The inherent flaw of capitalism

[biffvernon]

Just for the sake of balance:

Cuba Sets a Global Example for the Achievements of Socialism

By Peter Phillips

In an all day conference, February 10, 2012, some 120 authors, professors, and journalists, from dozens of Caribbean, American and African countries, met with Fidel Castro. Those attending were invited participants for the Intellectual Encounters for Peace and the Preservation of the Environment event at the Havana Convention Center. Topics discussed in the nine-hour session were world peace, environmentalism, neo-liberal capitalism, and the continuing importance of socialism.

Fidel Castro (age 85) urged those assembled to a moral duty to prevent the extinction of humankind and challenge the expanding predations of neo-liberal global capitalism. He expressed concern for the inevitable collapse of Wall Street and the international monetary system. Paper money is worthless without backing from gold or other assets, Castro asserted. Environmental destruction is classless in that eventually all will suffer—both the rich and the poor—if neo-liberal capitalism continues on its rampart global destruction, he professed.

Castro’s main message was clear. Cuban socialism is an international example of a humanitarian economy in the world. “We have over 80,000 doctors,” he said, and “we are currently training 830 Pakistani medical students and many others from around the world.”

Fidel Castro, reverently referred to as “Commandante” by many of those present, was flanked by the Cuban Minister of Culture, Abel Prieto, and the president of the Cuban Book Institute, Zuleika Romay. The participants in the encounter were invited guests to the 2012 International Cuban Book Fair that ran from February 10 to 19 in Havana.

The nine-hour session went from 1:00 PM until after 10:00 PM, with only two short coffee breaks. Fidel gave extended responses during the event, commenting on the presentations, asking questions, and recalling the history of the Cuban revolution and Cuba’s humanitarian efforts over the past fifty plus years. Some 40 people presented briefings on their concerns. The lies and propaganda of the corporate/capitalist media were important themes for the day. One participant remarked how the global corporate media seeks to create a monoculture of the mind inside the capitalist countries.

As an invited author for the International Cuban Book Fair, I was honored to participate in the discussions held with the “Commandante.” His energy is inspiring and his command of history and contemporary issues is phenomenal. Castro had serious health issues a few years back, but remains mentally alert. He walked with assistance from his bodyguards, but remained fully participatory in the nine-hour session.

Cuba is an international example of the potentialities of socialism, and an ongoing symbolic challenge to marketplace capitalism. In the United States there is a continuing propaganda drumbeat against the Cuban revolution. Castro is often described as a military dictator repressing his people and blocking freedoms in Cuba. But this description ignores some undisputed social advances under his leadership that could serve as an example of what a society can do when it turns its resources to humanitarian purposes.

Contemporary neo-liberal capitalism undercuts wages, unions and social welfare, which results in the expansion of poverty, hunger, and extreme inequality. Cuba is a demonstration that humanitarian socialism can work for the masses. Cuba is the number one organic farming country in the world. Cuba has full employment, zero starvation, and some of the best health care in the world. Cuba’s life expectancy is equal to the United States and education up through university is paid for by the state for all students.

As a media-reform advocate, participant and observer, I watched tens of thousands of young people arrive at the International Book Fair in the old Spanish fort overlooking downtown Havana. These are multi-generations of people who have never suffered media advertisements. Three University of Havana literature majors, with whom I spent a full day, laughed hysterically when I asked them if they wanted a McDonald’s Happy Meal. They represent a people who accept the equality of socialism and collective growth of human betterment, and will strongly defend their way of life if necessary. As literature majors they have completed three years of Latin, and are starting classical Greek. They have had courses in historical and modern Latin American and European literature, and art. Their university education costs them nothing, and the government provides all textbooks and living expenses.

After the collapse of the USSR, Cuba lost most of it subsidies from the socialist block of nations. The early 1990s were a difficult transition. This was when Cuba opened it doors to those who wanted to leave. Some 30,000 people choose to move to the United States. Yet, ten million people choose to stay and build the independent socialist country that Cuba is today. Several other South American countries, notably Venezuela and Ecuador, have taken note of Cuba’s successes and are moving in a similar direction seeking socialist equality.

