How to improve Puerto Rico's economy?

Question

What "achievable" steps can we as puertorricans take in order to improve our economy, and overall social wellbeing?
Our current governor tried to pay our international debt, yet due to partisan motives within our Senate and House of Reps., he failed to get such proposal passed. For such a small island, we've always had a horribly bloated and inefficient government, and every "positive" development have come by becoming even more indebted to other nations and banks. As a society, we are extremely collectivist in our views of each other, and therefore, consistently incite one another to maintain an "us vs. them" attitude. I don't agree with becoming annexed to the US, I disagree with the central economic planning of socialism that the PIP promotes, and I think our current political structure, as established in the "E.L.A." Constitution, is outdated, limiting, and counterproductive in nature. How do you think we should proceed in order to fix our country's mess?

Answer 1

First of all, introducing free-market incentives in tax policy, labor law and regulation is paramount. Puerto Rico should be a thriving prosperous tourist location of the Caribbean, but thanks to your government's leftward leanings their policies have discouraged business investment by making it too expensive to hire and fire employees and expand business.

I noticed back in the 1990s, my company, American Airlines closed their fight attendant base there because of the large labor cost it imposed on the company thanks to high Puerto Rican payroll taxes. They moved these jobs to Miami.

Puerto Rico needs to eliminate taxes on labor. It doesn't matter if those taxes are paid by the employer. The burden falls on the employee and results in fewer jobs. There should be no minimum wage other than that imposed at the federal level. You should reduce tax rates across the board. Regulation requirements to start a business should be minimized.. MAKE PUERTO RICO AS CLOSE TO A FREE MARKET ECONOMY AS POSSIBLE.

Answer 2

Puerto Rico needs to fully control it's economy (which now it doesn't control all the factors and cannot freely sign deals with other nations without the 'ok' from the US) and needs to resolve the status question which brings uncertainty. Puerto Rico needs to become sovereign while looking at an economy that will benefit all (scandinavian socialist model like Sweden) and not a small tiny group (must avoid models like the Argentina of the 1990's under president Menem, the Venezuela under Carlos Andres Perez of the late 80's or the ill advised economic recipes from the IMF and World Bank that has caused many horrible and permanent social ills thru latin america while making rich just a few natives and the multinational companies while leaving the rest of the population out in the cold and desperate, a next door neighboor, Dominican Republic is a good example of what not to do).

Answer 3

My answer is similar to Ace.
In the early days of Hong Kong, the British Governor vetoed any government spending that meant increased taxes and any regulations that increased red tape on businesses.
The result was an economy that far outgrew ANY other in the East and most of those in the West.
Social programmes and worker protection schemes are fine for well developed economies that can afford them. But first you have to grow into one of those prosperous economies.
There is an old English saying: "the road to hell is paved with good intentions" - by trying to 'do good' your government is dooming it's citizens to more or less permanent poverty.
Minimise regulation, minimise ALL government spending and watch the economy fly. But be prepared, there WILL be casualties. And you have to live with that.