January 06, 2014

Socialism in action, again

So, how many of you admire and want socialism?   Okay, I see about 40 percent of Americans say they do.

Well here's more socialism in action, this time in Cuba:

For decades, Cubans could only buy a car if they got a government permit to do so.  As you could easily have guessed, it took months or years to get such a permit.  As the AP drily noted, "that requirement that has greatly restricted vehicle ownership in the country."

But with the new year the government abolished the requirement for a permit, and Cubans flocked to the dealerships.  There they found--can you guess?--that the prices were three times those in a free market.

For example, a new Kia Rio hatchback that sells for $13,600 in the U.S. costs $42,000 in Cuba.


The huge markup is almost entirely taxes.

See, the Castro government couldn't care less whether you get a new car or not.  They have government limos, and that's the end of their interest.  Plus, if only the rich can afford a new car then the huge tax will fall entirely on them.  And we all know how well "Tax the Rich!!" resonates with voters.

So it's brilliant:  Cuba's dictator gets a few hundred million more in taxes and is adored by the common people for taxing the rich!  Win-win.

Well, except for the folks in the middle class who wanted a new car.  But hey, that's socialism.  Can't make an omelet without breaking eggs and all that.

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