Another Report About U.S. Need for More Immigrants

A New York Times article uses the need for employees in Miami’s restaurants to illustrate the U.S. need for more immigrants.[1]

“More immigrants have streamed into South Florida than to most American cities, and for decades, employers have relied on them to wash dishes, put up drywall and care for grandmothers. Still, there are not enough to fill Miami’s relentless boomtown demand for [restaurant] workers.”

“As unemployment rates nationwide have sunk to record lows, filching workers — from kitchens and construction sites, warehouses and Walmarts, truck cabs and nursing homes — has become routine. In cities like Miami that are magnets for immigrants, newcomers have filled some job openings, but employers across several industries and states insist that many more are needed for their businesses to function, let alone grow.”

“[M]ost economists say . . . that there is plenty of room [for immigrants]. Immigrants make the country richer, they argue. For example, Douglas Holtz-Eakin, a former director of the Congressional Budget Office who has advised Republican presidential candidates and now leads the conservative American Action Forum, says, “Without immigration, we shrink as a nation. . . .That’s because growth is driven by two ingredients: the size of the work force and how efficiently those workers produce things. And both are creeping well behind the postwar average.”

A key reason in this analysis is “Americans are having fewer babies. Birth rates fell last year to a three-decade low, ensuring that the next generation of native-born Americans will be smaller than the current one.”

Moreover, “using census data, the investment company the Blackstone Group estimates that without immigration, the working-age population between 25 and 64 years old would drop by 17 million by 2035. [Its Vice chairman of Private Wealth Solutions says,]“We really need immigrants. If we have a shrinking population, it’s going to be tough to have rising G.D.P.,” or gross domestic product.”

“At the moment, there are 7.3 million job openings nationwide and six million people unemployed. That gap is expected to widen as the number of retirees grows faster than the number of new workers.”

While some immigrants may take jobs from U.S. citizens, “they also help create jobs — by generating demand for goods and services like groceries, haircuts and homes.” In addition, “immigrants complement American workers. More educated women, for example, may decide to work if the availability of immigrants makes child care more affordable.”

This positive economic impact is seen in Dallas, Texas where 32.2% of all businesses are owned by immigrants while generating 55,000 jobs and nearly $495 million of business income. A study concluded that “immigrants tend to be more able, ambitious, aggressive and entrepreneurial than those who chose to stay in their place of origin.” [2]

Overhanging businesses, especially restaurants, in finding and hiring more workers is the legal risk of hiring undocumented individuals. In March and April of this year “the Social Security Administration sent letters to hundreds of thousands of business owners, notifying them that the names of some employees did not match the Social Security numbers on their tax forms.” In response some employers are planning to fire their undocumented workers or adopt more stringent hiring procedures such as using the E-Verify program to check the new hires’ documents .[3] If, however, the employers ignore these “no-match” letters, a subsequent immigration audit by Immigration and Customs Enforcement could conclude that they had “constructive knowledge” of their employees’ immigration status and thereby expose the employer to hefty fines and possible criminal charges.

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[1] Cohen, Is Immigration at Its Limit? Not for Employers, N.Y.Times (Aug. 22, 2019). This blog consistently has argued that the U.S. needs more immigrants. See, for example, these 2019 posts to dwkcommentaries.com: More Warnings of the Problems Facing U.S. Aging, Declining Population (Aug. 14, 2019); Additional Support for U.S. Needing More Immigrants (May 18, 2019); Trump Erroneously Says U.S. Is “Full,” (April 9, 2019); U.S. Construction Industry Needs More Immigrants (April 3, 2019); Businesses Need More Immigrants (Mar. 24, 2019);“America’s Farms Need Immigrants” (Mar. 22, 2019).

[2] Vizcaino, ‘What do you lose if you don’t have anything?–Why 1 in 3 Dallas businesses are owned by immigrants, Dallas Morning News (Aug. 16, 2019)

[3] Yaffe-Bellany, Hiring Is Very Hard for Restaurants These Days. Now They May Have to Fire, N.Y. Times (Aug. 23, 2019).

