Yes, fuck those.

So let's see, Raul called for "self employement and opening small businesses, and on top of this, a layoff of 1 million. Now here is the question: where the hell is money going to come from to patronize the small businesses that Raul is encouraging people to open if he is laying off 1 million? Herbert Marcuse said "one capitalists workers are another capitalists customers". Telling people to open businesses? that's socialism?
Can't you see? We will abolish capitalism by reverting back to it, the same way we will abolish the state by putting everything in the hands of the state. You must be blind not to see the reasoning behind this...

[REDSOX]

Would people stop comming onto these boards and putting things up like castro is laying off 1 million workers. He is not, any workers who lose the jobs will be given employment elsewhere!!!. And as for the cigs well so what

[RadioRaheem84]

Wow they received cigarettes? So many people in the State complain about welfare recipients buying cigarettes, as if they can live off of them alone.

[Raúl Duke]

Would people stop comming onto these boards and putting things up like castro is laying off 1 million workers. He is not, any workers who lose the jobs will be given employment elsewhere!!!. And as for the cigs well so what


There's still the issue of these:


He has called for the elimination of all subsidies,

If I were a Cuban I would be a bit pissed, especially about the vacations.
Also, somewhat concerning is this:


has called for more family farming, self-employment and small business creation to make up for cuts in the state's payroll.My question is: what's the diff between self-employment and small business creation in Cuba's case? Can people (outside the state) hire and exploit others in Cuba?

[manic expression]

My question is: what's the diff between self-employment and small business creation in Cuba's case? Can people (outside the state) hire and exploit others in Cuba?
As far as I've seen, no. It hasn't changed: small business in Cuba means a family or a group of people putting their own labor into a restaurant (for example) and managing it themselves. It just isn't done directly through the state, but that doesn't mean it's exploitation.


Yes, fuck those.
Tripling the price of the first four boxes of cigarettes for people 54 and older has nothing to do with the relationship of the workers to the means of production, and it has no bearing on what kind of society Cuba is. This is a cost-saving measure...undesirable, sure, but that's about it.

[Lolshevik]

This isn't the biggest deal in the world, I guess. I certainly don't understand how some people on here can extrapolate the whole nature of the Cuban state based on the end of rationed cigarettes. Do you folk also read tea leaves to determine when the next economic crisis will hit? Most Marxists make an in-depth study of political economy of a given country to make these statements, you all must be that much smarter than the rest of us. :P

This is an unfortunate thing, though, & it highlights how badly the Cuban people need international revolution to alleviate their pariah status. Cuba's proletariat has given so much to the international movement just by showing what determination and working class power can do even when the objective situation is stacked against them; they deserve a break.

[Nolan]

Yes, fuck those.

Can't you see? We will abolish capitalism by reverting back to it, the same way we will abolish the state by putting everything in the hands of the state. You must be blind not to see the reasoning behind this...

You attacked that strawman brilliantly. Good job.

[Nolan]

This isn't the biggest deal in the world, I guess. I certainly don't understand how some people on here can extrapolate the whole nature of the Cuban state based on the end of rationed cigarettes. Do you folk also read tea leaves to determine when the next economic crisis will hit? Most Marxists make an in-depth study of political economy of a given country to make these statements, you all must be that much smarter than the rest of us. :P

This is an unfortunate thing, though, & it highlights how badly the Cuban people need international revolution to alleviate their pariah status. Cuba's proletariat has given so much to the international movement just by showing what determination and working class power can do even when the objective situation is stacked against them; they deserve a break.

Don't be dumb. It's not just about the cigarettes.

[What Would Durruti Do?]

I'm not supporting the existence of capitalism, but I am explaining the reasoning behind why, when facing economical instability, the temporary retreat back to capitalist measures is, unfortunately, necessary. So don't put words in my mouth just because you lack any correct analysis through on-going situations.

And people wonder why Leninism always results in the return of capitalism? You guys even admit it yourself that it is necessary for the state to cover its ass by screwing over the workers.

[Nolan]

And people wonder why Leninism always results in the return of capitalism?

People who die of cancer all have brains, so having a brain must kill you.


You guys even admit it yourself that it is necessary for the state to cover its ass by screwing over the workers.

Show me. This should be entertaining.

[What Would Durruti Do?]

People who die of cancer all have brains, so having a brain must kill you.

People who die of cancer all have cancer too. I didn't say Leninism fails because Leninists smoke cigarettes which is irrelevant to the topic, I said Leninism fails because of its reliance on the state who will always put themselves above the workers.


Show me. This should be entertaining.Why do you think I just quoted TVM? He said it right there.

