Sunday, May 15, 2016

Cuban 'Authenticity'

For those who say they're going to forego the disaster tourism schtick now that Cuba is open - here's something to consider.

When a location is short of something, price signals leave that area and the profit motive encourages entrepreneurs to bring the missing good/service to reduce/eliminate that scarcity.

Cuba has a scarcity of prosperity. That's why things are so cheap. The more tourists flock to Cuba, the more prosperity they'll sell the Cubans, reducing that scarcity. Prices will then rise, making Cuba less attractive for tourism, in pace with the increasing prosperity of Cubans.

The best thing we could do for the Cubans is to flock down there and gawk at their 'authenticity'.
Suck it up and obey the price signals.

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