Washington Post Criticizes Commission on Unalienable Rights

An August 23, editorial in the Washington Post criticized the recently established U.S. Commission on Unalienable Rights.[1] It thereby joins this blog and many other voices in finding this Commission unnecessary and misguided.

According to the Post, Secretary of State Mike Pompeo has lamented so called “ad hoc rights” and “the proliferation of rights claims” and called for a return to fundamentals or “unalienable rights.” Yet to date the Secretary has not “spelled out what he means” or offered “a single concrete example of what rights he wants to curtail.” This has prompted many human rights advocates to complain that the true purpose of the Commission is to exclude women’s reproductive rights or LGBT rights.

President Trump, however, “does not adhere to principle on human rights.” Instead, these two leaders “have singled out abuses when it suits their purpose” while turning “a blind eye toward the unsavory activities of regimes they favor.”

Therefore, “rather than. . . [tweaking] definitions [of human rights], Mr. Pompeo should start honestly speaking the truth about the world’s most frequent and serious rights violators.” [2]

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[1]  Editorial, Why redefine U.S. policy on human rights?, Wash. Post (Aug. 23, 2019).

[2] A recent article about  Pompeo reports that as an unsuccessful Kansas businessman he had the financial backing of the Koch brothers; that this Koch support continued while Pompeo was a Congressman and fierce critic of President Obama’s foreign policy; that Pompeo in 2016 was determined to stop Trump from getting the GOP’s presidential nomination, but at the party’s National Convention that year had switched to supporting Trump; that Trump’s November 16, 2016, interview of Pompeo was the first time they had met; that Pompeo as director of the CIA held daily briefings with Trump and waged what a former White House official described as a “concerted campaign” to replace Rex Tillerson as Secretary of State; that the State Department’s Commission on Unalienable Rights, banning the gay-pride flag at U.S. diplomatic posts and scepticism about climate change are parts of “Pompeo’s own ideological agenda;” and that Pompeo is approaching the Secretary’s job “like a future Presidential candidate.” (Glasser, The Secretary of Trump, The New Yorker (Aug. 26, 2019).)

 

U.S.-Cuba Conflict Over Cuban Journalist

Roberto Jesús Quiñones, a contributor to the independent Cuban news website CubaNet, has a history of harassment by Cuban authorities. He is barred from leaving the country and has been detained several times. [1]

Most Recent Cuban Charges Against Journalist

The most recent Cuban persecution of Quiñones started on April 18, 2019, when police agents forcefully took him off of a bus, brought him to a police station, and interrogated him, with an officer telling him “we are taking note of your articles.”

Three days later (April 21) he was arrested outside of the Guantánamo Municipal Tribunal, where he was covering the trial of two Cuban evangelical pastors facing charges for homeschooling their children. While the police took him to the police station, he was beaten, injuring his mouth, tongue, and right thumb and causing an inflammation in his right ear.

When he was released from jail five days later, Cuban authorities initiated a new proceeding against him, alleging that his conduct during his detention constituted “resistance” and “disobedience,” for which they imposed a fine, which he refused to pay.

This refusal to pay the fine lead to a trial in a municipal court and to its August 7th  sentencing Quiñones, to one year in a labor camp on charges of “resistance” and “disobedience.” His appeal to another court for a new trial was denied on August 19.

After the most recent detention of Quiñones, the Committee to Protect Journalist’s Central and South America Program Coordinator Natalie Southwick said, “The ongoing pattern of detentions of independent journalists like Roberto Jesús Quiñones shows that recent political reforms have not improved the situation for the press. If President Miguel Díaz-Canel wants to show the world that his government is committed to positive change in Cuba, authorities should immediately free Quiñones without charge and stop harassing journalists.”

