An economy sustained by promises?

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Hello, friends. Today I want to share with you some reflections on the economic situation in Cuba, especially after the promises of a better 2023 by the leaders at the beginning of this year, something I never really believed. Well now, everything is going worse than expected, and those promises of a better 2023, that it would be a year of recovery have remained just that, a bunch of empty words.

In addition to not being a year of recovery and improvement for Cuba, everything has worsened. I don't know if anyone believed in the president's empty words promising a better year, but those who did were very disappointed. The Cuban economy is in a critical situation and it seems that the measures they plan to take will contribute to worsen it even more.

One of the most worrisome aspects is the increase in the fiscal deficit in the midst of a runaway inflation. The USD has reached record highs, and the increase in public spending has only aggravated the situation. Instead of seeing a recovery, we find a more fragile and vulnerable economy, which has not yet bottomed out.

This economic crisis has generated great social inequalities, something that was not so evident a year ago. Now, we observe how some Cubans can afford luxuries such as 50,000 and 60,000 usd cars, while others struggle daily in endless lines to bring some food home. These disparities reflect a deeper problem in Cuba's social structure.

In free market economies, it is common to speak of social classes, and Cuba is no exception. However, the difference is that in Cuba, the economic system does not allow the lower class the opportunity to improve and reach a position of solvency. Although small and medium-sized enterprises have been opened in recent years, the government is now trying to regulate them more strictly, which I consider a blunder.

The essence of a free market economy is to allow businesses to prosper and accumulate capital. By placing strict limits and controls, the government is stifling the development of these particular enterprises, preventing them from contributing to economic growth and generating employment and wealth.

The reality is that these enterprises are the backbone of a healthy economy. By curbing their development, the government runs the risk that many of them will close their doors, ceasing production and causing even greater damage to the Cuban economy. Each time they make the same mistakes over and over again.

In my opinion, the approach should be different. Instead of imposing restrictions, the government should facilitate and support the growth of these companies. In doing so, they would contribute significantly to economic recovery and the general welfare of the population.

I hope these reflections serve as a wake-up call to reconsider the decisions made and seek solutions that will truly boost economic development in Cuba. I would like to think so. Since every decision taken by the top leadership does nothing but affect the ordinary Cuban. I personally believe that the hope for a better 2024 is becoming more and more distant.