Part III: The "Rich" Port City

Make no mistake; Puerto Rico is in dire straits. The Puerto Rican government owes more than $72 billion in debt – that’s about $20,000 per person, or 70% of its GDP.



The reasons behind Puerto Rico's decline are manifold, though most arguably stem from ill-conceived U.S. policies which have negatively impacted Puerto Rico's ability to function financially.

Former iterations of this series have focused on the role of default and/or bankruptcy in municipal functioning: it has simply looked at the investors and workers whom the government owes. It has not considered how defaults and bankruptcy's affect the population footing these hefty, hefty bills.

There is no better example of the impact of municipal bankruptcy on the residents of a municipality than Puerto Rico; a territory where its citizens are leaving in droves, hoping to find a home with more opportunity.

To put the economic crisis into numbers: in 2010, Puerto Rico was home to 3.73 million residents, it's unemployment was 16.7%, average household income was $18,791, and poverty rate for families was 41.5%. By 2014, the population dropped to 3.64 million, unemployment hit 18.3%, household income was $19,686, and the poverty rate grew to 45%.

To put the economic crisis into human terms, it has had a very dramatic impact on the ability of the Puerto Rican community to function. It has led to massive transfer of population to other places, impacting the ability of Puerto Rico to raise enough revenue to pay off taxes. This massive population influx into Florida is also impacting the community in Florida, causing a backlash about the Puerto Rican migrants. Lastly, it has also impacted Puerto Rican food security. For more information on these effects, please see the videos above.

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