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?

Busting Copenhagen’s phantom 114

From Investors.com (Investor’s Business Daily):

With less than two months to go before the big Copenhagen Conference on global warming, two major nations have said “no thanks” to the no-growth agenda. For that reason alone, so should we.

Following a deal signed late Thursday between China and India, anything we might agree to do in Copenhagen is likely moot anyway. The two mega-nations — which together account for nearly a third of the world’s population — said they won’t go along with a new climate treaty being drafted in Copenhagen to replace the Kyoto Protocol that expires in 2012.

They’re basically saying no to anything that forces them to impose mandatory limits on their output of greenhouse gas emissions. Other developing nations, including Mexico, Brazil and South Africa, will likely reject any proposals as well.

The deal was already in trouble. Three weeks ago, the Group of 77 developing nations met in Thailand to discuss what they wanted to do about global warming. Their answer: nothing. …

They see clearly what the rest of us seem to miss — that, for all its bad science, the Copenhagen Conference is about the world’s Lilliputians tying down its Gullivers, not about global warming at all.

So, thanks to China and India, Copenhagen is dead — just as Kyoto was when it was signed in 1992, though no one knew it at the time. Without them, no global treaty on climate change will be workable.

The two nations are not only the world’s most populous (with, together, more than 2 billion people), they are also the fastest-growing major countries. China is now the world’s No. 1 emitter of greenhouse gases, and India is catching up fast.

Even with their participation, Copenhagen should have been a non-starter for the U.S. Indeed, the main reason for the greenhouse gas deal, all but admitted to by its major participants, is to cripple the U.S. economy — the most successful economy in the world.

True enough, as green critics keep saying, we produce nearly 20% of the world’s CO2 and other greenhouse gases with just 5% of the world’s population. But our GDP of roughly $14 trillion is nearly 25% of the world’s total — in line with our gas output.

We provide jobs and consumption not just for Americans, but for tens of millions of people overseas whose livelihoods depend on satisfying the massive American market.

In case you’re still worried about warming, stop. Since 1998, the data show global temperatures have fallen. The Intergovernmental Panel on Climate Change says this can’t be happening. None of the IPCC’s models shows a possibility of rising CO2 output and declining temperature.

But even Paul Hudson, the pro-warming-theory BBC climate correspondent, recently had to admit: “For the last 11 years, we have not observed any increase in global temperatures. And our climate models did not forecast it, even though man-made carbon dioxide, the gas thought to be responsible for warming our planet, has continued to rise.”

Yet, the IPCC estimates that “remediation” of the warming trend will cost about 1.7% of world GDP. In the U.S., that’s about $240 billion a year. For the entire world, it’s about $1 trillion a year — or $71 trillion over the next 70 years or so.

Proposals to slash CO2 won’t work anyway. Department of Energy estimates indicate that 97% of all CO2 emissions would continue even if humans didn’t exist.

Even so, climatologist Chip Knappenberger estimates that laws like the recent Waxman-Markey bill would, if fully enacted, reduce future warming by just 0.2 degrees Celsius by 2100 — not enough even to measure accurately.

Can the world really afford to give up $71 trillion in the coming decades to solve a phantom problem?

Given the shoddiness of the science behind warming claims and the refusal of the biggest CO2 emitters to play along with the climate change sham, it would be economically ruinous for the U.S. to do anything other than wish the rest of the world a nice day, and go about our business.

An answer 9

One of our readers, Hawk2, has commented on our post below, Question, providing the sort of answer we are looking for.

We think his/her comments are so interesting that we are posting them in full here on our front page.

US foreign policy should be grounded in two essential considerations, and only these two:

1. Profitable trade

2. National security

With these in mind, the only recent war that must be seen to have had no justification whatsoever is President Clinton’s war in the Balkans. It did nothing for trade. It gained America nothing. It was not worth what it cost. What is worse, its rationale was the protection of Muslim rebels, at a time when Islam was fast becoming the major enemy of the Western world.

Oil is a very good reason to go to war. It satisfies both considerations. If the US had gone to war to seize the Saudi Arabian oilfields in 1974 when the price of oil was hyped as an attack on the US economy, it would have been right to do so.

If the wars against Saddam Hussein were waged for oil, they were necessary and worth what they cost. Also if they were waged to protect America from WMD, they were necessary and worth what they cost. If, on the other hand, they were waged to protect Kuwait from conquest, or Iraqis from tyranny, they were unnecessary and not worth what they cost.

