Even vicious, reprehensible, and disgusting tyrants sometimes make wise observations. Back in 2010, for instance, Cuba’s Murderer-in-Chief confessed that communism didn’t work.
More recently, the thug expressed unhappiness with the current crop of presidential candidates in America. Here’s some of what he wrote.
Cuban revolutionary icon Fidel Castro said Monday that a “robot” would be better in the White House than President Barack Obama — or any of the Republicans candidates in the 2012 election race. …Under the title “The Best President for the United States,” Cuba’s ex-president said that if faced with a choice between Obama, a Republican rival or a robot, “90 percent of voting Americans, especially Hispanics, blacks and the growing number of the impoverished middle class, would vote for the robot.”
I imagine someone clever could come up with a good joke about Mitt Romney being a robot and Castro making a subliminal endorsement, but I’ll simply make the serious point that elections in the United States all too often feature two candidates who only differ in that one will expand the burden of government at a faster rate than the other.
So even though Castro’s thinking and my thinking are as different as night and day, I’m also less than thrilled about the likely options this November.
Though I’m not sure why Castro has soured on Obama. Has anything changed since 2010, when he endorsed Obamacare?
P.S. Here’s a good Jay Leno joke about Cuban and American economic policy.
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I’m not serious , of course, but it is rather ironic that Raul Castro is cutting the tax burden on small business at the same time that Obama is pushing for higher tax rates on small business. Reuters reports on the latest in supply-side communism.
Cuba unveiled on Friday a new tax code it said was friendlier for small business, signaling authorities are serious about building a larger private sector within the state-dominated economy. The new system, outlined in the Communist Party daily Granma, greatly increases tax deductions… The tax redesign comes as the government has begun slashing 500,000 workers from state payrolls and preparing to issue 250,000 self-employment licenses to create new jobs in President Raul Castro’s biggest reform since taking office in 2008. …The new tax system enables the self-employed to deduct up to 40 percent from income for the cost of supplies, compared to just 10 percent under the old one. Formerly, small businesses simply paid a graduated income tax. Now they will also have to pay a 10 percent sales tax and 25 percent social security tax, but both are deductible at the end of the year.
Unfortunately, Obama seems to views tax issues through the prism of class warfare. This video explains why class warfare tax policy is misguided, and it includes the footage from the 2008 campaign where Obama basically said that he didn’t care whether his proposed tax increase on capital gains led to lower revenue.
The politics of hate-and-envy may be emotionally satisfying to some on the left, but there is strong evidence that high tax rates damage small business. And even though Obama apparently doesn’t think this means much, there is also lots of evidence that the so-called rich won’t wind up paying much additional tax because they can easily adjust their behavior. I guess the real question is why so many statists are consumed by disdain and resentment.
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Posted in Big Government, Bureaucracy, Bureaucrats, Cuba, Russia, tagged Big Government, Bureaucracy, Bureaucrats, Cuba, Russia on September 21, 2010 |
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Russia will cut its army of bureaucrats by more than 100,000 within the next three years, saving 43 billion rubles ($1.5 billion), Finance Minister Alexei Kudrin said on Monday. “We assume more than 100,000 federal state civil jobs will be cut within three years. The government has already included a schedule for cutting the number of federal civil servants in the draft budget for the next three years and coordinated it with ministries and agencies,” Kudrin told President Dmitry Medvedev, who in June ordered a 20 percent cut in the number of bureaucrats. Under the government plan, ministries and agencies will have to sack five percent of their staff in 2011 and 2012, and 10 percent in 2013. …In the last three years, the number of bureaucrats in the federal government had increased by nearly 20,000, in regional governments by 60,000 and at municipalities by 50,000, he said.
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Posted in Big Government, Bureaucracy, Bureaucrats, Cuba, Obama, tagged Bureaucracy, Bureaucrats, Castro, Cuba, Obama on September 13, 2010 |
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Since we’re talking about a totalitarian nation, I suppose I should make clear that Raul Castro is getting rid of 500,000 government jobs, not executing a half-million bureaucrats. This is a remarkable development, particularly since the entire workforce is only 5 million people. What’s ironic, though, is that Cuba is trying to reverse its mistakes while politicians in the United States keep adding more bureaucrats. In other words, Obama wants more people in the wagon and fewer people pulling the wagon. That’s not a good trend line. Here’s a CNN story about the Cuban reforms.
