In case you missed it, John Oliver and Lin-Manuel Miranda break down the real reasons Puerto Rico is struggling so much economically: a long history of different, preferential rules and programs for the rich from the states that economically has handicapped the larger community AKA modern colonialism. There are special tax breaks, loop holes and unequal voting, shipping and bankruptcy laws that benefit vultures who feed off of decay, chaos, vulnerability, desperation and collapse. Even the toll roads on the island are owned by Wall Street! If we think there is legalized corruption through an oligarchy in the U.S. proper (which there most certainly is!), Puerto Rico is this on steroids.
What a powerful piece. Now we the people need to stand up and take the power back!
I saw this and although its meant to be funny, its the first time I’ve seen a fact based explanation on the news. On the east side of the island, I drive by shuttered factories a result of 936 going away. The only thing he missed in this piece is the fact that the discontinuation of 936 was politically motivated. Newt Gingrich went on national TV and called it corporate welfare – never mind the massive tax breaks and outright grants he provided to Oil & Gas companies. On the mainland, Puerto Ricans are traditionally Democrats and this was payback.
How far do we want to go back? Puerto Rico has been a political chess piece for so long it’s ridiculous. For instance, before 936 people in Puerto Rico mainly traditionally worked in agriculture. When the 936 tax incentives brought the pharmaceutical and other companies to the island it also had the effect of taking people from the land/country and into the cities. When the incentives were gone -politically motivated of course as you mentioned, the businesses had no real roots to Puerto Rico (they were only interested in the money, not the society/people) and so they of course jumped ship.
This left many jobless and homeless and had already taken them away from their traditional (agricultural) ways of supporting themselves and left them desperate. So at that point there is super high joblessness, and homelessness only now with the added problem of no one working in agriculture to produce food. So PR (still to this day) has to ship in almost all of its food (from the big junk food industry, yes hello again Wall Street and Jones Act) even though it has the potential to be much more food secure and self sustaining!
From that point then Puerto Rico has to take more desperate measures like selling off nearly every asset including our roads, utilities and jails just to stay afloat and pay the debt of past desperate measures. And it’s still happening up to and including the latest modern tax haven acts which essentially are trying to do the same thing as 936. When will we learn!? When will we say Enough -¡Basta ya! We need sustainable answers, not just another broken prop.
Basically, Wall Street and the US oligarchy create a problem, then they sell a poison cure that only makes a bigger mess and positions themselves for full almost dictator-like tyrannical control. Economic Hitmen. How much blood are they going to try to squeeze from the rock? This whole thing is straight out of the old dirty colonialist playbooks. It’s amazing to witness it in action.
I almost wish Acts 20/22 were like 936, which provided a lot of employment. There’s a lot of detail about these acts but no requirement to employ more than a handful. This thing will get worse before it turns around. Read about the deal the guv Is making to extend the existing expressway contract. A sweet deal for them and a pittance for us because we need the $ now. Tolls will be collected In both directions! Also since PREPA the power company Is broke, rates are going up by June. Any recovery will take at least a decade with a federal fiscal control board (junta) making all spending decisions. There will be protests. I wouldn’t be surprised to see civil unrest. Good thing we live on a beautiful lush Island. Keep calm and farm on. — Fran
I agree. The employment was good in some senses (except it took people from their traditional support structures), but there should have been some sort of tie down for them. Either a steep penalty for leaving or some sort of slow pull out/severance package and/or job relocation services (back to farming preferably!). Like you said, with the current acts they don’t even cause a noticeable improvement in employment rates at all and is all geared at outside entities and services! Just a more obvious tax haven.
Ugh about the toll roads and the power. Thankfully we rarely drive and over here on the west there still aren’t tolls between Arecibo and Ponce. I’m sure the vultures are eyeballing it though. I will take it as more reasons to do as we are…Grow our food. Spend time with good people. Appreciate what we have. Use less. Buy less. Drive less. Opt out of the mess as much as is humanly possible.
Wow, what a great video describing everything! I so agree with this. Something needs to be done and I worry for PR. Thank you, Cassie for this post!
There is a point missing the global economy.It is cheep[er to manufacture items in China and Taiwan than made in USA or Puerto Rico.General Motors don’t make cars in Detroit anymore,Harley Davidson don’t make motorcycles in Milwaukee but i found Toyota and Honda have their factories plants in Tenesse and Kentucky.The solution might be a way to lower overhead cost lower taxes and open the markets the way Signapore have done for the past 50 years.
This won’t probably turn around until the U.S. electorate wises up and throws out a lot of congress, including most Repugs. I think that time is coming, but in the meantime I hope Lin Miranda writes a cool play about P.R.. It would have a lot deal with, starting with the (first) Spanish conquista to the current one by Wall Street and the boys. Super video, thank you.
This piece saddens me but compels me to help any way I can. Puerto Rico is a beautiful island with beautiful people who have clearly been taken advantage of. They are us, they have given much to overall American pop, art, dance, athletics and culinary culture. Our govt treats them like a resource rather than Americans which puts a bad perspective on mainlanders who care and wish to relocate to the island.
Joshua, I so agree with you! I hate the way the govt is treating PR.