- In Cuba, there is a struggle between social equality and a free market system. Currently over 3/4 of the population is employed by the government in Cuba while less than 1/4 is employed in the private sector. - There are two groups in Cuba, one that supports capitalism and free markets, and one that supports socialism. The group supporting capitalism and free markets may eventually win out. - In the US, the biggest current market failure is global warming caused by harmful chemical emissions into the air from industries. Increased "green taxes" by the government could incentivize cleaner production techniques.

1. Discussion Postings
Discussion PostingsThe Struggle between Social Equality and Free Market in CubaIn Cuba, a
struggle is underway between social equality and free market. Over three quarters of the
population are employed by the government while only less than a quarter by the private
sector. In the previous decades, the government used to provide free education and health
care besides subsidized rents for tenants. Consequently, the prices of essential basic
commodities were subsidized. However, today, this is no more and even the prizes of basic
food stuffs have escalated. In fact, the purchasing power of the population has significantly
reduced. The Cuban government can no longer provide essential goods at subsidized prices
and certainly, the subsidies may be completely phased out in the near future. In addition,
the wage rates and pensions for the retirees have significantly reduced and therefore, a big
portion of the population has opted to engage in self employment so as to meet their basic
needs. Besides, social injustice is expanding at an alarming rate due to corruption and other
forms of social evils. The writer of the paper strongly believes that all these problems can be
directly linked to an inefficient private sector in Cuba. As highlighted above, the private
sector employs only a small percentage of the population while the rest is left to the
government. The reverse to this could possibly save Cuba such that the government is left to
undertake important issues of national importance while the private sector creates jobs for
the domestic population (Prieto, 2011). In addition there could be arguments for market
controls in order to ensure social equality and that the prices do not go beyond what the
common citizen can afford.Today, there are various groups in Cuba who have different
opinions. One of such groups is the Participative and Democratic Socialism group that
advocates for socialism in Cuba. This group was established with the core aim of bringing
about social equality among all groups of individuals across Cuba.A very big portion of
Cuban population prefers capitalism and a free market economy. Such an economy will
create economic freedom for the Cuban people. Most of the aspiring people to become
future leaders in Cuba also advocate for capitalism. The supporters of capitalism and free
market economy think the majority will benefit from economic freedom hence more
production of goods in the country. The writer of the essay feels the supporters of
capitalism will win. In his view, the vast majority is for this system and with more and more
engagement of the private sector in the economy will create more jobs hence improved
standards of living for the domestic population (Pagano, 2012).The Benefits of Free Trade
in the USSince two decades ago, the US has established several free trade agreements with
many countries across the world thereby fostering international trade, foreign relations

2. hence giving birth to a very strong economy. However, the North American Free Trade
Agreement that was put in place in the year 1993 has been questioned by many who
strongly believe the trade agreement brought about a loss of jobs in the United States of
America. From an economist’ s point of view, this may be true. In fact, if countries rely on
imports, and more particularly, finished goods, it implies less production in the country and
therefore fewer investments hence high unemployment rates. However, this is not the case
in the United States of America. This is because; the US imports intermediate goods in the
form of inputs so as to produce other goods. In this regard, more jobs are created in the
country. Indeed, the NAFTA has actually increased jobs in the United States of America
(Handal, 2011).The Biggest Current Market Failure in the US EconomyMarket failure, refers
to a situation where the private enterprises fail to produce goods and services more
efficiently and therefore the government has to intervene so as to correct such failures. In
addition, the government may also fail by use of inappropriate tools to correct market
failure.From an economist’ s point of view, externalities are the effects felt by a certain
group in the economy due an economic activity within the economy and could be positive or
negative. A perfect example of a positive externality is when a consumer gets more of a
commodity at a cheaper price. In line with this, the producer may scoop high profit levels by
selling fewer units at a higher price or using the minimum possible cost in producing such
commodities.The US industries emit very high levels of harmful chemicals into the air. This
causes environmental pollution that basically affects the domestic population as well as
people in other countries. In fact, this has been on the rise due to unscrupulous private
investors who undermine the importance of environmental sustainability. These private
investors are not ready to use clean production techniques as this would result in greater
costs. Such emissions have led to formation of acid rain, ozone depletion and damage of
natural ecosystems all over the world. Despite the provision of commodities to the domestic
population, such investors have failed to use clean techniques of production that would
ultimately reduce pollution: a negative externality (Hetrick, 2008).On the other hand, the
market failure has been greatly exacerbated by the US government, which has taken the
wrong approach in dealing with such market failures. The writer of the paper strongly
believes that if the Federal government were to increase green tax, most investors would
prefer clean production techniques in an effort to evade tax. This would consequently
eliminate the market failure.The Ethics of using Unconscious Nudges to Alter People’ s
BehaviorNudges are means of affecting people’ s choice without making alternatives more
costly and are quite crucial because they avoid erroneous personal decisions. In fact, policy
makers make use of individual’ s flaws to help them make better decisions. Nudges can
influence people’ s choices as well as their behavior. According to Richard Thaler and Cass
Sunstein, people have the tendency to adhere to any default option presented to them. This
has been applicable in retirement saving program where behavioral economists advocate
for automatic deductions on people’ s salaries so as to enable them save for their
retirement. From the writer’ s point of view, nudges could be avoided. In the illustration by
Thalers and Sunstein pertaining application of nudges to allow people save for their
retirement, if the savers feel oppressed, they would use other means to evade this. For
instance, workers may forego the rewards of their services of labour hence avoiding the

3. default option as purported by the two economists.From Thaler’ s and Cass’ s retirement
saving’ s example, virtually all policies contain some unconscious nudges and incentives. In
most countries, there are several things citizens are required to do. However, the writer of
the paper strongly believes that this may not be accomplished by use of only nudges.
Certainly, there are other things that policy makers have to consider. Consequently, the
policy makers have to use a lot of effort and incentives to initiate behavioral change across
the entire population. Lastly, in an effort to make people change, it is crucial to ensure the
policies put forward are essential to people’ s lives so that they change. The writer of the
paper strongly feels that policies closely related to provision of incentives to the population
would possibly initiate some change (Sunstein, 2008).In conclusion, it would be right to
note that there is a struggle between social equality and free market in Cuba. Besides, there
are two separate groups such that one of the groups supports capitalism while the other
backs socialism. The ones supporting free markets and capitalism may eventually win since
such a system has been fruitful in other countries including the US. In addition, the biggest
current market failure in the US economy is global warming as a result of harmful chemical
emissions into the air. Lastly, in a section of the book, Nudging People Towards Better
Decisions, Richard and Cass Sunstein strongly support that nudges can influence
individual’ s decisions in the economy.ReferencesHandal, C. (2011, 3 16). Benefits of Free
Market in the US. Retrieved from heritage.org:
http:www.heritage.org/about/departments/ylp.cfmHetrick, S. (2008). The Greatest Market
Failure theWorld has seen. Regeneration Journal, 1-4.Pagano, M. (2012). The Second
Revolution. Independent Journal, 1-7.Prieto, D. (2011). Making Revolaution in Cuba. Havard
Times, 1-6.Sunstein, R. T. (2008). Improving Decisions about Health, Wealth and Happiness.
New York: Yale Press.