Why is the Cuban economy in such a shambles?

Question

The US embargoes trade with Cuba (with some exceptions) and so we read about them driving old cars and repairing them with chewing gum and duct tape, but nothing prevents the rest of the world including Europe and China from trading with Cuba. So why is their economy in such lousy shape?

Answer 1

Because their major trade partner Russia is in such a shambles. That leave them restructuring their economy and output as their whole export demand and import supply have completely shifted. Canada and Spain are major trading partners, but that is still a limited markets. And how do you increase trade? Say you use to sell all your sugar to the USSR and they can't buy it anymore? Does Europe need more sugar are will you be in fierce competition with their established suppliers?

But is Cuba relatively in shambles? Gross Domestic Product and growth are both higher than their neighbors Jamaica, Barbados and Haiti. Jamaica being a democracy without US trade embargoes. So maybe economy has more to do with being a small Island in the Caribbean.

Answer 2

Well, as far as the economy goes, communism is not the best way to deal with it because resources are allocated inefficiently and the leaders usually live in a way more luxurious life than the rest of the country. Also, the embargo that the US places on Cuba causes prices in Cuba to go up so they can't afford anything really expensive. If the US were to trade with Cuba they'd be better off. And yeah, other countries do trade with Cuba, but, right now, the US is the wold power.

Answer 3

The economy in Cuba is so bad for three reasons the first and foremost is that communism just does not work (a nice pie in the sky idea but not practical) The second is the ruler of the country is a complete idiot and has his foot on the throats of all of his people and the third is that they do not have a hell of allot to sell that the world at large wants what cigars what else Rum, Sugar cane you can get any and in fact all of that stuff cheaper elsewhere.

Answer 4

It is a good example of socialism. Socialism removes all the excesses of capitalism. Like excess food, excess services and excess opportunity.

By equalizing outcomes, socialism mandates that all courses of action have the same result. There is nothing to gain by working harder and nothing to lose by not working at all. Which do you think people willl choose. The result is lower and lower productivity, and less wealth to share. So while they all may have an equal share, the pie gets smaller and smaller.

Answer 5

enable's llok at your "information" one-by-one, shall we? a million. Dow Jones is a scaled dollar fee of 30 stocks comprising the index. word that Dow is by no skill adjusted for inflation of greenback fee as designed. on the instant it closed at 13,463. The index became over 11,000 in Sep 2000. A 22% earnings over 7 years. yet, to study apples to apples, enable's see what befell to the dollar over an identical time period: about 30% loss in fee! that's compared to majority of international's currencies, no longer even gold it really is meant to be a benchmark. So, as of on the instant, we are sitting at an 8% loss in Dow in actual funds. yet, a extra perfect indicator of inventory market may be S&P500 index because it really is extra vast. There, we are nonetheless lower than 2000 stages. source: Yahoo Finance. 2. Unemployment cost does extremely symbolize the wellbeing of monetary gadget, besides the very shown truth that it really is needed. the authentic problem is that the speed has been oftentimes flat for the finest 10 years, even with the undeniable fact that the established of jobs are on decline as a results of outsourcing. 3. the way the inflation is calculated by the authorities does no longer have a leg to face on. i do no longer have the endurance to describe each and each and every of the topic matters with it, yet you want to look at great expenses which incorporates clinical, college training, housing and foodstuff. low priced of chinese language-made crap as well as falling expenditures of a few products as a results of technologies progression/outsourcing do no longer symbolize the authentic photo. 4. i'm no longer confident how actual sources expenditures help your aspect. in the journey that they are low, this suggests human beings won't be able to arise with the money for it because of undesirable monetary gadget. 5. The minimum salary has been unchanged till very at present because that early Nineties. $2 above it doesn't even conceal the reputable inflation huge form. Now, US monetary gadget isn't in shambles, even with the undeniable fact that it truly is a thoughts from wonderful by many measures. look at defficits, actual strengthen charges, huge complications down the line with Social protection and Medicare.

Answer 6

It has a lot to do with communism. Capitalism is the best antidote to poverty imo. It is hard to think of communist (non-capitalist) countries that have a strong middle class or have ever amassed much wealth.

If you think about it on a fundamental level:
Why do people work hard all day to produce things for society? Why do companies compete so hard to produce better products? How hard would the average person work if their paycheck did not resemble the quality of their work? ...

Answer 7

Since when do real communists engage in trade and markets? They don't. Unless you're China and mesh markets with a single party.

Answer 8

It could be the communist economy, I heard it doesn't work so good.

Answer 9

Because they are Communist.