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Maximum wage

Maximum wage

Last updated on: May 19, 2014 at 5:45 am by Gene Veith

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Maximum wage 2014-05-18T17:55:00-04:00 Gene Veith

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Journalist Michael J. Totten visits Havana to see how things are going in still-Communist Cuba:

In the United States, we have a minimum wage; Cuba has a maximum wage—$20 a month for almost every job in the country. (Professionals such as doctors and lawyers can make a whopping $10 extra a month.) Sure, Cubans get “free” health care and education, but as Cuban exile and Yale historian Carlos Eire says, “All slave owners need to keep their slaves healthy and ensure that they have the skills to perform their tasks.”

Even employees inside the quasi-capitalist bubble don’t get paid more. The government contracts with Spanish companies such as Meliá International to manage Havana’s hotels. Before accepting its contract, Meliá said that it wanted to pay workers a decent wage. The Cuban government said fine, so the company pays $8–$10 an hour. But Meliá doesn’t pay its employees directly. Instead, the firm gives the compensation to the government, which then pays the workers—but only after pocketing most of the money. I asked several Cubans in my hotel if that arrangement is really true. All confirmed that it is. The workers don’t get $8–$10 an hour; they get 67 cents a day—a child’s allowance.

The maximum wage is just the beginning. Not only are most Cubans not allowed to have money; they’re hardly allowed to have things. The police expend extraordinary manpower ensuring that everyone required to live miserably at the bottom actually does live miserably at the bottom. Dissident blogger and author Yoani Sánchez describes the harassment sarcastically in her book Havana Real: “Buses are stopped in the middle of the street and bags inspected to see if we are carrying some cheese, a lobster, or some dangerous shrimp hidden among our personal belongings.” Perhaps the saddest symptom of Cuba’s state-enforced poverty is the prostitution epidemic—a problem the government officially denies and even forbids foreign journalists based in Havana to mention. Some Cuban prostitutes are professionals, but many are average women—wives, girlfriends, sisters, mothers—who solicit johns once or twice a year for a little extra money to make ends meet.

The government defends its maximum wage by arguing that life’s necessities are either free or so deeply subsidized in Cuba that citizens don’t need very much money. (Che Guevara and his sophomoric hangers-on hoped to rid Cuba of money entirely, but couldn’t quite pull it off.) The free and subsidized goods and services, though, are as dismal as everything else on the island. Citizens who take public transportation to work—which includes almost everyone, since Cuba hardly has any cars—must wait in lines for up to two hours each way to get on a bus. And commuters must pay for their ride out of their $20 a month. At least commuter buses are cheap. By contrast, a one-way ticket to the other side of the island costs several months’ pay; a round-trip costs almost an annual salary.

As for the free health care, patients have to bring their own medicine, their own bedsheets, and even their own iodine to the hospital. Most of these items are available only on the illegal black market, moreover, and must be paid for in hard currency—and sometimes they’re not available at all. Cuba has sent so many doctors abroad—especially to Venezuela, in exchange for oil—that the island is now facing a personnel shortage. “I don’t want to say there are no doctors left,” says an American man who married a Cuban woman and has been back dozens of times, “but the island is now almost empty. I saw a banner once, hanging from somebody’s balcony, that said, DO I NEED TO GO TO VENEZUELA FOR MY HEADACHE?”

Housing is free, too, but so what? Americans can get houses in abandoned parts of Detroit for only $500—which makes them practically free—but no one wants to live in a crumbling house in a gone-to-the-weeds neighborhood. I saw adequate housing in the Cuban countryside, but almost everyone in Havana lives in a Detroit-style wreck, with caved-in roofs, peeling paint, and doors hanging on their hinges at odd angles.

Education is free, and the country is effectively 100 percent literate, thanks to Castro’s campaign to teach rural people to read shortly after he took power. But the regime has yet to make a persuasive argument that a totalitarian police state was required to get the literacy rate from 80 percent to 100 percent. After all, almost every other country in the Western Hemisphere managed the same feat at the same time, without the brutal repression.

via The Last Communist City by Michael J. Totten, City Journal Spring 2014.

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