Some in the US believe that when the senior Cuban leadership from the 1959 revolution passes away, US corporations and displaced Cubans abroad will waltz back into Havana to return capitalism to the island. It is very clear to me, and many contemporary observers, that multiple generations of socialist Cubans will never allow this to happen.

_______________________________________________________________________
Peter Phillips is a Professor of Sociology at Sonoma State University and President of Media Freedom Foundation/Project Censored. He co-edited with Mickey Huff Censored 2011, which was published in Spanish for the International Book Fair in Cuba. Mickey Huff is the director of Project Censored and editor of the recently published Censored 2012, which was presented to Fidel Castro February 10, 2012.

[emordnilap]

Some in the US believe that when the senior Cuban leadership from the 1959 revolution passes away, US corporations and displaced Cubans abroad will waltz back into Havana to return capitalism to the island. It is very clear to me, and many contemporary observers, that multiple generations of socialist Cubans will never allow this to happen.

I sincerely hope so. Cuba has the 'least worst' form of government.

[sweat]

Why does this system produce such endemic corruption and fraud?
Why does the private sector get unbelievable amounts of taxpayers money that could be used for the creation of REAL jobs?
How was this company able to operate for so long?
Why is there so little accountability?

It's not just this system. Most systems are used by those at the top to further their own ends to some extent. Just look at the fiddles that went on in the last government with dodgy loans for house purchases by ministers among the least offensive. How many times was Mandelson chucked out only to be reinstated as quickly as possible.

All the communist regimes of the last century had feather bedded luxury for the people at the top no matter how poor the people at the bottom were. The regimes that still survive into this century are all the same. Just look at the podgy Kim Jong Un and his senior military figures and compare them to the average North Korean.

If you look at it from the point of view that we have one of the least corrupt systems in the world that might make you a little happier. If there is something going on our much denigrated press usually blows the whistle.

So the last government we had was a different system? Missed that one

[woodpecker]

[Ludwig]

If you look at it from the point of view that we have one of the least corrupt systems in the world that might make you a little happier.

>splutter<

If there is something going on our much denigrated press usually blows the whistle.

>splutter<

How can you be sure that the press "usually" blows the whistle, since if ever it didn't, we wouldn't know about it?

[nexus]

+1 to Ludwig

More good news.....

Emma Harrison quits as chairman of welfare-to-work firm A4e

PM's former 'family champion' steps down at her company after arrests of former employees and furore over her reward package

(guardian)

[UndercoverElephant]

Thanks for the welcome.

I beleive we have a global marketplace today. For that reason I think it would be a very low possibility that one company or country could dictate the price of any good or service. It is getting to the point that any company can produce anything anywhere and sell the product anywhere.
That in my view makes it almost impossible to have a monopoly. So there will always be pricing pressure. The global markets make pricing pressure more likely not less likely.

That's nice in theory, but it doesn't work in practice. Two perfect examples from the UK are the rail industry and the energy industry, both of which were the subject of idealism-driven privatisations in the 1980s. This has not delivered good value or efficient companies. Instead, money is being diverted from the companies to shareholders and the public is being systematically ripped off. In reality, introducing competition and shareholders into those environments produced no benefits for the end customers, but plenty for the shareholders. In both cases we would have been better off with the nationalised industries that existed beforehand.

Also, you aren't really talking about socialism. Socialism isn't really to do with minimising profits of private companies. It is about protecting the weaker members of society from the hard realities of the free market, and that includes a free market which is working as well as it possibly could.

I agree with you that free competition is better the monopolies, but I don't agree that it is better than nationalised industries. It all depends on the specific situation.

Two yeses. First I wasn't really talking about socialism. I just thought freemarket captalism was a way to reach equitable exchange of goods and services. I also thought equitable exchange of goods and services should be a goal of any economic system. Second, I agree with you that some things should be nationalised. Also the weakest link in any system is the human element. So whether it is socialism or capitalism there should be constant monitoring of all participants. So we need a good referee. That is why we need the government. Also, we need a good citizenry that is free to keep an eye on the government. That's the hard part.

Sounds reasonable to me. Welcome to the board, by the way...(I wait to see it isn't a spambot before treating it as fully human these days...)

