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by chimeracoder
2836 days ago
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> Finally, I think Puerto Rico itself also suffers from an artificial handicap with respect to the Jones Act. The Jones Act has prevented Puerto Rico from ever building a solid, stable economy of its own. It's the reason Puerto Rico's economy was in shambles long before Hurricane Maria hit. As long as the Jones Act is in place, Puerto Rico doesn't have an economic future. They've experienced a massive brain drain over the last few decades, because everyone on the island can relocate to the mainland, where everything is cheaper (due to the Jones Act) and there are more lucrative jobs. This creates a vicious cycle which is still ongoing. |
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So it's a disadvantage - and one that has absolutely no relevance to the issues of the twenty-first century and that should long since have been retired (and arguably never passed, or had exemptions made for American islands) - but it's not a showstopper.
No, the real bar to a solid, stable local economy has simply been the ready availability of mainland capital. Anything you see the hedge funds doing in the Midwest was prototyped here first. The entire development strategy of offering tax rebates to relocate manufacturing was invented by Puerto Rico - the idea was that those manufacturing centers would lead to local management and a robust secondary technical and supply economy. This never happened - the mainland companies brought their own managers and continued buying from their established suppliers on the mainland. Puerto Rico was a convenient source of well-trained but very inexpensive labor.
There's a lot of detail. I can't claim to have done more than scratched the surface. But mere abolition of the Jones Act wouldn't be enough, sadly. Not that it will happen regardless.