more concern is being shown for vulture hedge funds holding the island’s debt than for millions of Puerto Ricans suffering from the collapse of their economy
one must wonder if the down spiraling of the Puerto Rican economy was attributed to the elimination of IRS tax incentives under IRC 936? The empirical data from the World Bank suggests that it did have an enormous impact on the island. Following the elimination of the tax incentives in 1996, the gross domestic product in Puerto Rico went from approximately 10% in 2000 to approximately -3.5% (that’s right negative 3.5%) in 2006 and then thereafter it has hovered at less than 0% GDP. Hundreds of jobs were lost as Puerto Rican subsidiaries of mainland corporations closed down and moved their operations to Mexico and other Caribbean countries after the passing of trade treaties like NAFTA and CAFTA. Could it be that the U.S. entered into trade agreements with Mexico and other Caribbean countries that took away business activity in Puerto Rico (a U.S. interest) in favor of foreign countries?
Maybe, now Puerto Rico is expendable.