See now the naked tyrant 42

Obama is prepared to damage the economy even more than he has already. He threatens through his officials that if he doesn’t get his way with cap-and-trade, he will take steps that will ‘deter investment’. But then if he does get his way with cap-and-trade, the economy will be grossly harmed anyway. Whose economy is it that he’s threatening? Is it not the economy of the country he leads? So why would he want to wreck it?  The answer is not hard to find. Look to Copenhagen, where the rampaging Left is using false science to try and impose ‘world governance’.  This was to be the moment when international socialism triumphed. It’s been spoilt by exposure of the scientists’ deceptions. The global warmists/global government conspirers are fighting mad. They’ll wreck anything, everything, to achieve their hellish aim.

From Fox News:

The Obama administration is warning Congress that if it doesn’t move to regulate greenhouse gases, the Environmental Protection Agency will take a “command-and-control” role over the process in a way that could hurt business.

The warning, from a top White House economic official who spoke Tuesday on condition of anonymity, came on the eve of EPA Administrator Lisa Jackson’s address to the international conference on climate change in Copenhagen, Denmark.

Jackson, however, tried to strike a tone of cooperation in her address Wednesday, explaining that the EPA’s new powers to regulate greenhouse gases will be used to complement legislation pending in Congress, not replace it.”This is not an ‘either-or’ moment. It’s a ‘both-and’ moment,” she said. But while administration officials have long said they prefer Congress take action on climate change, the economic official who spoke with reporters Tuesday night made clear that the EPA will not wait and is prepared to act on its own.

And it won’t be pretty.

“If you don’t pass this legislation, then … the EPA is going to have to regulate in this area,” the official said. “And it is not going to be able to regulate on a market-based way, so it’s going to have to regulate in a command-and-control way, which will probably generate even more uncertainty.”

Climate change legislation that passed the House is stuck in the Senate, but the EPA finding Monday was seen as a boost to the U.S. delegation in Denmark trying to convince other countries that Washington is capable of taking action to follow through with any global commitments.

The economic official explained that congressional action could be better for the economy, since it would provide “compensation” for higher energy prices, especially for small businesses dealing with those higher energy costs. Otherwise, the official warned that the kind of “uncertainty” generated by unilateral EPA action would be a huge “deterrent to investment,” in an economy already desperate for jobs.

“So, passing the right kind of legislation with the right kind of compensations seems to us to be the best way to reduce uncertainty and actually to encourage investment,” the official said.

Republicans fear that the EPA will ultimately end up stepping in to regulate emissions — though many oppose the congressional legislation as well. They had urged Jackson to withdraw the finding in light of leaked e-mails from a British research center that appeared to show scientists discussing the manipulation of climate data.

Rep. James Sensenbrenner, R-Wis., ranking Republican on the House Select Committee for Energy Independence and Global Warming, said Tuesday he is going to attend the Copenhagen conference to inform world leaders that despite any promises made by President Obama, no new laws will be passed in the United States until the “scientific fascism” ends.

Go, James, go!

Not too late to save America? 63

From PowerLine:

The federal government is trying to take control over our lives via government medicine, cap and trade, and more. …

Having the far left in control of both the executive and legislative branches is a terrible thing, but on the plus side, it is clarifying: people actually have to think about where they stand on the big issue of freedom vs. socialism. Or, in other words, freedom vs. slavery.

The game isn’t over yet, but we have, roughly speaking, a first-quarter score, and so far freedom is ahead. Rasmussen finds that 76% of Americans favor a free market economy, compared to 10% who favor an economy managed by the government. More fundamentally than anything else, this explains why the Democrats face such an uphill struggle in their effort to remake America in a left-wing image.

Yes. But why didn’t enough people think about it before they put the socialists in power? If Republicans regain Congress in 2010 and the presidency in 2012, will they shrink government, reduce welfare dependency, and above all make the necessary changes in schooling so that new generations will grow up knowing the value of freedom?