The one-year sentence also drew this rebuke from the Committee’s Deputy Executive Director Robert Mahoney in New York. “The fact that Roberto Quiñones is sentenced to prison for failing to pay a fine, while the police agents who beat and detained him for days receive no punishment, is outrageous. If authorities in Cuba want to convey an image of progress and openness to the international community, mistreating, jailing, and fining a journalist sends the wrong message.”

Secretary Pompeo’s Reaction

All of this prompted U.S. Secretary of State Michael Pompeo on August 21 to issue a statement condemning the journalist’s prosecution and calling “upon the Cuban regime to immediately release Mr. Quinones and to cease their abuse and mistreatment.” Pompeo also said his “detention and trial were marked by the flagrant disregard for legal norms that are typical of the Cuban regime.  Cuban authorities did not inform Quinones of the charges against him until minutes before the trial, and did not permit him legal representation in the courtroom.  The regime’s prosecutors did not permit Quinones to present evidence of his injuries at the hands of the police who arrested him. Adding cruelty to injustice, regime officials have refused to allow Quinones to visit his ailing father.”

Pompeo concluded with these words. “Sadly, this is just one more example of the Cuban regime’s ongoing violation of human rights, including the rights to freedom of expression and to fair trial guarantees.  We will continue to use targeted sanctions and trade restrictions to cut off resources from the Cuban regime, which uses its income to repress its own people, and to prop up the Maduro regime in Venezuela.”

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[1] Comm. to Protect Journalists, Cuban police detain and beat journalist Roberto Jesús Quiñones in Guantánamo (April 24, 2019); The regime sanctions independent journalist Roberto Jeśus Quiñones Haces to one year in jail, Diario de Cuba (Aug. 7, 2019); Comm. to Protect Journalists, Cuba sentences journalist Roberto Jesús Quiñones to one-year prison term (Aug. 8, 2019); The journalist Roberto Jesús Quiñones asks to have a new trial, Diario de Cuba (Aug. 12, 2019); The regime refuses to hold a new trial against Roberto Jesús Quiñones, Diario de Cuba (Aug. 19, 2019); U.S. State Dep’t, Press Statement: On the Prosecution of Cuban Journalist Roberto Quinones (Aug. 21, 2019); Assoc. Press, US Urges Cuba to Drop Criminal Charges Against Journalist, N.Y. Times (Aug. 21, 2019).

 

 

 

Decline of U.S. Visitors to Cuba   

In June 2019, the U.S. instituted a ban on cruise ships from a U.S. port going to Cuba. It had an immediate impact. That same month the number of U.S. visitors was down 20% from the prior June. And the similar figures for July 2019 were down 23.6%, and the Cuban government reduced its forecast of foreign visitors for the entire year to 4.3 million from the original forecast of more than 5 million; the new forecast is 8.5% drop from the 4.7 million visitors in 2018.[1]

This decline is impacting the state tourism sector as well as the many restaurants, bed-and-breakfasts and taxi drivers in the fledgling Cuban private sector that the U.S. says it wants to support. Some foreign companies in Cuba’s tourism sector also have been adversely affected by the U.S. recently permitting lawsuits by U.S. nationals claiming expropriation of their Cuban properties.

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[1] Reuters, Tourism to Cuba Plunges After Trump’s Tightening of Travel Ban: Data, N.Y. Times (Aug. 21, 2019).

