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Now we know where the 8% communist surcharge on foreign currency is going to. You guys are right, Fidel rules (literally). Bush only talks about cutting taxes, but fidel more than doubles salaries with one speech. I am moving to Cuba.

Castro More Than Doubles Minimum Wage for Cubans

April 21, 2005 11:19 p.m.

HAVANA -- President Fidel Castro announced an increase in the island's minimum wage Thursday, more than doubling salaries of nearly 1.7 million Cuban workers.

Farmhands, plumbers and other low-wage workers currently making about $4.20 a month will make $9.40 starting May 1, he said.

"I think we are coming along well," said Mr. Castro, who has adopted a series of measures in the last few months that attempt to ease Cubans' economic woes.

Mr. Castro made the announcement in a televised address marking his eighth speech in the last 11 days. The other addresses have been devoted to international politics, particularly the presence in the United States of a Cuban militant wanted in Venezuela for a 1976 Cuban airliner bombing.

At the end of last month, Mr. Castro announced increased payments for citizens on welfare. Single mothers, senior citizens without relatives, widows and the disabled are among the hundreds of thousands of Cubans who will benefit from the increase, also to take effect May 1.

The average Cuban government worker earns 300 Cuban pesos a month, or the equivalent of about $12. Salary figures can be misleading in Cuba, however, where most citizens pay no rent, education and health care are free, and the government offers heavily subsidized basic services such as utilities and transportation.

Mr. Castro has taken to the stage for several Thursdays in a row to announce positive economic news, including the revaluation of the nation's two currencies and the distribution of thousands of new pressure cookers and rice steamers at subsidized prices.

The Cuban convertible peso was revaluated by 8% earlier this month, with the exchange rate no longer on par with the American dollar. The regular Cuban peso -- a second currency used on the island -- was also re-valued, by 7%.

Mr. Castro has hinted that the island will move toward a single currency, and stated clearly that all Cuban currencies will be independent of the U.S. dollar.

The Cuban leader's optimism on the state of the economy is based primarily on improved trade relations with Venezuela and China and the recent discovery of oil deposits off the island's coast.

The wage increase announced Thursday will cost the Cuban state nearly $44 million per year, Mr. Castro said.