This post is part of Hispanic Heritage Month and is submitted by Charles Bennett L’Dec. 2017
Puerto Rico is a territory of the United States and a beautiful place to visit; unfortunately, it is not a place its own citizens want to be right now. It is currently 72 million dollars in debt which it cannot repay. The support that our federal government gives Puerto Rico is significantly low even though its government is extremely dependent on the US economy. The majority of the exports and imports Puerto Rico does are with the United States. The island has a 12% unemployment rate and is having difficulty raising revenue. This along with poor government has spending (not considering expenditures based on revenue) has put Puerto Rico in this financial situation. Because Puerto Rico is a territory of the United States, it doesn’t possess the same privilege as the states do to file for bankruptcy, so dealing with this issue has become a problem.
Puerto Rico has to follow the regulations of the United States; this has taken its toll on the island. Puerto Rico has to comply with U.S. Federal Minimum Wage Standards while trying to compete with its neighboring islands, all of whom do not have to follow those same rules, and this can be burdensome for those trying to do business on the island. Things are naturally more expensive, and this is illustrated by the fact that costs of labor, energy and transportation are double what they should be. Puerto Rico is already at its limits for future investments. In order to bring itself out of debt its government has to find new ways to increase revenue and make efficient adjustments in its expenses. This is not something Puerto Rico can do alone; it has not being receiving adequate help or support from the United States that it deserves and this has to change.
Melissa Duncan
Melissa Duncan is a double Elon alum (B.A., 2006 and J.D., 2009). She serves as Director of Career & Student Development at Elon Law. Email her at mduncan6@elon.edu or stop by 110C to say hello!
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