Filed under: Capitalism, Economy, Freedom, Politics, Regulation, Taxes | Tags: 35% of the Population Works, Moving to the States, The Commonwealth of Puerto Rico
Puerto Ricans move to the United States all the time, but now Puerto Rico has joined New York, New Jersey, Maryland, Illinois and California as tax-and-spend blue states that are losing residents because of government policy. More than 450,000 Puerto Ricans have left over the past decade, with 1.000 arriving in Orlando, FL every 10 days.
More Puerto Ricans— about 5 million—now live in the continental U.S., according to media reports, than live in Puerto Rico. Doctors are leaving, teachers are leaving, lawyers and engineers are pulling out. Unemployment at 15.2% is higher than the bottom U.S. state (Rhode Island, 9.2%) and far exceeds the national average of 6.7%. Only 35% of the working-age population in Puerto Rico actually works.
The economy is in its eighth year of recession and is expected to contract by another 2% this year. It has plunged roughly 14% since 2006. To solve the commonwealth’s problems—a public debt of $70 billion, a downgraded credit rating, and talk of default—the government has done what the left always does, and has hiked taxes.
They might look to Texas as an example of what to do. Low taxes, no personal state income tax, a light regulatory role and an inviting business climate that encourages 52 Fortune 500 companies, and jobs —252,000 jobs created in 2013 alone. And it has added more than a half-million people, 148,000 from California. Even commonwealths can benefit from such policies.