Be free and prosper 128

There are a few countries that have not been plunged into recession by the almost global economic crisis. Some have prospered in the midst of it, though not because of it.

The fall in US real estate values, unemployment, and deep debt were caused by socialist policies, as Thomas Sowell explains in his new book, The Housing Boom and Bust. Find an excerpt from it here.

The countries that have prospered have done so as a result of sticking to free market policies. Here are two examples:

1.  Chile is a shining model.

From Investor’s Business Daily:

Chile is expected to win entry to OECD’s club of developed countries by Dec. 15 — a great affirmation for a once-poor nation that pulled itself up by trusting markets. One thing that stands out here is free trade.

At a summit of Latin American countries last week in Portugal, Chilean President Michelle Bachelet suddenly became the center of attention — and rightly so. She announced that her country was expected to win membership in the Organization of Economic Cooperation and Development, an exclusive club of the richest and most economically credible nations. …

For the rest of us, it’s a stunning example of how embracing free markets and free trade brings prosperity.

It’s not like Chile was born lucky. Only 30 years ago, it was an impoverished country with per capita GDP of $1,300. Its distant geography, irresponsible neighbors and tiny population were significant obstacles to investment and growth. And its economy, dominated by labor unions, wasn’t just closed, but sealed tight.

In the Cato Institute’s 1975 Economic Freedom of the World Report it ranked a wretched 71 out of 72 countries evaluated.

Today it’s a different country altogether. Embracing markets has made it one of the most open economies in the world, ranking third on Cato’s index, just behind Hong Kong and Singapore. Per capita GDP has soared to $15,000.

Besides its embrace of free trade, other reforms — including pension privatization, tax cuts, respect for property rights and cutting of red tape helped the country grow not only richer but more democratic, says Cato Institute trade expert Daniel Griswold.

But the main thing, Griswold says, is that the country didn’t shift course. “Chile’s economy is set apart from its neighbors, because they have pursued market policies consistently over a long period,” he said. “Free trade has been a central part of Chile’s success.”

Chile has signed no fewer than 20 trade pacts with 56 countries, giving its 19 million citizens access to more than 3 billion customers worldwide. When no pact was in force, Griswold notes, Chile unilaterally dropped tariffs. This paid off handsomely. …

The success belies claims, made mostly by protectionist unions, that free trade is a job killer and source of misery.

It’s also a reminder of how the U.S. has lagged on trade agreements, signing just 11 with 17 countries since 1993 — one reason why its ranks just 17th on Cato’s 2009 Index of Economic Freedom.

Despite the recession, American trade pacts with Colombia, Panama and Korea are languishing into a fourth year, and treaties were nowhere to be found on the agenda at last week’s big White House jobs summit.

By contrast, Chile got to where it is by embracing trade. Its example is a shining lesson of how prosperity can be achieved no matter what the challenges — a lesson the U.S. would do well to relearn as our recovery tries to get traction.

2. Israel is thriving economically, and as a result so is the West Bank.

Here’s an extract from a Wall Street Journal article by Tom Gross, who visited the West Bank recently:

The shops and restaurants were  full when I visited Hebron recently, and I was surprised to see villas comparable in size to those on the Cote d’Azur or Bel Air had sprung up on the hills around the city. Life is even better in Ramallah, where it is difficult to get a table in a good restaurant. New apartment buildings, banks, brokerage firms, luxury car dealerships and health clubs are to be seen. In Qalqilya, another West Bank city that was previously a hotbed of terrorists and bomb-makers, the first ever strawberry crop is being harvested in time to cash in on the lucrative Christmas markets in Europe. Local Palestinian farmers have been trained by Israeli agriculture experts and Israel supplied them with irrigation equipment and pesticides.

A new Palestinian city, Ruwabi, is to be built soon north of Ramallah. Last month, the Jewish National Fund, an Israeli charity, helped plant 3,000 tree seedlings for a forested area the Palestinian planners say they would like to develop on the edge of the new city. Israeli experts are also helping the Palestinians plan public parks and other civic amenities.