 

Congressmen Reiterate Call for Re-Designation of Cuba as “State Sponsor of Terrorism”

On July 10, 2019, two Republican Congressmen from Florida=–Mario Diaz-Balart and Francis Rooney– asked Secretary of State Pompeo to re-designate Cuba as a “state sponsor of terrorism.”[1]

Their letter said the following:

  • “We strongly commend you and President Trump and his administration for imposing tough sanctions on the brutal regime in Cuba, and for the unprecedented decision to allow lawsuits to proceed against traffickers in confiscated properties,” said Diaz-Balart. “With these key changes, there remains a major mistake of the previous administration to rectify: returning Cuba to the state sponsors of terrorism list. The Cuban regime smuggled weapons to North Korea, harbors fugitives including a convicted murderer on the FBI’s ‘Top Ten Most Wanted Terrorist’ list, and planted thousands of operatives in Venezuela. I look forward to working with the Trump administration to continue its commendable policy of applying pressure to oppressive, anti-American dictatorships. Classifying Cuba as a terrorist state is an important next step in that robust policy.”
  • “Four years ago, President Obama removed Cuba from the list of State Sponsors of Terrorism,” said  Rooney. “Despite this decision, Cuba has continued to support known terrorist organizations and corrupt dictators such as the regime of Nicolas Maduro in Venezuela and has continued to harbor known terrorists sought by American law enforcement.  Accordingly, I support the Administration’s firm stance toward our communist island neighbor and urge Secretary Pompeo and President Trump to redesignate Cuba as a State Sponsor of Terrorism.”
  • “The State Department defines State Sponsors of Terrorism as ‘Countries determined by the Secretary of State to have repeatedly provided support for acts of international terrorism are designated pursuant to three laws: section 6(j) of the Export Administration Act, section 40 of the Arms Export Control Act, and section 620A of the Foreign Assistance Act.’”
  • “Taken together, the four main categories of sanctions resulting from designation under these authorities include restrictions on U.S. foreign assistance; a ban on defense exports and sales; certain controls over exports of dual use items; and miscellaneous financial and other restrictions,” the State Department adds. “Designation under the above-referenced authorities also implicates other sanctions laws that penalize persons and countries engaging in certain trade with state sponsors.”

Congressman Rooney separately stated, “Four years ago, president Obama removed Cuba from the list of State Sponsors of Terrorism. Despite this decision, Cuba has continued to support known terrorist organizations and corrupt dictators such as the regime of Nicolas Maduro in Venezuela, and has continued to harbor known terrorists sought by American law enforcement.  Accordingly, I support the Administration’s firm stance toward our communist island neighbor and urge Secretary Pompeo and President Trump to redesignate Cuba as a State Sponsor of Terrorism.”

Congressman Diaz-Balart added, “I commend President Trump and his administration for imposing tough sanctions on the brutal regime in Cuba, and for the unprecedented decision to allow lawsuits to proceed against traffickers in confiscated properties. With these key changes, there remains a major mistake of the previous administration to rectify: returning Cuba to the state sponsors of terrorism list. The Cuban regime smuggled weapons to North Korea, harbors fugitives including a convicted murderer on the FBI’s “Top Ten Most Wanted Terrorist” list, and planted thousands of operatives in Venezuela. I look forward to working with the Trump administration to continue its commendable policy of applying pressure to oppressive, anti-American dictatorships. Classifying Cuba as a terrorist state is an important next step in that robust policy.”

Congressman Rooney serves as the Ranking Member on the Subcommittee on the Western Hemisphere on the House Foreign Affairs Committee.

This proposed re-designation is a bad idea and should not be adopted.[2]

As of August 21, that re-designation has not happened. Nor have there been any further comments on the subject from these two Congressmen or from Secretary Pompeo or the State Department.

==================================

[1] Derby, Return Cuba to ‘State Sponsors of Terrorism’ List, Urge Florida Congressmen, Sunshine State News (Julyu 11, 2019); Press Release, Diaz-Balart, Rooney Urge Secretary Pompeo to Reclassify Cuba as State Sponsor of Terrorism (July 10, 2019); Press Release, Reps. Rooney and Diaz-Balart Urge Secretary Pompeo to Re-classify Cuba as State Sponsor of Terrorism (July 10, 2019).

