Salvador Valdés Mesa, Cuba's Vice President, has acknowledged the harsh reality that current food prices make it untenable to survive on a salary of 6,000 pesos. During his visit to the Los Palacios Grain Agroindustrial Company in Pinar del Río, Valdés Mesa addressed the economic crisis severely impacting the population, particularly highlighting the inadequate purchasing power of wages and pensions amidst skyrocketing living costs. "Our retirees have average pensions of 1,525 pesos. You can't live on that; you can't live on an average salary of 5,000 pesos, or even 6,000 pesos, given today's prices," he admitted.
Despite expressing "concern," Valdés Mesa offered no solutions, nor did he acknowledge the government's role in the country's economic downturn. Since January 2021, the minimum wage in Cuba has hovered around 2,100 pesos, following the failed "Tarea Ordenamiento" policy implemented by Miguel Díaz-Canel. This monetary reform, introduced in a stagnant economy heavily reliant on imports for essentials, led to rampant inflation and unchecked price hikes, while wages saw only negligible increases.
Hundreds of thousands of workers earning in depreciated Cuban pesos are grappling with the unbearable costs of food and necessities, feeling the despair of growing poorer each day. Complaints flood social media from Cubans, many of whom are highly educated, whose meager earnings barely cover basic needs.
Last November, a doctor from Sancti Spíritus voiced her frustration over the inability to buy a can of powdered milk for her daughter, which costs the equivalent of two months of her salary on the black market while she's on maternity leave. "I, a Cuban doctor with a basic salary of 5,000 pesos, currently earning 3,400 pesos on maternity leave, need two months of work to buy my daughter a can of milk on the black market. A can that doesn't even last a month if she drinks two 8-ounce glasses daily," lamented Danielly Aróstica.
Months earlier, an engineer, a mother of two and an aspiring entrepreneur, shared a video demonstrating what can be purchased with a minimum wage. She showcased her market haul and the prices. "I’m showing what we can buy here in Cuba with just over a minimum wage. Obviously, I’m talking about food, because clothing or shoes are nearly impossible," she wrote.
The young woman displayed her purchases: 10 onions, five plantains, 20 garlic heads, and four pounds of green tomatoes, all totaling 2,930 Cuban pesos. "Does this seem expensive or cheap? In my opinion, it's extremely expensive," she noted.
Even state journalists have echoed the widespread discontent of a populace finding their salaries and pensions insufficient for basic needs like food, transportation, or hygiene. Jesús Álvarez López, a reporter with the Villaclara CMHW network for 40 years, decried the relentless rise in product prices in Cuba, especially those from agriculture. "What can a retiree with 1,528 pesos buy today, when even yuca, sweet potatoes, squash, and flour have lost their historical affordability?" he questioned.
Economist Pedro Monreal believes the government's economic "reordering" has brutally compressed workers' earnings, leading to widespread impoverishment. Monreal has criticized the Ministry of Economy and Planning for blaming the decline in purchasing power solely on external factors like the economic "blockade" and the COVID-19 pandemic. According to the expert, the relative decrease in wages and social security contributions is due to misguided decisions that remain unaddressed, resulting in a significant gap between income and rising consumer prices.
Understanding Cuba's Economic Challenges
Why is it difficult to live on a 6,000 pesos salary in Cuba?
The high cost of living, particularly the soaring prices of food and essentials, makes it challenging for Cubans to survive on a 6,000 pesos salary.
What is the "Tarea Ordenamiento" policy?
The "Tarea Ordenamiento" was a monetary reform introduced in Cuba to unify currencies and adjust salaries, but it has resulted in increased inflation and economic challenges.
How has the economic situation impacted Cuban professionals?
Many Cuban professionals, despite their education and skills, struggle to afford basic necessities due to low wages and high living costs.