[The Vegan Marxist]

People who die of cancer all have cancer too. I didn't say Leninism fails because Leninists smoke cigarettes which is irrelevant to the topic, I said Leninism fails because of its reliance on the state who will always put themselves above the workers.

Why do you think I just quoted TVM? He said it right there.

No, what you quoted was me stating that during a period of near economic collapse, it's necessary to go back to some capitalist measures in order to build up the economy from there, & then that's when the temporary stage of capitalism ends.

[The Vegan Marxist]

My question is: what's the diff between self-employment and small business creation in Cuba's case? Can people (outside the state) hire and exploit others in Cuba?

These small businesses that's done through a family like in the restaurants, &/or the self employment such as a taxi driver & being a barber, these are what they are. Either through family or one's self. The Cuban government prohibits these small businesses from hiring other workers & exploiting them. Meaning it doesn't effect the socialist economy of Cuba. This is what you people fail to understand.

[GPDP]

These small businesses that's done through a family like in the restaurants, &/or the self employment such as a taxi driver & being a barber, these are what they are. Either through family or one's self. The Cuban government prohibits these small businesses from hiring other workers & exploiting them. Meaning it doesn't effect the socialist economy of Cuba. This is what you people fail to understand.

It's not so much a failure to understand in some cases as it is a lack of desire to understand.

The reason why some leftists see an article like this that purposely implies Cuba is on its way back to capitalism and take it at face-value is because they ALREADY are convinced it is either state-capitalist or is on its way back to capitalism thanks to the Castros/the bureaucracy. They take it at face value out of confirmation bias. It says what they suspect, so it must be true and Cuba's government must be criticized accordingly.

[What Would Durruti Do?]

No, what you quoted was me stating that during a period of near economic collapse, it's necessary to go back to some capitalist measures in order to build up the economy from there, & then that's when the temporary stage of capitalism ends.

Right, because increasing capitalist measures is a sure indicator that the temporary stage of capitalism is about to end.

[The Vegan Marxist]

Right, because increasing capitalist measures is a sure indicator that the temporary stage of capitalism is about to end.

Increasing? It's about going back to some capitalist measures, not while in capitalism we increase it. You're highly confused.

[Nachie]

Has anyone ever bothered to wonder if perhaps the success of communism shouldn't be defined by the same mechanistic standards as were previously employed by class societies to trumpet the supposedly positive aspects of capitalist economic growth and development?

[this is an invasion]

I'm just wondering when it became alright for COMMUNISTS to say that capitalism will benefit the workers.

[What Would Durruti Do?]

Increasing? It's about going back to some capitalist measures, not while in capitalism we increase it. You're highly confused.

One of us is, that's for sure.


Has anyone ever bothered to wonder if perhaps the success of communism shouldn't be defined by the same mechanistic standards as were previously employed by class societies to trumpet the supposedly positive aspects of capitalist economic growth and development?

Crazy talk! Get back to work comrade! Produce for the motherland!

[manic expression]

I'm just wondering when it became alright for COMMUNISTS to say that capitalism will benefit the workers.
Without capitalism, the proletariat wouldn't exist. Marx recognized that capitalism played a progressive role in history, and that the proletariat owes its existence to capitalism.

But that aside, I think some posters are saying that capitalist measures have the ability to jump-start an economy from scratch...kind of like taking two steps back from the ledge so you can later jump to the other side. I don't see that happening here, though, because having smokes cost a bit more doesn't equal capitalism.


Has anyone ever bothered to wonder if perhaps the success of communism shouldn't be defined by the same mechanistic standards as were previously employed by class societies to trumpet the supposedly positive aspects of capitalist economic growth and development?This brings up an interesting point, because communists don't. Supporters of Cuba aren't pointing to GDP growth, or "market fluidity" as success...supporters of Cuba point to universal healthcare, housing, education and otherwise. Most importantly, though, supporters of Cuba point to the fact that workers control Cuban society, and that production is in the hands of its laborers. Remember, revolution is not just a list of improvements; it is a new system that brings about a list of improvements.

[Charles Xavier]

The Cuban government has a revenue problem caused due to the fact that it is an island nation incapable of being fully self sustaining, and as a result are forced to participate in the capitalist global economy. They had a choice, continue to extend credit, which would lead to currency devaluation and and further abandonment of the Cuban Peso in favour of other currencies, or to make cuts like these in their budget or taxation. This is not privatization and selling off of the country.

[LETSFIGHTBACK]

Yes, fuck those.

Can't you see? We will abolish capitalism by reverting back to it, the same way we will abolish the state by putting everything in the hands of the state. You must be blind not to see the reasoning behind this...


I don't know if I'm getting dementia, or I need huge doses of vitamin E, but no, I don't see the reasoning behind this. Please explain....