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by Vivtek
2829 days ago
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The economic problems of Puerto Rico go way beyond the Jones Act. As long as your item is lightweight, you can turn a reasonable profit here - all the Viagra made for the North American market is made here, and other pharma companies have strong representations. CooperVision sells something like 3 billion pairs of contact lenses a year, made in their plant in Juana Diaz. 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. |
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I never said that the abolition of the Jones Act would be sufficient. But I am saying it's necessary; as long as the Jones Act is in full force, Puerto Rico has no hope at a stable economic future.