What is next for Puerto Rico?
Puerto Rico is in trouble. With a faltering economy, $72 billion of municipal debt, and a brain drain of young people packing for the mainland, Puerto Ricans are seriously worried about the future of the U.S. territory. Latino USA explores the Puerto Rican debt crisis, from the history of U.S. involvement in the island’s economy to how its fiscal problems are affecting people today. Plus, the battle on Capitol Hill over Puerto Rico’s future.
Featured image: San Juan, Puerto Rico (Joe Raedle/Getty Images)
Stories from Puerto Rico Underwater
The information that this person is talking about is the truth that the government of pr used as a gimmick to sell their bonds without any security. What we call traps/trampas. The politicos are notrorious for playing dirty tricks like this that is all try do as they sit in their chars thinking about the next trick to play because the island was not producing money. economically. Please do not attack this person because he is talking the truth, ok. And some of you do not like it this, but this is the mentally of our politicos – playing dirty tricks on people. coud y imagine selling bonds at a higher interest rate that the treasury bond. when there is a high interet rate is high risk that is why their high risk. When they are high yield they are high risk and on top of that tax free at all levels. this is the trap the gimmick to get money because there was noon since the 2000 year. y better think about this if you read about fincance before making a comment about what he is saying. the trap was that people saw the high yield and forgot about the risk. People who bought them thought govenment will pay it, but the government in pr does not have any money. They have been broke for a long, long time and now, now the truth broke loose. There is no money, more than Detroit. PR has 4 X the debt of Detroit. Think about it. Uncle Sam will not fix this. The politicos screw up the island, period and do not cover it up. It is clear.
We see the whole truth, a picture of PR situation here and well done. They took the easy road – let us just sell bonds and do not work on developing the economy. What a shame and harm has been done to pr by the politicos. I will be dead 3x before pr recuperates.
We look back with chagrin that 936 was revoked and military bases closed leaving the post Bootstrap economy in tatters. Truth is we hated 936, as it was corporate welfare. The untaxed profits of multinationals never stayed on the island. We hated the bases for the target practice, polluting and bellicose ways. But rather than save and develop for the inevitable rainy days ahead we did nothing. Corrupt politicians lined and line their own pockets, investment
that comes to the island today produces next to nothing other than payoffs for these same politicians, who will now happily sell of our remains to the vulture funds.
I agree with David Vos about the 936 law…it is presented so simply here but in fact, it was hated on the island because it was “Corporate Welfare”. Corporations were given a certain amount of time with “TAX FREE” status if they provided jobs in Puerto Rico. The agreement provided this “tax free” status ONLY if they provided jobs and “agreed” to remain in operation once that “tax free status” ended. However, like “American Ingenuity” these corporations found loopholes and left the island when their tax free status ended. In many cases, they “reinvented” themselves by declaring bankruptcy, returning to the states and changing the name of the company to present it as a “new” company so they would qualify for this “corporate welfare” status again. This created a vicious cycle until President Clinton came along. Once they folded, they created an unemployment crisis and Puerto Ricans began to leave the island to find jobs elsewhere. It started long before President Clinton caved in to the Republicans on the 936 law issue. As far as the Puerto Rican economic history goes, the US has been a major contributor to its demise. Not everyone knows that Puerto Rican produce and other products are not allowed in the states. If they were allowed, that would open a HUGE market for Puerto Rican products and create jobs in Puerto Rico. Example: the pineapple industry in Puerto Rico was decimated in favor of the Del Monte Corporation’s influence on congress to allow their pineapples that were being grown in Hawaii to be the exclusive pineapple products in the US. Now, I ask you, does that make sense to bring in pineapples from Hawaii that is SO much more further away than Puerto Rico? The cost of the transport alone is prohibitive. This, along with other measures Del Monte made sure were imposed, decimated the pineapple industry in Puerto Rico. This not only happened in the agricultural industry but in other industries as well (clothing manufacturing, etc.)…All you have to do is ask any Puerto Rican about how this affected their families back on the island.
NOW, I ASK THE FOLLOWING QUESTION:
Is this a case that should be brought before the UN because of the “COLONIAL” status of Puerto Rico? Can that be done? If so, how? AND (more importantly), Will it be HEARD and ACTED UPON to help Puerto Rico? Some people may comment that “NO…it will make no difference because the US is one of the 5 votes needed and if only 1 of these “BIG FIVE Nations” votes against hearing this issue, it’s dead in the water.”…well, can that be a defeatist attitude or reality? Can Puerto Rico garnish enough influence to make that happen? It would be very interesting to see that. Very quickly, I believe, the US will want to pay more attention to Puerto Rico.