[2] See the posts through 06/20/15 listed in the “Cuba: State Sponsor of Terrorism?’ section of List of Posts to dwkcommentaries: Topical: CUBA;  See also these posts: U.S. and Cuba Discuss Counterterrorism Cooperation (June 10, 2016); No Mention of Cuba in U.S. State Department’s Latest Report on Terrorism (July 20, 2017); U.S. Considering Re-Designating Cuba as “State Sponsor of Terrorism,” (Jan. 26, 2019).

Declining U.S. Rankings in Important International Socio-Political Indices

There are many international rankings of socio-political characteristics of the countries of the world. Here are at least six in which the U.S. ranking is declining.[1]

Freedom of the Press Index. The U.S. ranking has declined from 41 in 2016 to 48 in 2019in this index by Reporters Without Borders. Despite the importance of freedom of press in the First Amendment to the U.S. Constitution, the U.S. this year is behind all of Europe, Australia, Canada and New Zealand as well as far below Papua New Guinea and right below Romania.

This Index is “determined by pooling the responses of experts to a questionnaire devised by RSF [Reporters Sans Borders]. This qualitative analysis is combined with quantitative data on abuses and acts of violence against journalists during the period evaluated. The criteria evaluated in the questionnaire are pluralism, media independence, media environment and self-censorship, legislative framework, transparency, and the quality of the infrastructure that supports the production of news and information.”

Human Development Index. This index from the U.N. measures life expectancy, education and per capita income. For the most recent year (2018), the U.S. is 13th behind most of our European friends, Australia and Canada.

Level of Corruption Index. Compiled by Transparency International, this Index for 2018 (the most recent year) has the U.S. as 22nd in 2018 with a score of 71/100 versus 18th in 2016. The U.S. is far below Denmark, Sweden, Australia and Canada as well as below Estonia and just a little less corrupt than the United Arab Emirates and Uruguay.

The U.S. along with Brazil and the Czech Republic was listed as a “country to watch” in 2019. According to Transparency International, “With a score of 71, the United States lost four points since last year, dropping out of the top 20 countries on the CPI for the first time since 2011. The low score comes at a time when the US is experiencing threats to its system of checks and balances as well as an erosion of ethical norms at the highest levels of power.”

Income Inequality Index.  The Gini Coefficient measures perfect equality as 0 and perfect inequality as 1. In the mid-1970s the U.S. had a coefficient of 0.406 and in the mid-2000s as 0.486. Other reports of this Index by the CIA had the U.S. at 39th with a score of 0.450 (2017) while the World Bank said 59th with 0.410 (2013).

Global Peace Index. This Index is produced by the Institute for Economics and Peace (IEP) as the world’s leading measure of global peacefulness. This report presents the most comprehensive data-driven analysis to date on peace, its economic value, trends, and how to develop peaceful societies.” From a ranking of 124th in 2018, the U.S. has declined to 128th out of 163 in 2019.

Social Progress Index. This ranks countries by their average score for scores for three broad dimensions: Basic Human Needs, Foundations of Wellbeing, and Opportunity. For 2019 the U.S. had a score of 84.78 for a ranking of 25 out of 146 countries after declining since 2014. All of the G7 countries are ahead of the U.S. in health and education.

Conclusion

These indices are examples of contemporary efforts to reduce complex socio-political phenomena to digital numbers and thereby enable the construction of tables and rankings. Theoretically one could make a detailed analysis of the assumptions and sources of the data used to make these tables and rankings in order to make an informed conclusion about the validity of the indices. But the overall conclusion of these indices that the U.S. is not Number One would be shocking to many Americans.

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[1] Kennedy, The U.S. Is Falling, World View (Summer 2019) ;Reporters without Borders, World Press Freedom 2019; UN Development Programme, Human Development Indices and Indicators (2018) Transparency International, Corruption Perceptions Index 2018 ;World Bank, GINI Index (World Bank Estimate)–Country Rankings; CIA, Distribution of Family Income—GINI Index ;Institute for Economic and Peace, Peace Index 2019; Social Progress Imperative, Social Progress Index (2018); Kristof, Keynote Address, American Oxonian (Winter/Spring 2018).

