Preparing for a ‘Cubanized’ Economy: Tips for Americans

Below is a summarized version of my transcript discussing Morgan Stanley’s prediction of the U.S. economy becoming “Cubanized.” You can listen to the full podcast below or watch it via YouTube.

Listen to this podcast.

Key Points

• Morgan Stanley suggests U.S. tariffs could lead to a “Cubanized” economy, particularly in the automotive sector.
• “Cubanizing” refers to the resourcefulness and ingenuity Cubans have developed due to economic limitations, especially in maintaining old cars.
• Tariffs could incentivize Americans to keep their cars longer, repairing them out of necessity, similar to the Cuban experience with classic vehicles.
• Individuals need to personally assess their financial situations and prepare for potential economic shifts.
• The concept of “Cubanizing” highlights the human capacity to adapt and find creative solutions in challenging economic times.

Good morning. Today, I want to talk about something that immediately caught my attention when I saw the title—I knew exactly what they (Morgan Stanley) were referring to.

But first, a little background on me. I was born and raised in Miami to two Cuban parents who immigrated to the United States in 1963, a few years after Fidel Castro took over. Other than the three years I spent in law school, I lived in Miami my entire life—until 2018, when I moved to northern Florida, in the Jacksonville area. Cuban culture is a huge part of who I am. I love the food, the traditions, the energy, everything about it.

Ready for a U.S. Economy That is “Cubanized?”

Recently, I came across an article connected to Morgan Stanley discussing the U.S. economy. Specifically, it mentioned how, at least in the automotive sector, Trump’s tariffs might bring a touch of “Cubanizing” the U.S. economy. When I read that, I immediately thought, “I know exactly what they mean,”  because the Cuban culture is in my DNA.

There’s a documentary—one a lot of people are already familiar with—called “Cuban Chrome.” I believe it’s available on Netflix. It’s an excellent documentary that dives into the challenges faced by car enthusiasts in Cuba. It explores several issues, including how some people are simply trying to join a car club.

We’ve all seen articles highlighting the classic 1957 Chevys still rolling through Cuban streets. It’s an incredible sight. And I remember an old joke, though I don’t recall it perfectly, so it probably won’t sound as funny when I retell it.

It was about a CIA agent who went to Cuba and was completely baffled. He couldn’t understand how the country functioned. He said something along the lines of: “There’s no food, but the people are healthy. There are no gyms, but the women are beautiful and in great shape. There are no cars or car parts, yet the streets are filled with 1957 Chevys and classic Fords.” He lost his mind trying to figure out how any of this was even possible.

For years, long before “Cuban Chrome” and all the documentaries, I’d read about how many car parts these rolling classics were from the Russian Lada. Somehow, people were making parts from one car work on a vehicle from 1957 or whatever year, and it’s absolutely fascinating. Cuban ingenuity is unmatched.

I have a story that perfectly illustrates this. Years ago, I had a divorce client named Ruben. One day, I was driving on the Palmetto Expressway in Miami, and I knew his workplace was just a couple of exits away. My car was acting weird, so I called him up and said, “Ruben, my clutch is giving me trouble. Can I swing by your workplace? Maybe you can take a look.”

When I got there, he wasn’t working on a regular car—he was working on a Greyhound bus. Not for the actual Greyhound company, but some other business I wasn’t familiar with. So I asked him, “Ruben, do you know how to work on Greyhound buses? Are you certified?”

He just laughed and said, “Nah, I’m not certified in anything.”

Confused, I asked, “Then how do you know what you’re doing?”

His answer was simple: “You figure it out. You grab a part here, find a solution there, and eventually, it all comes together.”

That right there is Cuban ingenuity. My people are absolutely brilliant when it comes to problem-solving, especially with cars. The creativity they’ve demonstrated over the years is incredible, and “Cuban Chrome” captures that perfectly.

You see how they source parts from anywhere they can and somehow make it all work. These cars don’t just run—they have stunning paint jobs and careful restorations that make them look brand-new. The whole documentary is really fascinating, and honestly, a bit of a tearjerker toward the end.

President Trump’s Tariff Wars Are to Blame

Now, Morgan Stanley says the U.S. economy might get “Cubanized.” So what exactly were they referring to? That level of creativity, resourcefulness, and determination? That same ingenuity applied to the U.S. economy? If so, it’s going to be interesting to see how that plays out.

If tariffs hit 25%, Americans might start doing what Cubans have been doing for years, holding onto their cars longer. Instead of trading in for a new vehicle at the first sign of trouble, they’ll repair and maintain the ones they already own.

I’ve done the same myself. I had an F-150 for 11 years, racking up well over 100,000 miles, and it still drove just as smoothly as the day I got it. I took that truck cross-country at least four times, starting from Miami, not Jacksonville, so I wasn’t shaving off 400 miles. Plus, there were endless trips to North Carolina and the Keys. I loved that truck, and honestly, I felt bad giving it up. I guess I was humanizing it in a way—it was indestructible. But the “Silver Fox” gave me a lot of great memories.

Now, I’ve got an F-250, which I love, aka… “Big Red,” but of course, there’s a car payment attached to it.

But it makes sense, right? I’ve been saying from the beginning—people need to be prepared, one way or another, for the possibility of a recession. Even if we don’t officially meet the definition of a recession, we could still face some tough times. And if that’s the case, how do we prepare?

Take May 5th, for example—that’s when student loan wage garnishments begin. That means people have to brace for potentially a few hundred dollars disappearing from their paychecks or bank accounts.

Depending on your situation, now might be the right time to buy a car, either to get ahead of potential tariffs or to avoid them altogether by purchasing a used vehicle. But on the flip side, buying means taking on more debt, which could make holding onto your car the more sensible option. The problem is, the more people hold onto their cars, the greater the long-term impact on the U.S. economy.

The latest I heard was that President Trump is looking to exempt car parts, which would be helpful. Maybe it’s not a massive relief, but an extra $100 being saved adds up quickly.

This is just one example of people adjusting, both Cubans adapting to economic challenges and now, as Morgan Stanley points out, Americans might do the same, “Cubanizing” their finances, whether they realize it or not.

I’d rather not see a future where, 30 years from now, streets are packed with Nissan Maximas and Toyota Tercels simply because people have no choice. I want to see an economy that thrives, not one that struggles.

But this is a reality of adjustment, and that’s why I keep saying it, over and over.

Everyone’s situation is unique. This isn’t a show where I tell you, “Go buy this stock,” because what works for one person might not work for another. What I try to emphasize is that your situation is personal, and you need to sit down, analyze it, and ask yourself: “How could I be affected?”

One example is cars. Another is shopping, people are adjusting by buying more in bulk at places like Costco and Sam’s Club. If prices keep rising or shelves start looking emptier, stocking up could be a smart way to save money. Of course, this could result in panic buying, but we can only play the cards we have been dealt.

I’ve even read about small lifestyle changes people are making. One example was a teacher who wanted new sweatpants, but instead of buying them, she just dyed her old ones. Others are doing their own hair and nails. These little adjustments add up and reflect how people adapt to economic shifts.

So, it’s time for “Cubanizing,” making things last, getting creative, and adjusting to our new financial reality.

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