Outsiders are beginning to take note of the turnaround too. The official PLO Wafa news agency reported last week that the 3rd quarter of 2009 witnessed near-record tourism in the Palestinian Authority, with 135,939 overnight hotel stays in 89 hotels that are now open. Almost half the guests come from the U.S or Europe.

Palestinian economic growth so far this year—in a year dominated by economic crisis elsewhere—has been an impressive 7% according to the IMF, though Palestinian Prime Minister Salam Fayad, himself a former World Bank and IMF employee, says it is in fact 11%, partly helped along by strong economic performances in neighboring Israel. …

In June, the Washington Post’s Jackson Diehl related how Palestinian President Mahmoud Abbas had told him why he had turned down Ehud Olmert’s offer last year to create a Palestinian state on 97% of the West Bank (with 3% of pre-1967 Israeli land being added to make up the shortfall). “In the West Bank we have a good reality,” Abbas told Diehl. “The people are living a normal life,” he added in a rare moment of candor to a Western journalist. [Well, this may be partly why, but the main reason is that acceptance of a Palestinian state would entail acceptance of the Jewish state, a reversal of Arab policy which no Palestinian leader would dare attempt – JB]

Nablus stock exchange head Ahmad Aweidah went further in explaining to me why there is no rush to declare statehood, saying ordinary Palestinians need the IDF to help protect them from Hamas, as their own security forces aren’t ready to do so by themselves yet.

The truth is that an independent Palestine is now quietly being built, with Israeli assistance. …

Read it all here.

Posted under Commentary, Economics, Israel, Latin America, middle east, Socialism, United States by Jillian Becker on Saturday, December 5, 2009

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The choice 6

An editorial in the Wall Street Journal titled The Welfare State and Military Power shows why redistributive domestic policy necessarily leads to the decline of power. In other words, socialism weakens the nation. And that is what Obama and the Democrats want to do.  As we have reiterated (see below, The two-horse rider and Obama’s grandiose equivocation), it is a choice between liberty and power  (and, we should add, prosperity) on the one side, or collectivism and decline (and impoverishment) on the other.

Has the moment of decision come and gone with the election of Obama? Has America already freely chosen to be unfree?

Or is it coming now with the push to nationalize health care, put the economy under government control, and begin the disarmament of America?

If now, which way will  America choose to go?

Here’s an extract from the WSJ article:

Welfare spending [in Europe] has crowded out defense spending. The political imperative of health care and pensions always trumps defense spending, save perhaps in a hot war. Europe may never again be able to muster public support for a defense buildup of the kind the U.S. undertook to end the Cold War in the 1980s, or even the smaller surge after 9/11.

The tragic irony of this year is that Democrats are rushing the U.S. down this same primrose entitlement path. With ObamaCare certain to eat up several more percentage points of GDP as it inevitably expands, we will take a giant step toward European social priorities.

For many Democrats, this is precisely the goal. Many Europeans, such as those at the Financial Times, will also welcome America’s relative decline. But we doubt the American people fully understand what such a gilded entitlement cage means for our national vitality, or for our ability to defend U.S. interests at home and abroad. …

President Obama’s domestic agenda may well mean that his successors lack the option to deploy 100,000 troops to Afghanistan, or to some other future trouble spot. This is the way superpowers lose their superiority.

Are we saved? 109

At last we atheists believe in the existence of a Savior of Mankind. We don’t know his name. We only know he’s a simple hacker.

He’s saved us from incalculable harm.

Or at least we hope he has.

When short-sighted capitalists and blind communist ideologues meet next week in Copenhagen, will they yet succeed in impoverishing and enslaving us in the name of saving the planet from global warming? Even though the hacker has revealed that the ‘science’ is fraudulent?