[kenneal - lagger]

So the last government we had was a different system? Missed that one

... and the point of the post as well although that was probably deliberate.

[kenneal - lagger]

Re Biff's post on Cuba, it is a very difficult country to comment on as it has effectively been politically cleansed as opposed to ethnically cleansed. There is no political opposition, or very little, in Cuba because they have all left for, or been forced out to, the US. There is no repression because it's now not necessary.

Commenting on the origins of the extreme monetary poverty of nearly all Cubans is difficult because of the unknown effects of the US sanctions on the economy. Cubans, in the main are extremely poor by most accepted standards but most will profess to be happy with their lot. Those who work in the tourist industry are richer because of the tips they receive but are probably more discontented than other Cubans because of the wealth that they see in the tourists that they encounter. the vast majority of Cubans are kept separate from tourists so that any discontent is minimised.

The standard of catering in the country in the main tourist industry is abysmal. Despite having masses of fresh vegetable available, in even a top class tourist hotel you are quite likely to be served up nasty tinned mixed vegetables. The meat is often low quality and badly cooked. If, however, you go to a "casa particular". an unofficial restaurant run in the front room of a private house, you will get very good home cooked food and good service at a reasonable price.

It's the same old story of communist countries and nationalised industries where there is no incentive to do a good job because why bother, you don't get paid any more. Most houses in Havana are falling apart as they are owned by the government, who haven't any money to repair them, if they had the inclination, and the residents don't have any money to repair them either, nor the inclination as they wouldn't get their money back. In a few years time Havanna will start falling down around their ears. If you go there don't walk down side of a residential side street if its raining or windy because lumps of stucco or even masonry are quite likely to fall on your head. It's that bad.

The music is good though, and plentiful. There will be a band or musician in every good hotel and many bars and also at many of the tourist sites. Most of these bands will sell you a CD of their music for a very reasonable sum.

Cuba's problems will come in the future if the exiles ever try to repatriate and reclaim their property. No Communist or Socialist government will allow this as it would be politically destabilising to let the opposition back in. A break down in the economic system of the US might encourage this as the Cuban exiles, faced with a loss of wealth and general chaos, might find the prospect of home more favourable. Cuba would be less likely to suffer a break down and would, more than likely, still be able to repulse a second Bay of Pigs.

[nexus]

John Lanchester writes in today's guardian about how trickle down theory doesn't work, in real terms the rich get richer while the rest of us get poorer- it's a zero sum game:

Income levels for most social groups have stagnated in the last few decades, but the super-rich have continued to get sharply richer, and to own an ever increasing share of the economic cake. This reverses the trend of the preceding few decades – and by the way, the fact that the process has continued in that direction, even as the economy contracts and average household incomes decline, refutes the whole rationale for the laissez-faire attitude to high incomes. The argument for allowing the rich to grow richer is that it starts a process where everyone else grows richer, too – but this simply hasn't happened. In fact, they're growing richer while everyone else grows poorer. "Economic imbalances and social inequality" were the top global risks cited at the World Economic Forum this year; there were 70 billionaires in Davos, so it's a subject they know something about.

I love the fact that all the apologists for rampant, unchecked capitalism (some even on these very boards) say that the current problems are down to too much regulation and that we need even less regulation We can see how bad inequality is now imagine how much worse it would be, with even less constraints on financiers, bankers and the super rich.

[woodpecker]

Re Biff's post on Cuba, it is a very difficult country to comment on as it has effectively been politically cleansed as opposed to ethnically cleansed. There is no political opposition, or very little, in Cuba because they have all left for, or been forced out to, the US. There is no repression because it's now not necessary.

Commenting on the origins of the extreme monetary poverty of nearly all Cubans is difficult because of the unknown effects of the US sanctions on the economy. Cubans, in the main are extremely poor by most accepted standards but most will profess to be happy with their lot. Those who work in the tourist industry are richer because of the tips they receive but are probably more discontented than other Cubans because of the wealth that they see in the tourists that they encounter. the vast majority of Cubans are kept separate from tourists so that any discontent is minimised.

