Sunday, September 26, 2010

Cuba to cut 500,000 gov't workers, reform salaries

Click here to read the story. Here is the first paragraph:

"Cuba announced Monday it will cast off at least half a million state workers by early next year and reduce restrictions on private enterprise to help them find new jobs — the most dramatic step yet in President Raul Castro's push to radically remake employment on the communist-run island."

This is about 10% of the labor force and currently, 95% of the labor force works for the government. I had a post about a month ago called Cuba Allows Some Market Reforms. It will be interesting to see how this all works out and how much freedom the government actually allows. Cuba is usually one of the examples I site when I talk about command economies on the first day of the semester.

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