From Canada Free Press:

The upcoming Copenhagen meeting sponsored by the United Nations had hoped for a global redistribution of wealth over the next 20 years of between $6 trillion and $10.5 trillion, according to the draft treaty, to “Compensate for damage to the less developed countries’ economy and also compensate for lost opportunities, resources, lives, land and dignity, as many will become environmental refugees.” Third world governments see dollar signs.

In the U.S., the Treasury Department estimates that the president’s cap-and-trade approach would “generate federal receipts on the order of $100- to $200 billion annually.” The Congressional Budget Office reports that a 15 percent CO2 reduction would cost an average household $1,600 a year.

The U.N. Intergovernmental Panel on Climate Change (IPCC) is a bureaucrat’s paradise that exists solely to perpetrate the myth, while enjoying frequent meetings at exotic venues throughout the world.

Many governments maintain bureaucracies just to “study” the myth. In the U.S., it’s the Global Change Research Program. NOAA [National Oceanic and Atmospheric Association], the Goddard Institute for Space Studies, the National Climate Change and Wildlife Center of the USGS [US Geological Survey], and the EPA [Environmental Protection Agency] are just a few other federal agencies feeding at the trough.

Over the last 20 years, the US government spent $32 billion on climate research, yet has failed to find any evidence that carbon dioxide emissions significantly affect temperature or represent a danger. Government agencies, the private sector, and universities were the recipients of this money. These organizations have a vested interest in maintaining the myth.

The feds also spent another $36 billion for development of climate-related technologies in the form of subsidies and tax breaks. Solar and wind-power generation of electricity can be a supplemental supply, but these methods could not compete with fossil fuels without a subsidy. These industries have a vested interest in maintaining the myth.

The ethanol industry is founded solely on the myth that we must reduce our use of fossil fuels, even though the U.S. has abundant supplies.

The American Recovery and Reinvestment Act (Bailout bill) contained $3.4 billion for research and experimentation in the area of carbon sequestration – burying carbon dioxide generated by fossil fuel plants. There are also, really wild schemes for geoengineering, schemes to block the sun with mirrors, or seed the atmosphere with sulfur to produce more clouds.

On the world commodities market, trading carbon credits generated $126 billion in 2008, and big banks are collecting fees, and some project a market worth $2 trillion. Al Gore’s venture capital firm, Hara Software which makes software to track greenhouse gas emissions, stands to make billions of dollars from cap-and-trade regulation. If the myth is destroyed, this market will evaporate.

Back in 2007, a coalition of major corporations and environmental groups formed the U.S. Climate Action Partnership (USCAP) to lobby for cap & trade. The companies planned to profit (at least in the short term) from either the cap-and-trade provisions or from selling high-priced, politically-favored (if not mandated) so-called “green” technology to the rest of us — whether we need it or not, and regardless of whether it produces any environmental or societal benefits.

Corporate USCAP members include: Alcoa, BP America, Caterpillar Inc., Dow Chemical, Duke Energy, DuPont, FPL Group, Exelon, General Electric, Lehman Brothers, John Deer & Co, PG&E Corporation, and PNM Resources. …

The vested interests are strong and many. Is the global warming industry “too big to fail?” It remains to be seen whether those interests, and [collectivist] political ideology will triumph over truth and common sense.

A good question 5

With his usual incisive clarity, Thomas Sowell asks:

Since this is an era when many people are concerned about “fairness” and “social justice,” what is your “fair share” of what someone else has worked for?

It would be fascinating to hear a redistributionist’s attempt to answer the question.

Posted under Commentary, communism, Economics, Socialism by Jillian Becker on Tuesday, December 1, 2009

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Death city 188

Detroit is a dying city. How many more American cities will fall into decay and despair as Obama and the Democrats bankrupt the nation?

From the Times Online:

The abandoned corpses, in white body bags with number tags tied to each toe, lie one above the other on steel racks inside a giant freezer in Detroit’s central mortuary, like discarded shoes in the back of a wardrobe.