The war against the Taliban/al-Qaeda was justified by 9/11. But having soundly beaten the Taliban, the US should have withdrawn, leaving a clear message that if the US were struck again the Taliban would be beaten again. Staying on to build schools and clinics which the Taliban will demolish is senseless, and not worth what it costs. There is no saving the Afghans from themselves: from corruption, the subjugation of women, the growing of opium.

As to the argument that it is always in the interests of the US to protect freedom in the wider world, that is true, but the threat to freedom must be a real one. It was why America was right to go to Europe’s aid in the in the First and Second World Wars. It may be a reason for America to go to war again. America’s own freedom was under threat then as it is now, this time by the creeping colonization of Europe by Islam. ‘Spreading democracy’ – another reason given for the wars in Iraq and Afghanistan – does not guarantee the spread of freedom. Germany was a democracy when Hitler came to power by being democratically elected. Zalaya was democratically elected in Honduras, and was deposed because he was trying to establish his dictatorship. But the State Department insists that he should be reinstated. This is staggeringly stupid if not treacherous. The preservation of freedom on the South American continent wherever it exists is plainly essential to US security. Hostile regimes in the hemisphere are a serious threat, as Hugo Chavez proves by his alliance with would-be-nuclear-armed Iran.

This reasoning would fully justify an immediate military attack on Iran and North Korea.

They’re laughing in Moscow 144

A Russian writer observes how the present US administration, which he recognizes plainly as Marxist, is intent on implementing the very policies that wrecked the Soviet economy.

Stanislav Mishin writes in Pravda:

It can be safely said, that the last time a great nation destroyed itself through its own hubris and economic folly was the early Soviet Union (though in the end the late Soviet Union still died by the economic hand). Now we get the opportunity to watch the Americans do the exact same thing to themselves. The most amazing thing of course, is that they are just repeating the failed mistakes of the past. One would expect their fellow travelers in suicide, the British, to have spoken up by now, but unfortunately for the British, their education system is now even more of a joke than that of the Americans.

While taking a small breather from mouthing the never ending propaganda of recovery, never mind that every real indicator is pointing to death and destruction, the American Marxists have noticed that the French and Germans are out of recession and that Russia and Italy are heading out at a good clip themselves. Of course these facts have been wrapped up into their mind boggling non stop chant of “recovery” and hope-change-zombification. What is ignored, of course, is that we and the other three great nations all cut our taxes, cut our spending, made life easy for small business…in other words: the exact opposite of the Anglo-Sphere.

That brings us to Cap and Trade. Never in the history of humanity has a more idiotic plan been put forward and sold with bigger lies. Energy is the key stone to any and every economy, be it man power, animal power, wood or coal or nuclear. How else does one power industry that makes human life better (unless of course its making the bombs that end that human life, but that’s a different topic). Never in history, with the exception of the Japanese self imposed isolation in the 1600s, did a government actively force its people away from economic activity and industry. …

Read it all here.

Freedom requires energy independence 203

This is from an article by Sarah Palin in the National Review (read it all here):

In addition to drilling, we need to build new refineries. America currently has roughly 150 refineries, down from over 300 in the 1970s. Due mainly to environmental regulations, we haven’t built a major new refinery since 1976, though our oil consumption has increased significantly since then. That’s no way to secure our energy supply. The post-Katrina jump in gas prices proved that we can’t leave ourselves at the mercy of a hurricane that knocks a few refineries out of commission.

Building an energy-independent Amer ica will mean a real economic stimulus. It will mean American jobs that can never be shipped overseas. Think about how much of our trade deficit is fueled by the oil we import — sometimes as much as half of the total. Through this massive transfer of wealth, we lose hundreds of billions of dollars a year that could be invested in our economy. Instead it goes to foreign countries, including some repressive regimes that use it to fund activities that threaten our security.

Reliance on foreign sources of energy weakens America. When a riot breaks out in an OPEC nation, or a developing country talks about nationalizing its oil industry, or a petro-dictator threatens to cut off exports, the probability is great that the price of oil will shoot up. Even in friendly nations, business and financial decisions made for local reasons can de stabilize Amer i­ca’s energy market, since the price we pay for foreign oil is subject to rising and falling exchange rates. Decreasing our dependence on foreign sources of energy will reduce the impact of world events on our economy.

