In order to combat the unemployment crisis in Cuba after the Soviet
collapse, Castro legalized self-employment, which introduced a whole new
system of economic freedom to Cubans. This was financially beneficial to both the
government and the people engaged in these 140 new occupations, though the
legitimacy of the socialist regime was perpetually in question regarding this
decision.
xix These positions brought a system of private economic activity to the
Cuban economy; now, Cubans began to earn for themselves rather than for the
Revolution. In his 2000 article, Charles Trumbull depicts the life of various
entrepreneurs in Cuba during the Special Period. About David, a bicycle taxi
rider, Trumbull writes:
David bought his first bicycle taxi shortly after arriving, spending all of
his savings…he works six days a week to support his wife and
child…David makes up to $150 a month after taxes, which is about ten
times what he could make working for the state…his entrepreneurial ethic
is clear, as he works up to 80 hours a week xx
David’s story gives a clear and convincing example of the type of capitalistic
activity that pervaded Cuban society during the Special Period. Although
David could have worked for the state and made the wage deemed appropria te
by the leaders of the Revolution, he opted to work harder for his own benefit.
This is one of the main reasons that people preferred self-employment over
government jobs; the government wage oscillated between $7-15 a month.
xxi In his
decision to ride a taxi, David bypassed the socialist system’s limitations,
established an entrepreneurial lifestyle, and contributed shades of free market
enterprise to a socialist system. It was this spirit that synthesized a mixed
economy for Cubans.
At the top of the list of self-employed occupations was the lucrative
house renter, or owner of a casa particular. Often, these people operate
illegitimately, outside of the law, to accrue more personal funding. Trumbull
speaks to this point in his work, stating that, “…no one in Cuba reports what he or
she actually makes…and many apartment renters do not even register with the
government and lease rooms clandestinely.”xxii
After seeing the success of self-employment in Cuba, Castro decided to impose
heavy taxes on self-employed Cubans in 1996. Instead of sacrificing their hard
earned money for the Revolution, the people deregistered from self-employed
status. Mesa-Lago writes that, “[in 1996]…the number of [self-employed]
registered decreased from 208,500 to 180,000, and further declined to 171,861 in
March of 1997.” xxiii This shows that many Cubans preferred breaking the law in
the interest of profit. The Cuban people’s pursuit of a dollar income regardless of
the legality of their activity demonstrated a veritable capitalist spirit within
the framework of a supposedly socialist society.