Tuesday, January 27, 2009

Subsidies versus Welfare to Help the Poor?



I was inspired to think about the issue of subsidies at the end of the year by Cuban blogger celebrity Yoani Sanchez. I was further compelled when I read an attack on subsidies by World Bank economist Marcel Giugale over at Boz's site (where my Latin musings have tended to find expression this last year in blog exile).

Subsidies are an interesting angle because liberals get confused. I had thought our fair Yoani was too smart to allow her true free market colors to show. With her post however, we can now confirm that Yoani opposes the very idea of richer sectors of society helping out the poorer. She opposes the production of nickel subsidizing health care and schools. She is against well-off hotels helping out those that are struggling. Now one can understand why she wants to get rid of the Cuban Revolution and go back to the days when companies were “free” to extract resources and exploit cheap labor without contributing to Cuban society.

Giugale, the World Bank official, tries in the Miami Herald to dress up his discredited market fundamentalism in 2009 faux-populist rhetoric for political purposes. Trouble is, one does not have to look very hard to see that Latin America has explicitly rejected the capitalist's dream that the market ought to determine who has access to water, education, electricity, etc (think water riots). In fact some Constitution's got rewritten to make the point quite clear (Bolivia's got approved the other day).

Of course, some subsides are stupid and ought to be re-worked (like Venezuela's enormous fuel subsidy), but most are for the good of society and provide a level of fairness and solidarity in a cruel world that seeks to divide us into categories of the deserving and undeserving. A means based test to receive a lump-sum handout is prone to cheating, encourages non-work and is manifestly unfair to the person just on the other side of the income line. We ought to be building socieities that encourage unity rather than sow divisions and jealousies. The test ought to be whether the good or service is a basic right. Charging "market prices" for things like water and education are idea's that were killed in the 90s and ought to never return.

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9 Comments:

Blogger jsb said...

"go back to the days when companies were “free” to extract resources and exploit cheap labor without contributing to Cuban society"

Nope. She does not want to go back to that. It's not a zero sum game, my friend.

8:01 AM  
Blogger leftside said...

Nope. She does not want to go back to that.

Actually she does, if you take seriously read her anti-subsidy post. She doesn't believe in the idea of wealthier entities helping less fortunate one's that may not be able to pay for themselves on their own (ie. subsidies).

6:04 PM  
Blogger jsb said...

No serious reading would interpret her as wanting to go back to exploitation. She wants a fair day's wage for a fair day's work, not the pennies that workers are paid now.

By the way, another Fidelista policy you supported goes the way of the dustbin.

http://www.reuters.com/article/globalNews/idUSTRE5113IY20090202

Are there any other reforms that you can take a brave stand and tell us you support or do you continue to support the status quo?

You still support the ban on MTV, don't you? Thankfully, Raul sees things differently than you. Soon you'll be able to see Western tv. You just wait. No thanks to Fidel apologists like yourself.

7:56 AM  
Blogger leftside said...

I support loads of reforms in Cuba, including all of those that have taken place. There are more along those lines. But NONE that will give the country away to those with money from Miami.

I have always said satellite TV is an issue where Cuba is under attacks - radio and TV bombardment costing us as much as Cuba's entire radio budget. Would the US allow Iran or Cuba to supply anti-US free tv and radio propaganda all day and night? What gives us the right. End the propaganda and then I will call on Cuba to end the satellite restrictions.

11:51 PM  
Blogger jsb said...

"Would the US allow Iran or Cuba to supply anti-US free tv and radio propaganda all day and night?"

Yes, the U.S. does. It's on the internet 24 hours a day available for everybody (even in our public libraries). I've watched hours and hours of both Iranian and Cuban television. Pretty bad propaganda, actually. Why do you feel like you know better for the Cuban people what they should choose to watch? You know what that's called? Facism.

7:30 AM  
Blogger jsb said...

Another example of apartheid:

http://www.babalublog.com/archives/011378.html

But then you support this don't you?

7:32 AM  
Blogger jsb said...

Cuban tv LIVE:

http://wwitv.com/television/54.htm

Iranian tv LIVE:

http://wwitv.com/television/100.htm

Wouldn't it be nice if Cuba and Iran reciprocated and allowed all of these signals to be viewed? But then you support their bans, don't you. Because you know better than Cubans do as to what's best for them to watch. Shame.

7:35 AM  
Blogger leftside said...

While I am against the tourist only internet cafes, there are plenty of places for Cubans to access the net - as Yoani's continues to demonstrate. But you can't compare it to apartheid. Having different rules for foreigners and locals is enshrined in laws in every country.

I've explained many times why Cuba is forced to ration it internet usage. How the US blockade makes that so. I have said over and again that when the Venezuelan-Cuba fiber optic line gets up and running, there will be no reason for the rules. As it is, capacity has to be reserved for real work in the country (and earning some hard currency on the side). The net is terribly slow as it is.

10:18 PM  
Blogger jsb said...

"when the Venezuelan-Cuba fiber optic line gets up and running, there will be no reason for the rules."

Don't hold your breath.

5:53 AM  

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