April 25, 2018 By Martin Marcus
Cuba is so lucky. With the installation of their new president, Miguel Díaz Canel, Cubans will be able to continue with their terrific lifestyle. What lifestyle? Income equality.
We are repeatedly told that income inequality is bad. Apparently, you should be ashamed of yourself if you earn more money than what lazier people get. We are supposed to assume that the definition of paradise is a place where everyone has the same income. So what is it like in a country with income equality? Cuba has income equality.
Verifying this requires a careful look at the data. Most sources – for example, Brookings – cite a per capita income of about $240 per year. Wikipedia cites about $22,000 per year, so be careful with your information sources. The government employs 78% of the workers, so there is little opportunity to get an income very different from the average. How can people survive on a salary of practically nothing? Thanks to the government, Cubans get free food and medicine. They get subsidies for virtually everything they might buy. As a result, someone getting no salary is only slightly worse off than someone with a relatively high income. In all practicality, Cuba has as close to income equality as a society can provide.
Cuba also has abject poverty and child prostitution. Before the 1959 revolution, Cuba exported $780 million (1959 dollars) of goods, mostly food. Now it imports 70% to 80% of the food that it consumes. The result is that Cubans risk their lives in shark-infested waters to escape. Before the Castros took over Cuba, it was quite prosperous. PBS describes Cuba's 1950s living standards this way: ............Read more
We are repeatedly told that income inequality is bad. Apparently, you should be ashamed of yourself if you earn more money than what lazier people get. We are supposed to assume that the definition of paradise is a place where everyone has the same income. So what is it like in a country with income equality? Cuba has income equality.
Verifying this requires a careful look at the data. Most sources – for example, Brookings – cite a per capita income of about $240 per year. Wikipedia cites about $22,000 per year, so be careful with your information sources. The government employs 78% of the workers, so there is little opportunity to get an income very different from the average. How can people survive on a salary of practically nothing? Thanks to the government, Cubans get free food and medicine. They get subsidies for virtually everything they might buy. As a result, someone getting no salary is only slightly worse off than someone with a relatively high income. In all practicality, Cuba has as close to income equality as a society can provide.
Cuba also has abject poverty and child prostitution. Before the 1959 revolution, Cuba exported $780 million (1959 dollars) of goods, mostly food. Now it imports 70% to 80% of the food that it consumes. The result is that Cubans risk their lives in shark-infested waters to escape. Before the Castros took over Cuba, it was quite prosperous. PBS describes Cuba's 1950s living standards this way: ............Read more
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