The Economics of Obama’s New Cuba Policy
January 19, 2011 § Leave a comment
Here are the simple economics of the Obama Administration’s new policy of easing sanctions towards Cuba:
Last year, the Castro regime announced it would fire 10-20% of the Cuban workforce (due to a severe liquidity crisis) and issue limited self-employment licenses (for the politically obedient) — thus creating a supply of labor.
On Friday, the Obama Administration responded by allowing more travel — thus creating a demand for goods and services — and more cash transfers — thus providing capital to totalitarian Cuba.