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FAQ

Why is Puerto Rico poor?
Unfortunately this question is one that can have many answers depending on the political views of the writer. A long and tedious essay can be written and not all points will be taken care of.For starters we have always being a colony.Christopher Columbus discovered the island in 1493 and since then until 1898 we were a Spanish colony. No matter the degree of autonomy attained during those last years of Spanish rule, we were a colony. After the Spanish American War we were given to the US along with the Philippines and Cuba. For the rest of the early 20th century we were an important military American enclave, due to the proximity to the Panama Canal. During most of this period Puertoricans were very poor and most worked in agriculture.In the early part of the 20th Century PR was more concentrated economically in producing sugar, with a bit less emphasis on coffee, tobacco and other agricultural products. This obsession with a single crop, resulted in a lot economical problems for the workers when no sugarcane could be harvested. Also the employers paid workers in their own currency for expenditure in the stores owned by these sugar companies (How clever!). Then we had two things: The Great Depression and the election of the first Puertorrican Governor Luis Muños Marin. His platform was one were pressure was put on the Sugar companies to reduce the quantity of fields they used for production and using the New Deal Federal funds from Roosevelt a sudden industrialization of the island was encouraged along with emigration so people could find work in other states (Hawaii, New York).Since then every single governor has found ways to try and give Puertorricans jobs in the private sector that are not related to agriculture and fomenting job positions in the government in exchange for political favors. Also in the 60s Puertorricans started receiving food stamps, housing subsidies, etc. Between the 80s and 90s started the decline of the cheap labor force because of the increase of living costs and federal minimum wages. It’s during this time that the immense clothing factories started to move operations to cheaper countries and large Pharmaceuticals started arriving here.Into the 00’s these pharmaceuticals started leaving the island due to the rising operational costs and our whole economy started being mostly sustained through consumption. This changing industrial landscape caused a lot of people to lose jobs and started receiving government welfare (mostly federal). Then with fears of loosing elections every administration has not stopped people to prefer living in welfare and basically in poverty but active in the underground economy. Aside from that the economic atmosphere is one were workers earning minimum wage are expected to sustain themselves without any help or benefits, thus they are not able to get out of poverty. This island is one were people are highly educated, especially bachelors degrees that compared to the US is way cheaper to go to college here, but there are no jobs for them.This leads to the problem we have of emigration and a geriatric population. The shrinking base of people able to work is reducing and now we have too many retirees. These people are facing poverty due to broken promises of having a retirement fund for government employees that cannot sustain itself. This is important to workers like policemen who do not pay Social Security, and are left with just the state retirement payments.The massive debt we have is due to political reasons, every single party here when they developed a budget, they fixed the deficit with a bonds emission. My whole 26 years I always heard that and no one cared. Now with the shrinking labor force, the tools to fix this is taxation and depriving workers of their rights. This in turn will lead PR to stay poor for many years to come. Once we were the envy of every island in the Caribbean, Latin America and even Singapore, but we blew it, we never stopped being a third world island.
What exactly are 'in-work benefits' in terms of the Brexit debate? Would much be gained by denying them to non-UK nationals?;"""In-work benefits"" are benefits
receipt of which is not dependent on being out of work. So tax credits
housing benefit
child benefit etc are in-work benefits. Job seekers' allowance is not. Denying them to non-UK nationals simply because they are non-UK nationals would be discriminatory and illegal under EU law. It is thus not a live option. We could alter our system to a contributions based system
and then deny the benefits to immigrants because they haven't contributed for X years
but this would also affect UK nationals who had not paid in also. That sort of reform would be a massive political undertaking.  In terms of the sums of money at play: EU migrants on benefits: separating the statistics from the spin There is also a lack of wider context. EU migrants make up only a small proportion of the overall benefits caseload. They accounted for 2.5% of benefits the DWP administered in 2022 - mostly out-of-work benefits - in 2014
and 7% of tax credits
based on the HMRC definition discussed above.The DWP analysis says EU migrants on “in-work” benefits cost the taxpayer £530m in 2022. That represents a modest 1.6% of the year’s total tax credit bill.Not very much money
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