The Cuban labor department said that more than 1 million people will lose their jobs but will be encouraged to work in the private sector wherein some of the restrictions will be lifted or become self employed. The article states that this will be a good thing because either way the state employees were hardly paid much and they would earn more by working in private firms.
All this said, how many jobs can the private sector create? Will it be able to absorb the 1 million or even if people become self employed and open new businesses, in todays competitive world are they going to be profitable businesses? Will they last?
Does this show a shift towards a market system?
2 comments:
Cuba seems to be taking the same path that Germany took to remove socialism by privatizing its companies. How can the Cuban government be sure that the 1 million unemployed people will find employment with the private firms when the main motive of private firms is to save costs by laying off people? It can be that Cuba may take a number of years to get out of this mess it has created but it is a good step towards getting out of Communism. Cuba should study the outcomes that Germany had to face when it began the process of capitalism and learn from its flaws so that Cuba is not destroyed completely.
They are definately leaning away from communism and towards a market system. It may take them many years for one million people to find jobs, but it is hard to say how an economy can expand when restrictions are lifted off businesses and people are forced to earn their own salaries.
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