Wild Capitalism

Taxis in front of the Hotel Cohiba. Internet Photograph.

For those who doubt that things here will get worse, I inform you that the first to set up the Chinese Model have been some of those in the emerging private sector.  Since they are  obligated to pay high taxes for their operating licenses, in addition to salaries and benefits for their employees, they tighten things up by putting pressure on the people at the bottom.  Employees without a fixed salary are only paid a fraction of total revenues.  In that way, new businesses never lose.  Whoever doesn’t like it is free to leave because there will always be someone else desperate to take his place.

To my amazement, when I thought this post was complete, I found out that something very similar exists in the state sector.  The drivers of the new taxis that roll through the city, which are identifiable by their white and yellow colors, must pay a daily fixed tax — on top of the costs they pay for gasoline and maintenance.  If the driver fails to pay this tax two times, the taxi is handed over to another driver whose name is on a long waiting list.

Unwritten laws of a new labor scenario and an absence of labor unions to protect the interests of the least favored reminds me that a long time ago a revolution took place so that things like this would not happen.

Translated by: Hank

December 16 2011

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