 

Cuba’s Suffering from Continued U.S. Hostility  

After the Obama Administration had taken steps to improve U.S. relations with Cuba, the Trump Administration has gone in the opposite direction, as discussed in many earlier posts.[1]

U.S. Actions and Policies Against Cuba

These negative actions and policies include the following: continuation of U.S. embargo of Cuba; elimination of one of the “general licenses” for U.S. nationals to travel to Cuba; cancelation of right of U.S. cruise ships to make stops on the island; reducing amount of money U.S. nationals legally may remit to relatives and friends in Cuba; allowing litigation in U.S. federal courts over alleged trafficking in U.S.-owned property on the island under the Halms-Burton Act; additions to the U.S. “Cuba Restricted List” of entities and sub entities with which U.S. nationals may not transact business; U.S. negative reports on Cuban human rights, religious freedom and human trafficking; unilateral U.S. report about increasing Cuban Internet access; U.S. consideration of re-designating Cuba as a State Sponsor of Terrorism and of re-instituting U.S. parole for Cuban medical professionals; additional U.S. sanctions against Cuba for its alleged support of Venezuela.[2]

While there are recent bilateral bills in Congress to end the embargo and enhance U.S. nationals’ rights to travel to Cuba, they have not received, and are unlikely to receive, any consideration in the current Senate and perhaps the House of Representatives.[3]

Negative Impact on Cuba of U.S. Actions and Policies[4]

The negative impact, especially of the recent U.S. limiting the ability of Americans to travel to the island, has especially harmed Cuba’s emerging private sector. For example, a website and app used to make reservations, rate restaurants, and pay for meals at most restaurants throughout Cuba (AlaMesa) had to reduce its staff from 20 to 12 in response to a 30 to 40% decline in reservations.

But “Cuba’s economic woes go beyond U.S. policy. The island, with one of the world’s last communist governments, has been caught in a perfect storm. Its economy has been stagnant for years, averaging only about 1 percent annual growth. Its centrally-planned economy imports over two-thirds of its food. Its ally, Venezuela, has been in political and economic turmoil, causing an overall decline in oil shipments from the South American country. The island’s medical exchange program, a major source of revenue, also took a blow. Last November, Cuba recalled 8,517 medical professionals from Brazil in response to President Jair Bolsonaro’s tough stance against Cuba.”

The U.S. allowance of litigation over alleged trafficking in Cuba property owned by Americans is seen as discouraging foreign investment today.

Recently “there have been shortages in basic goods such as eggs, cooking oil and chicken.”

Cuban Government’s Response to Rough Economic Conditions[5]

At the July 13 closing  session of the National Assembly, President Diaz-Canel reported that a series of emergency measures announced that month aimed to stimulate domestic production and he hoped for slight growth this year. “Even in the eye of the hurricane of adversity that the enemy conceived to suffocate us, the Cuban economy can grow slightly, thanks to the fact that we have the potential to resist and continue advancing in our development.” He added that the economy grew 2.2% in 2018, compared with an earlier estimate of 1.2%, and that stronger base would make it harder to reach this year’s goal of 1.5% growth.

The President also said there will be price controls and policies aimed at stimulating local production to meet increased consumer demand without sparking inflation.

The next week of July 15, Cuba experienced power outages and fuel shortages that prompted citizen concern about the possible emergence of a “Special Period II” of harsh economic shortages. Cuba Energy Commissioner Raul Garcia sought to reassure citizens that the power outages were due to breakdowns in power plants, not oil shortages, and that those outages would be fixed by the end of the week.

These measures came at a time when falling Cuban imports have caused scattered shortages of food, hygiene and other products across the country. Diaz-Canel admitted the country was suffering from a liquidity crisis and bureaucracy and was short on fuel. He called on officials and the public to join together in the national emergency and each do their part to move the country forward. “Putting aside vanities and selfishness, practicing honesty, industriousness and decency, we will also be contributing to GDP,” he said.

