The Real Deal: How the U.S. is hurting Puerto Rico
Puerto Rico is the American island that most of us forget about. Many Americans are unaware that Puerto Rico is part of the United States. Fewer are aware that Puerto Rico is a territory of the U.S. and was taken from Spain during the Spanish-American War. Most Americans are completely unaware that the unemployment rate in Puerto Rico is over 11 percent and the government is over $70 billion in debt. Many also don’t know that Puerto Rico’s governor is calling on the federal government to help to prevent a looming “humanitarian crisis,” and that this island is suffering and it is under our flag.
For decades, Puerto Rico has sat gently outside public consciousness. Puerto Rico became a U.S. possession after the Spanish-American War. The main island of Puerto Rico is the smallest in the Greater Antilles, near the Dominican Republic and the Virgin Islands. Its capital in San Juan and the main island is home to nearly 3.5 million people. This may not seem like a large number. However, that is more people than live in 20 states. The island’s economy is based off of manufacturing, mostly of textiles and pharmaceuticals. Finally, Puerto Rico is classified as an organized, unincorporated territory of the U.S.
So what is going on? Puerto Rico is $70 billion in debt, and many of the factors causing that debt is due to the U.S. Puerto Rico is subject to restrictions in trade due to cabotage laws. Foreign ships cannot travel between the U.S. and Puerto Rico, they must offload goods at one or the other and then have them carried by a U.S. ship to the other. Many experts point out that if this rule were lifted, prices would go down in Puerto Rico because it would no longer have to be the second stop on the chain, and foreign ships could start their deliveries in Puerto Rico instead of the U.S.
More drivers behind the debt crisis are Puerto Rico’s social programs. Roughly 60 percent of Puerto Ricans use Medicare/Medicaid programs. This would be sustainable, accept for the fact that the federal government does not assist territories like it does states. Congress decided to put an arbitrary cap on the amount of money the federal government can send territories. So in a given year Puerto Rico will receive just under $400 million in federal funding, Mississippi will receive over $3.5 billion.
Now, there are a large number of factors contributing to the economic crisis, but many of the problems are inflicted by the U.S. government. Puerto Rico cannot file for bankruptcy because Congress will not let it. If Puerto Rico defaults on its debt, millions will lose their pensions and possibly their healthcare.
Congress does not care about Puerto Rico because Puerto Ricans do not get to have a voice in the system. What is worse is that the Puerto Rico does not get to elect any voting representatives to that government. That lack of representation, coupled with the fact that Puerto Ricans do not get to vote for President, is exactly why most mainstream politicians do not talk about the crisis. The only Presidential candidate to make any references to Puerto Rico was Martin O’Malley, and his campaign unfortunately never got off the ground.
It is up to non-Puerto Ricans to voice concern to our congressman about the state of Puerto Rico, and how they desperately need some sort of assistance. If we do not act soon, we may very well see a massive humanitarian crisis under our flag.