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If you are from Puerto Rico, or have any ties to the island at all, you know about Diageo. What was once considered a proud corporate partner to the island, contributing almost 200 good-paying jobs to the economy and millions in revenues and taxes, has become quite the pariah in the eyes of Puerto Ricans everywhere.
The issue revolves around Diageo’s (a British-owned liquor conglomerate) decision to move its operations from the U.S. territory to another nearby territory, The U.S. Virgin Islands, all at U.S. Taxpayers’ expense. Read the rest of this entry »
August 30, 2010, Washington, D.C. – Amidst seemingly endless negative news from the economic sector, Puerto Rico recently developed a project named “Via Verde,” which aims to provide a much-needed boost to the Puerto Rican economy. The National Puerto Rican Chamber of Commerce supports the project, whose goal is to construct a natural gas pipeline to distribute an alternative form of energy production throughout the island, as a means to spur economic development.
Although some costs of living in Puerto Rico, such as housing and land costs, are lower than on the U.S. mainland, energy costs have risen to almost double the average U.S. household costs. One of the Governor’s and other legislators’ most important objectives has been to lower those costs and bring much-needed relief to a population who already has an average income lower than any U.S. state. Read the rest of this entry »
Harvard University professors Edward Glaeser and William Kerr recently published an article detailing their long-standing research that contradicts the generally accepted notion that regional economic growth is highly correlated to the number of large employers.
The professors call the systematic approach of local governments offering economic incentives (usually in the form of tax breaks) to large, developed corporations “smokestack chasing.” However, in contrast to generally accepted political theory, their research proves that incentives for the creation or growth of a greater number of smaller or start-up firms is more attributable to regional economic growth. Read the rest of this entry »