On August 2, the Cuban government for the first time published details of its foreign exchange earnings from services such as telecommunications, hotels, health and education assistance, in an apparent concession to creditors. The biggest export earner in 2018 was health services at $6.4 billion, followed by “support services” at $1.3 billion while hotel and related services garnered $970 million, followed by telecommunications at $722 million and transportation and support services, which includes everything from airlines to docking fees, at around $600 million. Total exports were $18.6 billion in 2013 and $14.5 billion last year, down from $18.6 billion in 2013. Imports fell from $15.6 billion to $12.6 billion.

All of these developments have resulted in an increase in the country’s foreign debt from $11.9 billion in 2013 to $18.2 billion in 2016, an increase of almost 53% percent.

Cuba Introduces Price Controls[6]

In early July  President Miguel Diaz-Canel announced that the government had adopted a series of emergency measures to fight economic stagnation and dwindling foreign currency earnings that began in 2015 as the economy of key ally Venezuela imploded, and that have been aggravated by a series of new U.S. sanctions. The measures included increased wages and pensions for more than 2 million state employees, amounting to more than 8 billion pesos annually, or close to 13 percent of this year’s budget. The President also said there will be price controls and policies aimed at stimulating local production to meet increased consumer demand without sparking inflation.

The other shoe dropped on July 30, when the President announced a ban on all retail and wholesale price increases except for products imported and distributed by the state where already-set profit margins cannot be increased. In recent weeks, regional authorities have slapped price controls on taxi fares, beverages and haircuts, among other items. The price controls differ from province to province.

These price controls are especially difficult for the private sector.

For example, on August 15, retail prices in Havana were set for some basic foods such as beans, pork, lemons, bananas, onions and cabbage. The retail price of pork, a staple of the Cuban diet, was set at 45 pesos a pound, although market sellers said it previously went for some 65 pesos a pound. And farmers still charge 28 pesos a pound for pork. Another example is lemons, which used to sell for 30 pesos a pound,  now has a new maximum price of 10 to 15 pesos, which is the same price that farmers charge for the lemons.

On August 12, Cuba  Minister of Finance and Prices, Meisi Bolaños, stated, “We are going to be rigorous with those who try, by means of devices, to evade and violate the new measures approved to avoid the increase in prices. . . . We cannot allow that measures like these that the country approves to boost the  economy and generate greater capacity to buy in the population to be spoiled by a few unscrupulous that cause Cubans to lose confidence in state control.” The Minister also denied that the purpose of the measures is “to stop the development of non-state forms.”

Economists assert that such price controls are ineffective. Andrew Zimbalist, a Cuba expert at U.S.’s Smith College, said, “Such measures are usually okay for short periods of time, but if they stay in place they begin to create serious distortions in the economy.” A similar opinion was expressed by Pavel Vidal, a former Cuban central bank economist who teaches at Colombia’s Universidad Javeriana Cali. He said, “The more they control prices in formal markets, the more inflation and instability there will be in informal markets and the less incentive the productive sector has.”

Experts also have criticized Cuba’s verbose regulations of the private sector that were introduced at the end of 2018. They concluded that these “regulations approved by the Council of Ministers were written in reverse: excessive documents (29) and processes that represent obstacles in the application process for licenses, cracking down on violations, excessive inspections, the definition of twenty-two oversight agencies for the private sector (with specific departments to deal with them), the new requirement of a bank account with two months’ worth of taxes as credit in this account, needing to pay payroll taxes from the very first employee, etc.”

Conclusion

 Obviously Cuba is in a very perilous situation that the U.S. has helped to create. All who support normalization of the two countries relations need to voice their opinions to their senators and representatives and to Trump Administration officials.

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[1] See List of Posts to dwkcommentaries—Topical: CUBA.