Some have lain here for years, but in recent months the number of unclaimed bodies has reached a record high. For in this city that once symbolised the American Dream many cannot even afford to bury their dead.

“I have not seen this many unclaimed bodies in 13 years on the job,” said Albert Samuels, chief investigator at the mortuary. “It started happening when the economy went south last year. I have never seen this many people struggling to give people their last resting place.”

Unburied bodies piling up in the city mortuary — it reached 70 earlier this year — is the latest and perhaps most appalling indignity to be heaped on the people of Detroit. The motor city that once boasted the highest median income and home ownership rate in the US is today in the midst of a long and agonising death spiral.

After years of gross mismanagement by the city’s leaders and the big three car manufacturers of General Motors, Ford and Chrysler, who continued to make vehicles that Americans no longer wanted to buy, Detroit today has an unemployment rate of 28 per cent, higher even than the worst years of the Great Depression.

The murder rate is soaring. The school system is in receivership. The city treasury is $300 million (£182m) short of the funds needed to provide the most basic services such as rubbish collection. In its postwar heyday, when Detroit helped the US to dominate the world’s car market, it had 1.85 million people. Today, just over 900,000 remain. It was once America’s fourth-largest city. Today, it ranks eleventh, and will continue to fall.

Thousands of houses are abandoned, roofs ripped off, windows smashed. Block after block of shopping districts lie boarded up. Former manufacturing plants, such as the giant Fisher body plant that made Buicks and Cadillacs, but which was abandoned in 1991, are rotting. …

Read more of this depressing stuff, if you want to, here.

Posted under Economics, United States by Jillian Becker on Saturday, November 21, 2009

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Bad for your health 67

From The Heritage Foundation:

A report released Friday by the non-partisan and independent Centers for Medicare and Medicaid Services, the agency in charge of running Medicare and Medicaid, blows the lid off of every one of Obama’s claims. All of the following quotes are from the report itself:

Health Care Costs Increase: “In aggregate, we estimate that for calendar years 2010 through 2019 [national health expenditures (NHE)] would increase by $289 billion, or 0.8 percent, over the updates baseline projection that was released on June 29, 2009.” In other words, Obamacare bends the cost curve up, not down.

Millions Lose Existing Private Coverage: “However, a number of workers who currently have employer coverage would likely become enrolled in the expanded Medicaid program or receive subsidized coverage through the Exchange. For example, some smaller employers would be inclined to terminate their existing coverage, and companies with low average salaries might find it to their – and their employees’ – advantage to end their plans … We estimate that such actions would collectively reduce the number of people with employer-sponsored health coverage by about 12 million.” In other words, Obamacare will cause millions of Americans to lose their existing private coverage.

Millions Pay Fines Yet Remain Uncovered: “18 million are estimated to choose not to be insured and to pay the penalty associated with the individual mandate. For the most part, these would be individuals with relatively low health care expenses for whom the individual or family insurance premium would be significantly in excess of the penalty and their anticipated health benefit value.” In other words, 18 million Americans will either face jail time or be forced to pay a new tax they will receive no benefit from.

Millions Lose Medicare Advantage: “Section 1161 of Division B of H.R. 3962 would set Medicare Advantage capitation benchmarks … We estimate that in 2014 when the MA provisions would be fully phased in, enrollment in MA plans would decreased by 64 percent (from its projected level of 13.2 million under current law to 4.7 million under the proposal).” In other words, 8.5 million seniors who currently get such services as coor dinated care for chronic conditions, routine eye and hearing examinations, and preventive-care services would lose their existing private coverage.

Millions Placed on Welfare: “Of the additional 34 million who are estimated to be insured in 2019 as a result of H.R. 3962, about three-fifths (21 million) would receive Medicaid coverage due to the expansion of eligibility to those adults under 150 percent of the FPL.” In other words, more than half the people who gain health insurance will receive it through the welfare program Medicaid. 