The standard of catering in the country in the main tourist industry is abysmal. Despite having masses of fresh vegetable available, in even a top class tourist hotel you are quite likely to be served up nasty tinned mixed vegetables. The meat is often low quality and badly cooked. If, however, you go to a "casa particular". an unofficial restaurant run in the front room of a private house, you will get very good home cooked food and good service at a reasonable price.

It's the same old story of communist countries and nationalised industries where there is no incentive to do a good job because why bother, you don't get paid any more. Most houses in Havana are falling apart as they are owned by the government, who haven't any money to repair them, if they had the inclination, and the residents don't have any money to repair them either, nor the inclination as they wouldn't get their money back. In a few years time Havanna will start falling down around their ears. If you go there don't walk down side of a residential side street if its raining or windy because lumps of stucco or even masonry are quite likely to fall on your head. It's that bad.

The music is good though, and plentiful. There will be a band or musician in every good hotel and many bars and also at many of the tourist sites. Most of these bands will sell you a CD of their music for a very reasonable sum.

Cuba's problems will come in the future if the exiles ever try to repatriate and reclaim their property. No Communist or Socialist government will allow this as it would be politically destabilising to let the opposition back in. A break down in the economic system of the US might encourage this as the Cuban exiles, faced with a loss of wealth and general chaos, might find the prospect of home more favourable. Cuba would be less likely to suffer a break down and would, more than likely, still be able to repulse a second Bay of Pigs.

Perhaps all the people commenting on Cuba, on the various threads, could say whether they have actually been to Cuba and in what circumstances (Havana, holiday resort, rural/up-country, three days, two months etc.) This may help us to decide how much weight to give to their opinions.

[biffvernon]

This may help us to decide how much weight to give to their opinions.

First hand experience has much to commend it but it's not everything. I tend not to travel very far - it's been several years since I went in a plane and I've never been outside Europe. I doubt I ever will.

There are many ways in which one can develop opinions about things we have never seen, nuclear war, Antarctica, Elvis Presley, shark-fin soup....

No, I've never been to Cuba and I don't see it through rose tinted specs. But there are useful things to learn from their experience.

[kenneal - lagger]

Perhaps all the people commenting on Cuba, on the various threads, could say whether they have actually been to Cuba and in what circumstances (Havana, holiday resort, rural/up-country, three days, two months etc.) This may help us to decide how much weight to give to their opinions.

I went on holiday to Cuba for a week in 2007. We spent 4 days in Havana and 3 days in Varaderro. One of the Havana days was spent in the National Arboretum with a one on one guide who was a professional biologist. We did a lot of walking off the beaten track around Havana including an organoponico and loads of bars, some good and one where we were stung with the threat of baseball bats if we didn't pay up! We met a lot of men who were out drinking with their sisters and were quite keen for us to be, shall we say, friendly!

We did a lot of window shopping in Havana but not much buying. All the shops sell a small range of whatever they can get to sell, some new and some second hand. While in Havana I lost my reading glasses and in Varaderro bought a new pair which were of good quality, much better than the ones I lost, and quite cheap and the optician had a good range from which to choose.

[woodpecker]

This may help us to decide how much weight to give to their opinions.

First hand experience has much to commend it but it's not everything. I tend not to travel very far - it's been several years since I went in a plane and I've never been outside Europe. I doubt I ever will.

There are many ways in which one can develop opinions about things we have never seen, nuclear war, Antarctica, Elvis Presley, shark-fin soup....

No, I've never been to Cuba and I don't see it through rose tinted specs. But there are useful things to learn from their experience.

Biff, I get your drift about being able to have opinions, but given that Cuba is so different to so many other places, it's difficult to understand what actually goes on there in people's lives without having been there. Mostly when people talk about Cuban experience they are referring to certain films, which in my view somewhat mis-represent the place. (Perhaps if you had been in East Germany/East Berlin before the wall came down or similar, that would begin to cover some of the issues on the ground.)

[biffvernon]

Yes, I too have seen Power of Community, but I don't for one moment think it represents a full comprehensive description of Cuba. On the other hand, I'm pretty sure I would find, say, Las Vegas, just as hard to understand.