Should The U.S. Government Do More? Why Puerto Rico’s Economic Conditions Matters To the United States

J.Tomas Hexner and Arthur MacEwan
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J.Tomas Hexner: Founder and director, Science Initiative Group at the Institute for Advanced Study at Princeton, New Jersey
Arthur MacEwan: University of Massachusetts Boston

No 2017-14, Development Discussion Papers from JDI Executive Programs

Abstract: In 2016, the federal government established the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) to deal with the Puerto Rican economic crisis. However, PROMESA did not provide substantial and direct support for the island’s economy—i.e., no funds. Should the U.S. government do more? Puerto Rico has an economy larger than several states, and it has a substantial level of trade with the states. Thus, the states have an economic interest in the well-being of Puerto Rico. Aside from narrow economic interests, the federal government has a responsibility to protect its people, whether danger comes from crime, disease, severe weather, or economic collapse. Puerto Ricans, as U.S. citizens, deserve the same protection as their fellow citizens in the states. In terms of human rights, the de facto colonial status of Puerto Rico is in conflict with avowed principles of the U.S. government and has resulted in relatively poor treatment by the federal government. There are several actions that the U.S. government could take to do more for Puerto Rico; for example, including Puerto Rico in federal programs in the same manner as the states are included and providing U.S. Treasury guarantees for new Puerto Rican bonds, which would supply funds to catalyze a new era of economic growth.

Keywords: Puerto Rico; PROMESA; Puerto Rico bonds; sovereignty (search for similar items in EconPapers)
JEL-codes: O1 O2 Z32 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:qed:dpaper:3111

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