Download Free Boom And Bust In Puerto Rico Book in PDF and EPUB Free Download. You can read online Boom And Bust In Puerto Rico and write the review.

Who is to blame for the economic and political crisis in Puerto Rico--the United States or Puerto Rico? This book provides a fascinating historical perspective on the problem and an unequivocal answer on who is to blame. In this engaging and approachable book, journalist A. W. Maldonado charts the rise and fall of the Puerto Rican economy and explains how a litany of bad political and fiscal policy decisions in Washington and Puerto Rico destroyed an "economic miracle." Under Operation Bootstrap in the 1950s and 60s, the rapid transformation and industrialization of the Puerto Rican economy was considered a "wonder of human history," a far cry from the economic "death spiral" the island's governor described in 2016. Boom and Bust in Puerto Rico is the story of how the demise of an obscure tax policy that encouraged investment and economic growth led to escalating budget deficits and the government's shocking default of its $70 billion debt. Maldonado also discusses the extent of the devastation from Hurricane Maria in 2017, the massive street protests during 2019, and the catastrophic earthquakes in January 2020. After illuminating the "century of misunderstanding" between Puerto Rico and the United States--the root cause of the economic crisis and the island's gridlocked debates about its political status--Maldonado concludes with projections about the future of the relationship. He argues that, in the end, the economic, fiscal, and political crises are the result of the breakdown and failure of Puerto Rican self-government. Boom and Bust in Puerto Rico is written for a wide audience, including students, economists, politicians, and general readers, all of whom will find it interesting and thought provoking.
Who is to blame for the economic and political crisis in Puerto Rico—the United States or Puerto Rico? This book provides a fascinating historical perspective on the problem and an unequivocal answer on who is to blame. In this engaging and approachable book, journalist A. W. Maldonado charts the rise and fall of the Puerto Rican economy and explains how a litany of bad political and fiscal policy decisions in Washington and Puerto Rico destroyed an economic miracle. Under Operation Bootstrap in the 1950s and '60s, the rapid transformation and industrialization of the Puerto Rican economy was considered a “wonder of human history,” a far cry from the economic “death spiral” the island’s governor described in 2015. Boom and Bust in Puerto Rico is the story of how the demise of an obscure tax policy that encouraged investment and economic growth led to escalating budget deficits and the government’s shocking default of its $70 billion debt. Maldonado also discusses the extent of the devastation from Hurricane Maria in 2017, the massive street protests during 2019, and the catastrophic earthquakes in January 2020. After illuminating the century of misunderstanding between Puerto Rico and the United States—the root cause of the economic crisis and the island’s gridlocked debates about its political status—Maldonado concludes with projections about the future of the relationship. He argues that, in the end, the economic, fiscal, and political crises are the result of the breakdown and failure of Puerto Rican self-government. Boom and Bust in Puerto Rico is written for a wide audience, including students, economists, politicians, and general readers, all of whom will find it interesting and thought provoking.
If there is one thing that all stakeholders in Puerto Rico's fiscal crisis can agree on (and there are likely not many such things), it is that, without real economic growth, the Commonwealth of Puerto Rico will neither be able to repay its creditors nor offer its residents a viable, let alone prosperous, future. The Commonwealth's recently certified fiscal plan calls for sizable reductions in government expenditures, significant increases in overall revenue collections, the rightsizing of Puerto Rico's bloated government, labor reform, unprecedented adjustments to public pension systems and a litany of regulatory reform and other measures to facilitate new business formation. But when it comes to driving economic growth, particularly over the short term, the Commonwealth and the certified fiscal plan are relying heavily on the entry into a series of public-private partnership (PPP) transactions to jump-start the economy, contemplating approximately $5 billion of new investment over the next two years. Normally, investors and lenders to PPP projects avoid pursuing projects where the government's ability to provide financial, operational and logistical support is subject to considerable uncertainty. Additionally, any PPP project undertaken today in the Commonwealth will have to overcome real challenges when it comes to forecasting the projected use or need for a given PPP project in light of the overall macroeconomic uncertainties, particularly the possibility of further and accelerated population loss. Further, PPP sponsors and lenders may be rightfully concerned about the prospects of executing such transactions. Rather than speculate over the likelihood of that target being reached, this article focuses on how the tools provided by the Puerto Rican Oversight, Management and Economic Stability Act (PROMESA) can help mitigate some of these risks and even facilitate future PPP projects in Puerto Rico.
A Brookings Institution Press and the Center for the New Economy publication A non-incorporated territory of the United States, Puerto Rico operates under U.S. legal, monetary, security and tariff systems. Despite sharing in these and other key U.S. institutions, Puerto Rico has experienced economic stagnation and large scale unemployment since the 1970s. The island's living standards are low by U.S. standards, with a per capita income only half that of Mississippi, the poorest state. While many studies have analyzed the fiscal implications of Puerto Rico's political relationship with the United States, little research has focused broadly on the island's economic experience or assessed its growth prospects. In this innovative new book, economists from U.S. and Puerto Rican institutions address a range of major policy issues affecting the island's economic development. To frame the current situation, the contributors begin by assessing Puerto Rico's past experience with various growth policies. They then analyze several reforms and new initiatives in labor, education, entrepreneurship, fiscal policy, migration, trade, and financing development, which they incorporate into a proposed strategy for jumpstarting Puerto Rican economic growth. Contributors include Gary Burtless (Brookings Institution); Orlando Sotomayor, Luis Rivera-Batiz, Ramón Cao, Maria Enchautegui, José Joaquín Villamil, Eileen Segarra, Marinés Aponte, and Juan Lara (University of Puerto Rico); Richard Freeman and Robert Lawrence (Harvard University); Helen Ladd (Duke University); Francisco Rivera-Batiz (Columbia University); Steven Davis and Bruce Meyer (University of Chicago); James Alm (Georgia State University); Ingo Walter, Rita Maldonado-Bear, and William Baumol (New York University); Belinda Reyes (University of California, Merced); Alan Krueger (Princeton University); Carlos Santiago (University of Wisconsin); David Audretsch (Indiana University); Ronald Fisher (Michigan State University); Fuat Andic (UN Advisor); Arturo Estrella (NY Federal Reserve); James Hanson and Daniel Lederman (World Bank); James Dietz (University of California, Fullerton); and Katherine Terrell (University of Michigan).