In the end, energy independence is not just about the environment or the economy. It’s about freedom and confidence. It’s about building a more secure and peaceful America, an America in which our energy needs will not be subject to the whims of nature, currency speculators, or madmen in possession of vast oil reserves. …

To Sarah Palin freedom is a high ideal, perhaps the highest. To Obama it is not. On the contrary, he is a collectivist. No argument for freedom will move him.

Posted under Commentary, Economics, Energy, Environmentalism, Socialism, United States by Jillian Becker on Saturday, October 17, 2009

Tagged with , , ,

This post has 203 comments.

Permalink

A woman-made environmental disaster 96

Speaker of the House Nancy Pelosi is the prime mover in restricting the supply of water to the farms of California’s hitherto fertile Central Valley, so severely that the farmers are going out of business with  dire consequences. Food production is dropping, and local unemployment is 40% and rising.

She is doing this in order, ludicrously, to save the hypomesus transpacificus, a wee fish that she and her fellow environmentalists apparently believe the world cannot conceivably do without. [See our post below, Smelt fishy, 2 September, 2009]

You would think, wouldn’t you, that Nancy Pelosi is passionate about preserving endangered species?

Yet, according to the American Spectator, she herself circumvented ESA [Endangered Species Act] requirements for two endangered species on one of her own investment properties‘.

While hypocrisy so characterizes the left that no new instance of it can be surprising, the wickedness of what Pelosi is doing is too outrageous to be passed over with a sigh.

This is an abuse of power that should be punishable by law. Is it? If not, why not?

Mike Adams, at Townhall, while telling the story of one farmer’s ruin, points out more consequences of this scandal:

For nearly 20 years, California’s water availability has been precariously tied to decisions made by bureaucrats and politicians using the power of the Endangered Species Act. The effects of the far-reaching ESA could ultimately lead to the destruction of one of the most fertile valleys in the world, the reduction of the nation’s food supply and greater dependence on foreign food sources that don’t meet high U.S. food standards. The use of this overriding legislation that mandates federal control of our nation’s land and water is representative of the overall trend in this country of increased government intrusion into the lives of its citizens. That a statutory decree exists that can override human suffering in the service of preserving animal habitats is a serious indictment of our government’s commitment to preserve liberty and the American way of life. …

In August, fifty mayors from the San Joaquin Valley asked President Obama to come see the devastation first-hand. He refused. Obama previously denied a request to designate California as a federal disaster area. To do so would have acknowledged the fact that Obama’s radical environmental policies are, quite literally, scorched earth policies. Just go to the San Joachim Valley and you’ll see plenty of scorched earth.

What is to be done? 73

John Hinderaker of Power Line quotes Lawrence Kadish (writing in the Wall Street Journal, October 12):

It is the interest on the national debt that makes our future unstable. The exploding size of that burden suggests that, short of devaluing the dollar and taking a large bite out of the middle class through inflation and taxation, there is no way to ever pay down that bill. …

In stark but simple terms, unless Americans are made aware of this financial crisis and demand accountability, the very fabric of our society will be destroyed. Interest rates and interest costs will soar and government revenues will be devoured by interest on the national debt. Eventually, most of what we spend on Social Security, Medicare, education, national defense and much more may have to come from new borrowing, if such funding can be obtained. Left unchecked, this destructive deficit-debt cycle will leave the White House and Congress with either having to default on the national debt or instruct the Treasury to run the printing presses into a policy of hyperinflation.

It is against this background that Washington is now debating whether to create social programs it can’t afford.

He comments on this – and we agree:

It is hard to overestimate the danger to which the fecklessness of our current leaders in Washington exposes the nation.

But if  Americans are ‘made aware’ of the great danger they are in – and many of them are aware, as witness the tea parties and the 9/12 protest – what can and should they do about it? ‘Demanding accountability’ would not be enough, even if they got it.

Encore 102

From Power Line:

One would think that at least two lessons would have been learned from the financial crisis: stop pushing loans to people who cannot or will not pay them back and stop offering loans with “flexible underwriting criteria.” Not so. The Obama administration and Democrats in Congress are pushing their most audacious plan yet expanding the Community Reinvestment Act (CRA) which helped spark the crisis in the first place.

Read it all here.

Posted under Commentary, Economics, News, Progressivism, Socialism, United States by Jillian Becker on Monday, October 5, 2009

Tagged with , ,

This post has 102 comments.