Cuba announced on Monday it would lay off “at least” half a million state workers over the next six months and simultaneously allow more jobs to be created in the private sector as the socialist economy struggles to get back on its feet. The plan announced in state media confirms that President Raul Castro is following through on his pledge to shed some one million state jobs, a full fifth of the official workforce — but in a shorter timeframe than initially anticipated. “Our state cannot and should not continue maintaining companies, productive entities and services with inflated payrolls and losses that damage our economy and result counterproductive, create bad habits and distort workers’ conduct,” the CTC, Cuba’s official labor union, said in newspapers. …The state currently controls more than 90 percent of the economy, running everything from ice cream parlors and gas stations to factories and scientific laboratories. Traditionally independent professions, such as carpenters, plumbers and shoe repairmen, are also employed by the state. …The announcement avoided the word “private,” but said alternative forms of employment to be allowed included renting or borrowing state-owned facilities, cooperatives and self employment and that “hundreds of thousands of workers” would find jobs outside of the state sector over the next few years. Castro has launched a few, small free-market reforms since taking over from his brother Fidel Castro in 2006. In April, for example, barbershops were handed over to employees, who pay rent and tax but charge what they want. Licenses have also been granted to private taxis. For a couple of years, fallow land in the countryside has been turned over to private farmers. The more they produce, the more they earn.
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It must be the time of year for confessions. Cuba’s former dictator recently confessed
that the Cuban model is a failure. That was a surprise, but now we have a remarkable admission from a Democrat member of Congress, who admits that “if you don’t tie our hands, we will keep stealing.” But since this looter voted for the faux stimulus, cap and trade, and Obamacare, it’s obvious that he is a proficient kleptomaniac. But if this Washington Examiner column
is correct, Congressman Periello may need to find a new career in a couple of months.
On March 16, when confronted by members of the Jefferson Area Tea Party, Rep. Tom Periello, D-Va., made a startling confession: “If there’s one thing I’ve learned up here (in Washington) and I didn’t really need to come up here to learn it, is the only way to get Congress to balance the budget is to give them no choice, and the only way to keep them out of the cookie jar is to give them no choice, which is why – whether it’s balanced budget acts or pay as you go legislation or any of that – is the only thing. If you don’t tie our hands, we will keep stealing” …Perriello unwittingly gives voters in the Fifth District the most compelling reason to throw him – and the rest of his fellow Democrats, who have been in charge of Congress since 2006 – out of office in November. … Perriello – who rode into office on President Obama’s triumphant coattails – is now one of the most endangered Democrats in the country. A SurveyUSA
poll has him running 26 points behind Republican state Sen. Rob Hurt, thanks to his liberal voting record – and his mouth. Perriello voted against the bank bailout (TARP), but he’s been House Speaker Nancy Pelosi’s loyal foot soldier ever since. He voted for the stimulus, for cap and trade, and for Obamacare, backing the House leadership 90 percent of the time. All that party loyalty is now backfiring on him big time.
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Posted in Cuba, Economics, Freedom, Government intervention, Government Spending, Swedem, Taxation, tagged Brad DeLong, Castro, Cuba, Denmark, Economic Freedom, Matthew Yglesias, Somalia, Sweden on September 12, 2010 |
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I touched a raw nerve with my post about Fidel Castro admitting that the Cuban model is a failure. Matthew Yglesias and Brad DeLong both attacked me. DeLong’s post was nothing more than a link to the Yglesias post with a snarky comment about “why can’t we have better think tanks?” Yglesias, to his credit, tried to explain his objections.
This leads Daniel Mitchell to post the following chart which he deems “a good illustration of the human cost of excessive government.”…this mostly illustrates the difficulty of having a rational conversation with Cato Institute employees about economic policy in the developed world. Cuba is poor, but it’s much richer than Somalia. Is Somalia’s poor performance an illustration of the human costs of inadequate taxation? Or maybe we can act like reasonable people and note that these illustrations of the cost of Communist dictatorship and anarchy have little bearing on the optimal location on the Korea-Sweden axis of mixed economies?
I’m actually not sure what argument Yglesias is making, but I think he assumed I was focusing only on fiscal policy when I commented about Cuba’s failure being “a good illustration of the human cost of excessive government.” At least I think this is what he means, because he then tries to use Somalia as an example of limited government, solely because the government there is so dysfunctional that it is unable to maintain a working tax system.
Regardless of what he’s really trying to say, my post was about the consequences of excessive government, not just the consequences of excessive government spending. I’m not a fan of high taxes and wasteful spending, to be sure, but fiscal policy is only one of many policies that influence economic performance. Indeed, according to both Economic Freedom of the World and Index of Economic Freedom, taxes and spending are only 20 percent of a nation’s grade. So nations such as Sweden and Denmark are ranked very high because the adverse impact of their fiscal policies is more than offset by their very laissez-faire policies in just about all other areas. Likewise, many nations in the developing world have modest fiscal burdens, but their overall scores are low because they get poor grades on variables such as monetary policy, regulation, trade, rule of law, and property rights.
So, yes, Cuba is an example of “the human cost of excessive government.” And so is Somalia.
Sweden and Denmark, meanwhile, are both good and bad examples. Optimists can cite them as great examples of the benefits of laissez-faire markets. Pessimists can cite them as unfortunate examples of bloated public sectors.
P.S. Castro has since tried to recant, claiming he was misquoted. He’s finding out, though, that it’s not easy putting toothpaste back in the tube.
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