Seniors Access to Care Jeopardized: “H.R. 3962 would introduce permanent annual productivity adjustments to price updates for institutional providers… Over time, a sustained reduction in payment updates, based on productivity expectations that are difficult to attain, would cause Medicare payment rates to grow more slowly than and in a way that was unrelated to, the providers’ costs of furnishing services to beneficiaries. Thus, providers for whom Medicare constitutes a substantive portion of their business could find it difficult to remain profitable and might end their participation in the program (possibly jeopardizing access to care for beneficiaries).” In other words, the Medicare cuts in the House bill are so out of touch with reality that hospitals currently serving Medicare patients might be forced to stop doing so. Thus making it much more difficult for seniors to get health care.

Poor’s Access Problems Exacerbated: “In practice, supply constraints might interfere with providing the services by the additional 34 million insured persons. …providers might tend to accept more patients who have private insurance (with relatively attractive payment rates) and fewer Medicaid patients, exacerbating existing access problems for the latter group.” In other words, those 21 million people who are gaining health insurance through Medicaid are going to have a very tough time finding a doctor who will treat them.

Posted under Commentary, Economics, government, Health, Socialism, United States by Jillian Becker on Monday, November 16, 2009

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What lies beneath the Chukchi Sea 139

That ex-governor Sarah Palin is a lot smarter and better informed than vice-president Joe Biden is proved yet again by a new report on energy, commented on by Investor’s Business Daily (at their Investors.com website):

As Palin jousts with Biden on energy independence, the government reports that we lead the world in energy reserves. From oil to gas to coal, we are sitting on prosperity. So why are we importing anything?

One of the interesting sidelights of the NY-23 race was an exchange on energy independence between Vice President Joe Biden and the former governor of energy-rich Alaska, Sarah Palin. Biden, who came in to campaign for Democrat Bill Owens, was reminded of the issue of energy.

“The fact of the matter is that Sarah Palin thinks the answer to energy was ‘Drill, baby, drill,'” Biden said at an Owens fundraiser, referring to Palin’s own campaign slogan last year. “No, it’s a lot more complicated, Sarah, than ‘Drill, baby, drill.'”

Actually, it’s not, according to a new report produced by the Congressional Research Service, hardly an outpost of the vast right-wing conspiracy or on the payroll of Big Oil. The report says that if all our energy resources are added up and converted to a barrels of oil equivalent (BOE), the U.S. has the largest reserves in the world.

According to the CRS, the U.S. has 1,321 billion barrels of oil (or barrels of oil equivalent for other sources of energy) if you combine its recoverable natural gas, oil and coal reserves. Russia is close behind with 1,248 billion barrels BOE. Other energy-producing nations, including many that export oil to the U.S., lag behind.

Of course, much of our world-leading reserves are off-limits by government edict. We recently commented on the federal government designation of 200,541 squares miles off the coast of Alaska as critical habitat for the abundant polar bear, effectively killing hopes to exploit the vast energy riches of the American Arctic.

Alaska’s Chukchi Sea, part of the designated habitat, holds more oil and gas than anyone thought — 1,600 trillion cubic feet of undiscovered gas, or 30% of the world’s supply and 83 billion barrels of undiscovered oil, 4% of the estimated global resources.

The CRS report also notes the U.S. has 28% of the world’s coal reserves, with Russia again coming in second with 19%. …

Cuba: seeking a road back from serfdom? 213

From Newsmax:

President Raul Castro …  called for a national dialogue on the future of the country’s socialist system in an August speech.

Since then, authorities have set up discussions at universities, government workplaces and under the glow of street lamps. Community organizations called Committees for the Defense of the Revolution — created in part to root out anti-government activity — are now tasked with collecting criticism of the socialist system, along with suggestions for how to reform it.

Declining revenues and mounting debts have stretched the Cuban government to the point that it must trim some of its longstanding entitlement programs, Castro told the National Assembly during the August speech.

