Economic relationship between us and puerto rico

Puerto Rico's Relationship with the United States? - US History Scene

economic relationship between us and puerto rico

Puerto Rico is currently a commonwealth of the United States. slavery in Puerto Rico, but the island's plantation economy persisted. Puerto Rico (Spanish for "Rich Port"), officially the Commonwealth of Puerto Rico and briefly called. However, while the transfer led to dramatic socioeconomic transformation, Puerto Ricans' dreams of political and economic development faded during the first.

It was planted using a coa, a kind of hoe made completely from wood. Women processed the poisonous variety of cassava by squeezing it to extract the toxic juices.

economic relationship between us and puerto rico

Then they would grind the roots into flour for baking bread. Batata sweet potato was the next most important root crop.

economic relationship between us and puerto rico

It was cooked and eaten off the cob. Corn bread becomes moldy faster than cassava bread in the high humidity of the West Indies. Tobacco, calabashes West Indian pumpkins and cotton were grown around the houses.

Other fruits and vegetables, such as palm nuts, guavasand Zamia roots, were collected from the wild. Slaves were minimally remunerated for or forced to work in farms, mines, households, and other aspects. Agriculture was the primary mean of productionas well as livestock which was originally imported from Europe.

Sugar canetobacco, coffee, and minor fruits were the primary cultivations which were exported to Europe and, by so, constituted the main economy for the island. United States rule[ edit ] This section may lack focus or may be about more than one topic.

Why is Puerto Rico not part of the United States of America?

November In the early 20th century the greatest contributor to Puerto Rico's economy was agriculture and its main crop was sugar, displacing other cash crops such as tobacco and coffee.

Roosevelt launched the Puerto Rican Reconstruction Administration, which provided agricultural development, public works, and electrification of the island. Economic conditions have improved dramatically since the Great Depression because of external investment in capital-intensive industries such as petrochemicalspharmaceuticals and technology. Starting in the late s a series of projects called Operation Bootstrap encouraged, using tax exemptions, the establishment of factories.

Thus manufacturing replaced agriculture as the main industry of the island. Operation Bootstrap was based on an "industrialization-first" campaign and modernization, focusing the Puerto Rican economy on exports, especially to the United States. As a result, Puerto Rico is now classified as a "high income country" by the World Bank.

Following the Fair Minimum Wage Act ofPuerto Rico is also subject to the minimum wage laws of the United States, which gives lower-wage countries such as Mexico and the Dominican Republic an economic advantage in the Caribbean.

Puerto Rico - Wikipedia

In recent years, some U. Puerto Rico is subject to U. Also, starting aroundthere was heavy migration from Puerto Rico to the Continental United Statesparticularly New York Cityin search of better economic conditions.

Puerto Rican migration to New York displayed an average yearly migration of 1, for the years —, 31, for —, 45, for —, and a peak of 75, in Census Bureau estimates that more people of Puerto Rican birth or ancestry live in the U.

economic relationship between us and puerto rico

When the United States acquired Puerto Rico infollowing the Spanish-American Warit found itself in control of a poor island whose inhabitants were mostly involved in small-scale coffee and sugarcane production. Low wage rates, advantageous tax breaks most notably Section of the Internal Revenue Code, enacted by the U.

Congress inwhich exempted mainland companies from federal taxes on income earned in Puerto Ricoand government-supported start-up costs induced hundreds of manufacturers from the United States and some from Europe to establish operations in Puerto Rico. At first these factories produced mainly textiles, processed food, shoes, clothing, ceramics, tobacco, and wood products, but in the s they also began manufacturing petrochemicals and other high-technology products.

Remittances from relatives living in the United States have also constituted an important source of household income. In the s the Puerto Rican government privatized several state-run businesses, notably hotels, food-processing facilities, telecommunications and transportation companies, and hospitals. In the U. Congress voted to gradually phase out Section from the U.

The rollback of these federal tax credits over the next 10 years led to an increasing decline in manufacturing production and employment in Puerto Rico.

Economy of Puerto Rico - Wikipedia

Although there are extremes of wealth and poverty in Puerto Rico, from at least the s the island traditionally had a large middle class. Its median household income is far below that of the United States, but the vast majority of Puerto Ricans live a modest middle-class existence by Caribbean standards.

economic relationship between us and puerto rico

As the manufacturing sector declined and revenue fell in the late s and early s, the Puerto Rican government borrowed heavily to continue to finance the comfortable lifestyle which most Puerto Ricans had become used to. Resources Other than picturesque beaches and a tropical climatePuerto Rico has limited natural resources.

Puerto Rico’s Relationship with the United States?

Only clay, silica sand, and stone are found in economically significant quantities. Large deposits of copper, and some gold, exist in the mountains south of Utuado and Lares but have not been mined, in part because of environmental concerns.

economic relationship between us and puerto rico

Agriculture, forestry, and fishing Agriculture, forestry, and fishing account for a relatively tiny amount of the gross domestic product GDP and employment.

Sugarcane production, supported by low-paying, seasonal labour, is now relatively insignificant, and Puerto Rico imports much of the molasses required for its important rum industry. Coffee, tobacco, and milk remain traditional farm products, but several farms are dedicated to specialized products, such as pineapples, mangoes, melons, and other tropical fruits as well as beef, pork, poultry, and eggs for local and export markets.

Bamboo and tropical hardwoods support a small furniture industry. However, by the early 21st century most of the canneries had been closed and their operations relocated to countries with lower hourly wages. The waters surrounding Puerto Rico are generally renowned for sportfishing but cannot support commercial efforts.

Manufacturing At the beginning of the s, manufacturing accounted for approximately two-fifths of the GDP.

Puerto Rico

However, increasing global competition and the changes to the Puerto Rican economy brought about by the removal of Section contributed to the closure of many manufacturing companies and reduced the number of those working in manufacturing by nearly one-half. The manufacturing sector is no longer as competitive in labour-intensive industries because U.

Apparel, processed foods, and soft drinks are also important. Several smaller factories are owned by local entrepreneurs.

  • Economy of Puerto Rico

Finance and trade Trade generates about one-tenth of the GDP and employs one-fifth of the workforce, whereas finance, real estate, and insurance create roughly one-fifth of the GDP but employ less than one-twentieth of the workforce. Puerto Rico relies on U.