Why Cuban cab drivers earn more than doctors

Summary

This video script delves into the peculiarities of Cuba's socialist economy, where professionals like doctors and engineers earn less than taxi drivers due to state-set wages. Post-1959 revolution, the government nationalized businesses, dictating prices and salaries, leading to a stagnant private sector. Scenes from Havana highlight the inefficiency of state-run eateries with empty shelves and overstaffing. The 1990s saw a slow shift with private licenses, allowing some businesses to thrive. However, the system has led to a brain drain, with skilled workers opting for lower-skilled private sector jobs for higher pay. The average Cuban monthly salary is a meager $20, prompting many to seek additional income through an informal market just to survive. Despite recent economic reforms under Raul Castro, increasing private sector participation, many remain skeptical about significant change.

Takeaways

• 🚑 A taxi driver in Cuba can earn more in a day than a doctor earns in a month, highlighting the economic disparities.
• 🏭 Many professionals, including engineers, earn less than those in the service industry due to state-set wages.
• 🌟 The Cuban economy has been heavily influenced by the socialist revolution, leading to state control over businesses and wages.
• 🏠 Post-revolution, the state seized all private businesses and land, and set prices for all goods and services.
• 🍽️ State-owned restaurants and eateries often have empty shelves and are overstaffed, waiting for government food deliveries.
• 📉 The Cuban economy has been in decline since the collapse of the Soviet Union, which previously provided subsidies.
• 📉 Rationing is still in place, with Cubans using government ration cards to obtain basic necessities.
• 🔝 The Cuban government has started issuing private licenses since the 1990s, allowing for a small but growing private sector.
• 🚖 Private sector workers, like taxi drivers, can earn more because their salaries are not state-regulated and can charge higher prices to tourists.
• 🏥 Many highly trained professionals have left their fields for lower-skilled jobs in the private sector to earn a better living.
• 💼 The average Cuban monthly salary is $20, forcing people to find additional income through an informal market just to survive.

Q & A

What was the economic impact of the socialist revolution in Cuba in 1959?

The socialist revolution led by Fidel Castro resulted in the government seizing almost all private businesses and land, with the state setting prices for everything and deciding how much people got paid. This led to the disappearance of the private sector overnight.

How did the Cuban economy survive after the socialist revolution?

Cuba survived for many years with subsidies from the Soviet Union. However, after the Soviet Union's collapse, the economy has been getting worse every year.

What is the typical scene in a Cuban eatery according to the script?

A typical scene in a Cuban eatery includes too many employees in an empty establishment with empty shelves, waiting for food deliveries from the government, and putting in their eight hours to go home.

How does the government's payment system affect the motivation of workers in Cuba?

Workers in Cuba get paid the same whether they sell one plate of food or fifty, which implies a lack of incentive to work harder or more efficiently since their pay is not tied to performance.

What is the significance of government ration cards in Cuba?

Government ration cards are used by Cubans to receive their monthly rations from storage houses. They have been a part of the Cuban system for decades and are an indicator of the state's control over the distribution of goods.

What changes did the Cuban government make in the 1990s regarding private enterprise?

In the 1990s, the Cuban government started giving out private licenses, which fueled a small but growing private sector, allowing for some economic diversification.

How does the private restaurant experience differ from public ones in Havana?

Private restaurants in Havana offer a different experience with actual movement and good service, as the owners have to sell good food to stay in business, unlike public establishments.

Why do taxi drivers in Cuba earn more than doctors?

Taxi drivers in Cuba earn more than doctors because they have private licenses, and their salaries are not set by the state. They can charge tourists high prices, which allows them to earn significantly more.

What is the impact of the Cuban economic system on the professional choices of its citizens?

The economic system in Cuba has led to highly trained workers leaving their professions to do remedial work in the private sector, such as engineers cooking in private restaurants or accountants driving taxis, as these jobs offer higher earnings.

How do Cubans supplement their official salary to survive?

Cubans often engage in an informal market where they make additional income on top of their official salary, just to survive. This includes selling items like illegal popsicles or newspapers.

What recent changes have been made to the Cuban economy under Raul Castro's leadership?

Since Raul Castro took over in 2008, the number of private licenses has increased significantly every year, and now 20% of the economy is private, indicating a slow but steady move towards economic reform.