“Nobody, no individual nor country, can indefinitely spend more than she or he earns. Two plus two always adds up to four, never five,” he said. “Within the conditions of our imperfect socialism, due to our own shortcomings, two plus two often adds up to three.”

That losing formula has the Cuban government increasingly exhorting its citizens to work harder, expect less and come up with solutions to their own problems.

The input is funneled upward to Cuba’s leaders and will ostensibly be used to guide the reform process. Similar discussions soliciting criticism and ideas were gathered during a round of open-air discussions called by Castro in 2007. The government collected 1.3 million opinions from residents during that period, Castro said, nearly half of which were criticisms of one problem or another.

While Cuban authorities have made it clear that major political and economic reforms to the country’s one-party system are not on the discussion agenda, participants at the meetings are being encouraged to speak freely and openly about problems in their daily lives.

Many Cubans simmer with frustration brought by chronic transportation and housing shortages, a gargantuan state bureaucracy and salaries that average roughly $20 a month, even though most consumer goods in state-run stores are priced above what they would cost in the United States.

Subsidies for food, utilities and other basics offset those meager earnings, but as the government’s fortunes decline, authorities are increasingly telling Cubans to tackle their own problems. One high-ranking party official recently said Cubans can’t expect for the “daddy state” to fix everything, waiting with open mouths “like baby birds.”

Such a statement is “offensive” to the Cuban people, said dissident economist Oscar Espinosa Chepe, who has spent time in prison for his opposition to the government.

This system was designed to control everyone, so it’s absurd that the official propaganda talks about the ‘daddy state,’” he said, referring to Cuba’s government-run media. “It’s as if the Cuban people were to blame for this economic debacle, and not the government. The government is to blame for the way Cubans behave, because this is the system it created.”

Espinosa Chepe said Cubans would gladly solve their own problems if the government would allow for more small businesses and other forms of economic independence. …

Two major rollbacks of the island’s socialist system are now under consideration, and both involve major government programs that, though often criticized, deliver basic nutrition staples to all Cubans. The first proposed reform would gradually eliminate the workplace cafeterias that provide nearly-free lunches to a third of the island’s population each weekday, at a cost of more than $350 million a year. Instead, workers will receive a cash stipend, doubling the average workers’ salary.

The second major reform threatens to eliminate the ration-card system that provides every Cuban with about two weeks’ worth of food at highly subsidized prices, but is beset by inefficiencies. In the name of egalitarianism, the program doles out the same amount of food to everyone, even to those who don’t need it. [Who could those be? – JB]

Earlier this month in a much-discussed editorial that appeared in the communist party daily Granma, editor Lazaro Barredo Medina said the ration book had become a drag on the state’s struggling finances and reform efforts. “The ration booklet was a necessity at one time, but it has become an impediment to the collective decisions the nation must take,” he said.

His words touched off rampant speculation about the imminent demise of the ration system. But it’s not clear how the Cuban government would be able to quickly implement such a measure, since so many seniors and low-income families depend heavily on it. Cuba has no income-tax system and a vast black market economy, so ascertaining citizens’ real earnings for the purpose of welfare eligibility would be extremely difficult.

Then there is the threat of inflation.

“Getting rid of the ration book seems like a good move, but only if salaries can keep pace with the price of food,” said Aurelio Alonso, deputy editor of Cuba’s Casa de las Americas journal.

For Cubans to be able to pay market prices for food, worker salaries would have to double or triple, he said, and that would bring inflation if food supplies remain the same. “And that would be a big problem,” he said.

Still, Alonso said he sees the younger Castro as a practical man who understands economics, and he expects further reforms to follow. “You can’t have social justice and social goods if you don’t have an economy capable of sustaining it.”

And if you have an economy capable of sustaining ‘social justice’ and ‘social goods’, you’ll wreck it if you put it to that use.

The choice is freedom or collectivism. You cannot have both. They are mutually exclusive. Freedom brings plenty, collectivism brings want. Will the ‘practical man who understands economics’ – Raul Castro – ever get to understand that?

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