Cuba’s economy in free fall

The Miami Herald: It’s amazing that the Castro brothers have any free hands left, what with having used so many fingers to plug the gushing dike that is Cuba’s failed economy.

Their most recent stopper came Sunday, when Raul Castro announced another contradictory economic salvation: allowing more private enterprise. There are an estimated one million excess workers in Cuba, and the government needs them off its bloated redundant workforce.

Cubans have long made ends meet with what they euphemistically call “by the left” — illegal capitalism.

The Cuban government is getting in on the game by relaxing prohibitions on business licenses. This will allow the Castros to squeeze workers again by charging income and sales taxes on previously under-the-table transactions that working Cubans rely on.

This may be a welcome change for the self-employed who long for extra cash without dodging the state police. But it’s not enough to save a woefully mismanaged central economy that does not have enough currency for food.

Fidel Castro’s recent appearances don’t instill confidence. By popping up everywhere from TV shows to the aquarium, he is letting his little brother know that brash moves do not go unnoticed, and eager anticipation of meaningful change is premature.

Copyright 2010 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.