[2] E.g., Sabatinni, Trump Doubles Down on Failed Cuba Policy, N.Y. Times (July 24, 2019); U.S. Updates Cuba Restricted List (July 26, 2019); U.S. State Dep’t, State Department Updates the Cuba Restricted List (July 26, 2019); U.S. State Dep’t, List of Restricted Entities and Subentities Associated With Cuba as of July 26, 2019 (July 26, 2019); New U.S. Government Hostility Towards Cuba’s Medical Mission Program, dwkcommentareis.com (Aug. 14, 2019); “U.S. (Trump) and Cuba, 2016-2017,”  “U.S. (Trump) and Cuba (2018),” “U.S. (Trump) and Cuba, 2019,” “U.S. Parole Program for Cuban Medical Professionals, 2019,” “Cuba, Venezuela and U.S., 2019,”  “Cuba Restricted List, 2019,”  “ Helms-Burton Act Title III Authorization, 2019” and U.S. Embargo of Cuba, 2019” sections  in List of Posts to dwkcommentaries—Topical: Cuba.

[3] See these posts to dwkcommentaries.com: New Bill To End U.S. Embargo of Cuba (Feb. 9, 2019); Senator Leahy’s Senate Floor Speech To End Embargo of Cuba (Feb. 18, 2019); Congressional Bipartisan Bills for Reversal of U.S. Policies Regarding Cuba (Aug. 13, 2019).

[4] Sesin, In Cuba, entrepreneurs see a steep decline with Trump policies, NBC News (July 6, 2019); Cuba Says Fuel Shortage, Blackouts Are Temporary, Being Fixed, Reuters (July 19, 2019); Frank, Cuba hopes for slight growth as Trump pummels Caribbean island, Reuters (July 13, 2019).

[5]  Kuritzkes, The End of Cuba’s Entrepreneurship Boom, Foreign Policy (July 15, 2019); The decline in tourism from the United States to Cuba already feels strongly on island, France23 (July 18, 2019);Taylor, Cubans Talk About Impact of Trump Administration Travel Policy Changes, Travel Pulse (July 22, 2019); Myers, A Visit To Cuba Reveals Economic Pain of Trump’s Travel Ban, Travel Weekly (July 29, 2019); Eaton, Cuba Trying to Attract Tourists and Investors Even as U.S. Clamps Down, Tampa Bay Times (July 30, 2019); Reuters, Cuba Reveals Health, Hotel, Other Service Earnings, N.Y. Times (Aug. 2, 2019); Whitefield, Cuba Feels the Pinch of the Trump administration’s travel restrictions, L.A. Times (Aug. 11, 2019); Torres, Cuba’s foreign debt is on the rise despite big profits from medical services abroad, Miami Herald (Aug. 12, 2019);Myers, Taking the pulse of demand for Cuba travel, Travel Weekly (Aug. 13, 2019); The Cuban economy is increasingly indebted, official figures reveal, Diario de Cuba (Aug. 15, 2019).

[6] The Government of Havana sets maximum prices for sale of products, Cubadebate (July 28, 2019); Frank, Cuba, battling economic crisis, imposes sweeping price controls, Reuters (July 30, 2019); Vela, Cuba’s Price Control Is Short-Term Fix To Production Problems, Economist Says, ABC10 News  (July 30, 2019); Fuentes Puebla & Romeo Matos, Price control, a necessary complement to the salary increase in the budgeted sector, Cubadebate (Aug. 1, 2019); The Cuban Government warns that it will be relentless in the face of ‘artifice’ to avoid its price cap, Diario de Cuba (Aug. 13, 2019); Reuters, Cuban Government Imposes Price Controls as It Seeks to Keep Lid on Inflation, N.Y. Times (Aug. 15, 2019); Fernandez, It’s a Long and Winding Road for Cuba’s Private Sector, Havana Times (Aug. 15, 2019).