Why is a struggle underway in Cuba between social equality and the free market? Immediately following the collapse of the USSR a major financial sponsor of Cuba at the time, Cuba went into a deep recession that impoverished its people and reversed social achievements among the people. This resulted in the difficult economy in Cuba. Now, Cuba has to fend for itself. It has to survive and this is why Cuban government encourages the free market. On the other hand, it doesn't want to contradict itself. For many decades Cuba defended that socialism is vibrant and strong. But Cuba's belief in socialism cannot feed it hungry mouths. It cannot admit that socialism was wrong. The economy is socialist, meaning that the population as a whole owns most of the means of production and collectively benefits from national economic activity. The free market legalized self-employment, which was introduced as a new system of economic freedom to Cubans. This was financially beneficial to both the government and the people. Cubans could earn for themselves rather than for all. Private property is minimal, and private wealth is seen as a separation of the social contract by which all Cubans benefit equally from the resources of their island. Soon after the Revolution, most of the means of production were collectivized; agricultural plantations, industrial factories, and nickel mines were converted to "social property" of all Cubans collectively.
Why did Cuba permit free markets?
The free markets brought opportunity. During this time the economy was torn between capitalism and socialism. The free market brought expansion of tourism and self-employment. People could work for what he or she earns. Cubans showed that this was a chance to earn a wage better than what the government gave. Cubans had to swallow its pride and embrace capitalism. The problem of Cuba is that it has to survive economically. To survive, Cuba had to open its doors to tourism and foreign...
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