America Is Reusing Cuba’s Sanctions Strategy on Iran | Diving In

Do sanctions on Iran actually work? Sixty years of the Cuba embargo say probably not.

Treasury Secretary Scott Bessent just announced what he's calling an "economic D-Day" against Iran — a threat aimed not just at Tehran but at every foreign firm, bank, trader, and shipper that does business with it: choose Iran, or choose access to the U.S. dollar. Justin Wolfers walks you through what was actually announced and then rewinds to 1963, where the Kennedy administration used almost identical language to "tighten the noose" around Cuba. Same playbook, six decades apart.

Here's the problem: the CIA studied the Cuba embargo for 20 years and concluded the sanctions "have not met any of their objectives." Castro stayed in power until 2008; the regime is still there today. Broader research is just as sobering — even optimistic studies find sanctions produce political change only about a third of the time, and almost never regime change against an entrenched authoritarian. One study of Iranian influencers found broad sanctions actually increased pro-government sentiment.

Why should you care? Because sanctions don't stop at the missile factory. There's no border checkpoint that lets in baby formula but not weapons. When you choke an economy, food, medicine, and family remittances get squeezed too — and every time America uses dollar access as an ultimatum, other countries get one more reason to build a system that doesn't need us, quietly eroding the financial leverage that makes your dollar so powerful in the first place.

Subscribe — it's the one economic lifeline we promise never to sever:
on YouTube 👉 https://youtube.com/platypuseconomics
on Substack 👉 https://newsletter.platypuseconomics.com

Follow on Social Media @PlatypusEconomics and @JustinWolfers

See omnystudio.com/listener for privacy information.