Saturday, 5 November 2011

Cuba Legalises Sale of Private Property

Many Cubans have always lived under the Communist system, one of the few countries in the world to still operate under the defunct economic system. Recently I discussed how the country is slowly opening up, giving its people individual liberty. Now private property has become legalised which can only be good thing for the Cuban people. For years property, along with many other goods, have become rationed. Housing for everyone, but the catch is you have to share with 3 other families, just like under Joe Stalins Russian utopia days. 

During my trip to the country one of the people we spoke with discussed how he still lived with his parents in law as they couldn't move out due to state oppression. The bitterness was clear, in the West we are lucky in comparison. For the past decade property rampers have said we have a shortage of property, of course its all nonsense. I moved out of my parents place since I was 18 and never once have I had an issue getting a place to stay. There's lots of properties to move into and anyone can get their own place. Prices rose in line with the expansion of the money supply, not due to so called "Shortages". Go on Rightmove, you get pages of properties available. 

When you buy a place its not like you have to go on a waiting list. Properties are stuck on the market for months, even years, where's the shortage there. Shortages are where something is not available at any price. The shelves are bare. The Cuban didn't have the option of getting his own place. Our housing situation is similar to saying there's a shortage of Ferraris because everyone hasn't got one. Of course there is no shortage, it's either because people can't afford one or choose not to buy one, just like our houses. The current price of houses? Well blame Government for that one. Printing money, as the BoE are doing despite inflation running at two times the targeted level, won't help affordability either.

The comments under the video amuse me. Westerns telling the Cubans how bad they will have it as they copy our systems. Yet I never see these Westerners move to these Communist utopia's. They enjoy the free market benefits, buy what you want, live how you wish and have the freedom to express themselves. Hypocrisy, but hey that's the "do-gooders" mentality. Its so simple to fix societies ills that all we need to do is just share everything out and allow central planning to work its magic. 

So long as the Cuban old guard are present they will always claim to be running a Communist regime. In all reality they look to the free market, just like all Governments, to fix the problems that they create.