This is a companion volume to "Restoring Growth: The Economy of Puerto Rico" (Brookings, 2006), in which economists from Puerto Rico and the United States examine the islands economy and propose strategies for sustainable growth. This monograph summarizes the analyses published in that volume and presents a set of policy recommendations to increase employment, improve education, upgrade infrastructure, and fix government finances.
Why do stock and housing markets sometimes experience amazing booms followed by massive busts and why is this happening more and more frequently? In order to answer these questions, William Quinn and John D. Turner take us on a riveting ride through the history of financial bubbles, visiting, among other places, Paris and London in 1720, Latin America in the 1820s, Melbourne in the 1880s, New York in the 1920s, Tokyo in the 1980s, Silicon Valley in the 1990s and Shanghai in the 2000s. As they do so, they help us understand why bubbles happen, and why some have catastrophic economic, social and political consequences whilst others have actually benefited society. They reveal that bubbles start when investors and speculators react to new technology or political initiatives, showing that our ability to predict future bubbles will ultimately come down to being able to predict these sparks.
Research has found that negative liquidity shocks contract bank lending and amplify economic downturns. This paper investigates a reverse scenario -- the effects of a flooding of liquidity on financial markets, using the case of Puerto Rico as a quasi-natural experiment. The U.S. Tax Reform Act of 1976 implemented tax incentives (through IRC Section 936) to stimulate economic development in Puerto Rico. In combination with local incentives, Section 936 corporations generated significant funds, most of which were deposited in local (PR) banks. The tax incentives were repealed in 1996, allowing for a 10-year phase-out period. I analyze the effect that the 936 funds had on Puerto Rico's banking industry between 1984 and 2016. I find that 936 funds did stimulate loan growth -- in particular, C&I lending, and real estate loans. However, the stimulus appears to have been “too much” -- the incidence of troubled loans (90 day past due) among banks that received 936 funds was significantly higher after Section 936 tax subsidy was repealed, indicating that a sizable portion of the projects those banks were financing were inefficient. The implementation and subsequent removal of these tax incentives introduced an extended boom-bust cycle that dislocated Puerto Rico's economic structure, contributing to the ongoing economic crisis.
As OPEC has loosened its grip over the past ten years, the oil market has been rocked by wild price swings, the likes of which haven't been seen for eight decades. Crafting an engrossing journey from the gushing Pennsylvania oil fields of the 1860s to today's fraught and fractious Middle East, Crude Volatility explains how past periods of stability and volatility in oil prices help us understand the new boom-bust era. Oil's notorious volatility has always been considered a scourge afflicting not only the oil industry but also the broader economy and geopolitical landscape; Robert McNally makes sense of how oil became so central to our world and why it is subject to such extreme price fluctuations. Tracing a history marked by conflict, intrigue, and extreme uncertainty, McNally shows how—even from the oil industry's first years—wild and harmful price volatility prompted industry leaders and officials to undertake extraordinary efforts to stabilize oil prices by controlling production. Herculean market interventions—first, by Rockefeller's Standard Oil, then, by U.S. state regulators in partnership with major international oil companies, and, finally, by OPEC—succeeded to varying degrees in taming the beast. McNally, a veteran oil market and policy expert, explains the consequences of the ebbing of OPEC's power, debunking myths and offering recommendations—including mistakes to avoid—as we confront the unwelcome return of boom and bust oil prices.
"How did Puerto Rico end up in its current situation? A Spanish-speaking territory controlled by the United States and populated by the descendants of conquistadors, enslaved Africans, and indigenous inhabitants, this island (or rather archipelago) has a unique history. Jorell Meléndez-Badillo begins the book with an overview of the pre-Columbian societies and cultures that first inhabited Borikén, the indigenous name of the Puerto Rican archipelago. Though the arrival of the Spanish had a profound impact on Puerto Rico's history, he takes care to tell the story "from the shore" and not "from the boat." The Taínos were not merely passive victims; though they were enslaved and murdered during the Conquest, they also had powerful leaders like Agueybaná II who organized the Americas' first indigenous insurrection against colonial rule in 1511. When the colonial enterprise was consolidated a few decades after the Conquest, Puerto Rico became a military outpost for the Spanish Empire. By the nineteenth century, Puerto Rico was a slave colony, and it was ruled through a combination of reform and authoritarianism. This resulted in the proliferation of unsuccessful slave revolts and, in 1868, an insurrection that declared the Republic of Puerto Rico, which only lasted 48 hours. Puerto Rico's major regime change came in 1898 with the US occupation. Though being controlled by the United States has shaped Puerto Rico's history in innumerable ways, it inadvertently fostered a sense of puertorriqueñidad (Puerto Ricanness) among the Island's inhabitants. US colonization may have involved forced Americanization, but it also provoked a multi-layered resistance to those projects, from passive disobedience to armed insurrections. The creation of the Puerto Rican Commonwealth in 1952 involved using a number of institutions to create the notion of cultural nationalism that was detached from the island's colonial status, included Puerto Ricans in the diaspora and was not contingent on obtaining national sovereignty. The last part of the book focuses on more recent developments from the neoliberal turn in the 1990s to current (and likely future) socio-economic and environmental crises"--