Permalink

Being really nice to democratic Libya 73

From a report by John Rossomando at Newsmax:

The White House declined to comment on a letter that an Illinois Republican sent to President Obama demanding that he cancel funding for two $200,000 State Department grants to groups belonging to Libyan dictator Moammar Gadhafi’s children.

Rep. Mark Kirk wrote the letter after the State Department notified the House Appropriations Committee on Sept. 15 of its intent to provide the foundation belonging to the Libyan dictator’s son, Saif, with a $200,000 and an additional $200,000 to Wa’ettasmeno UNDP Foundation run by his daughter, Aisha.

“Last month, when Scotland freed Abel Baset al-Megrahi, the only man convicted in the bombing of Pan Am Flight 103, Gadhafi greeted him with a hero’s welcome,” Kirk wrote in his Sept. 23 letter to President Obama. “As you know, Megrahi was accompanied back to Libya by Gadhafi’s son, Saif, who was involved with negotiations for Megrahi’s release. Just weeks after the Gadhafi family celebrated the return of a terrorist for the murders of 189 Americans, the U.S. taxpayer should not be asked to reward them with $400,000. For the sake of the victims’ families who have endured so much pain these last few weeks, I ask you to withdraw your Administration’s request.”

The State Department told Newsmax the grants were part of a larger $2.5 million economic support program intended to promote democracy and women’s economic opportunities in Libya, which Congress appropriated for fiscal year 2009.

Ah, that democracy, and all those opportunities for women in Libya! How proud we American tax-payers can be that we support them. If  only we’d known about them sooner!

Giving away two and half million to the needy in an economic crisis is being really, really nice. Michelle Obama used to think America was ‘downright mean’, but now that her husband is showering Ghadhafi’s family with largesse, she too can at last be proud of her country.

Palin for tax cuts 137

Here are passages from the speech Sarah Palin delivered in  Hong Kong on September 23 at the CLSA [Credit Lyonnais Securities Asia] Pacific Markets Conference, taken from excerpts published by the Wall Street Journal. More of the speech can be found here:

We got into this [economic] mess because of government interference in the first place. The mortgage crisis that led to the collapse of the financial market, it was rooted in a good-natured, but wrongheaded, desire to increase home ownership among those who couldn’t yet afford to own a home. In so many cases, politicians on the right and the left, they wanted to take credit for an increase in home ownership among those with lower incomes. But the rules of the marketplace are not adaptable to the mere whims of politicians…

Lack of government wasn’t the problem. Government policies were the problem. The marketplace didn’t fail. It became exactly as common sense would expect it to. The government ordered the loosening of lending standards. The Federal Reserve kept interest rates low. The government forced lending institutions to give loans to people who, as I say, couldn’t afford them. Speculators spotted new investment vehicles, jumped on board and rating agencies underestimated risks…

If you want real job growth, you cut taxes! And you reduce marginal tax rates on all Americans. Cut payroll taxes, eliminate capital gain taxes and slay the death tax, once and for all. Get federal spending under control, and then you step back and you watch the U.S. economy roar back to life. But it takes more courage for a politician to step back and let the free market correct itself than it does to push through panicky solutions or quick fixes…

I can’t wait until we get that Reaganomics sense supplied again because we are going to survive, and we’re going to thrive and expand and roar back to life. And as the world sees this, the world will be a healthier, more secure, safer and more prosperous place when this happens…

Right now we have the highest unemployment rate in 25 years, and it’s still rising. And yet some in D.C. are pushing a cap-and-tax bill that could cripple our energy industry or energy market and dramatically increase the rates of the unemployed, and that’s not just in the energy sector. American jobs in every industry will be threatened by the rising cost of doing business under this cap-and-tax plan. The cost of farming will certainly increase. That’s going to drive up the cost of groceries and drive down farm incomes. The cost of manufacturing, warehousing and transportation will also rise. We are all going to feel the effects. The Americans hardest hit will be those who are already struggling to make ends meet today, much less with this new tax every month…

With most of this we agree. We only don’t believe that people like Nancy Pelosi, Harry Reid, Barney Frank, and Chris Dodd  wanted to increase house ownership among those who couldn’t afford it out of good nature. We judge them less generously. We think they wanted to redistribute wealth and increase the power of government.

At present Palin seems to us to be not only the most charismatic of the Republicans who might be in the 2012 presidential race, but also, to judge by these remarks, one who might rescue the economy.

« Newer Posts - Older Posts »