New Reform Moving Cuba Towards Capitalism

Raul Castro is furthering policy reform to help Cuba's economy and its citizens. This article reports that he has authorized the release of unused government lands to be transferred to private farmers and cooperatives that may choose which crops they wish to grow and sell. The government hopes that reforms like this will help put more food on Cubans table. One interesting statistic stated in the article was: 35% of arable lands controlled by private cooperatives produce 60% of the islands agricultural output. Numbers like these demonstrate the efficiency and productivity of capitalism over communism.

With this new reform, we can expect to see the supply curve shift to the right, causing prices to decline.

1 comment:

Dr. Tufte said...

FWIW: those sorts of efficiency numbers were also reported in the Soviet Union when they started privitizing.