Monopoly Solicitation and The Irony of Puerto Rico Government Inefficiency
- Víctor M. Gaud Cabrera
- Nov 13, 2018
- 3 min read
Updated: Aug 10, 2019
The Irony of inefficiency
The Puerto Rico government have proved its inefficiency many times, during and after hurricane Maria. It’s important to have the perspective that the Puerto Rican government currently has various problems under its administration. In disregard of this the, governor of Puerto Rico donates money to the Florence victims, even when the island hasn’t recovered after a year from hurricane Maria. The governor of Puerto Rico has signed an agreement to help in the reconstruction of Venezuela Government. Put it in perspective that he and his administration is currently under the watching eye of a Federal Fiscal Board, one which approve or disapprove the decision he can or can’t make. This Board has come to over-watch government behavior, due to the lack of trust and the amount of the debt incurring by the government, one which it has being unable to pay. Economist have been calling this the biggest recession in the history of the Puerto Rican economy. In theory a recession is when the curve goes down consecutively for three trimesters, therefore this is an economic crisis that has been happening since 2007.
Puerto Rico Governor feels offended after President Donald Trump, made the statement that he is not going to consider Puerto Rico for statehood because of their big corruption. As a citizen of Puerto Rico this statement doesn’t bother me, because, it’s true. Our government is full of nepotism, unqualified personnel and subsequently organized corruption.
Currently, the legislation of Puerto Rico is in debate to introduce and increase the pension of the majors of Puerto Rico. There are 78 majors, with possible reelection after two years. This also includes allowing these majors to select their successors or the possibility that their sons/daughter inherit the major position. Finally, the government blocks the attempt of constructing Puerto Rico roads with more lasting materials, causing these roads to be in the need of constant repairs and generating contract with beloved beneficiary/dependent friends of the government. President Trump has stated that he will not be assigning more funds for Puerto Rico has previous fund were used to pay old debts. The administration of Puerto Rico has not been doing anything at all after hurricane Maria, the help that was sent in containers for Puerto Rico residents was stolen by government leaders to be sold for their benefit. There has been evidence of stolen goods left on hidden location or land, where the owner where complete “unaware” of the situation. Again, the government haven’t taken any action on this.
Monopoly by solicitation
Cannabis Licensing processes are being requested by “entrepreneurs” to hold or stop due to the increase in the demand for the same. Their argument is that it’s a millions of dollars investment business and the market will be overwhelmed. Product will be lost and eventually they will be incurred in deficit or loss of investment. This goes against a free market as they are seriously requesting or soliciting a monopoly for their businesses. This scenario is repeated on the gasoline distribution industry where its local association of gas station owners are against or trying to prohibit the entrance of Costco gas station. Their main argument is that there are already lots of gas station or trying to speculate that there are too many gas stations in the same location nearby schools. However, it is well known that the majority failed during the harsh time of hurricane Maria or decided to sell gas only to government entities.
After efforts from Federal Fiscal Boards to decrease the minimum wage rate. The legislative chamber of Puerto Rico made a law to increase the minimum wage rate of the construction workers to $15 per hour, this has cause private constructors to lose workers as they cannot maintain a competition against wages implemented by the government. All this in an economy that is demanding high level of construction due to the harm caused by hurricane Maria.
Puerto Rico and other the Caribbean islands are in a great location that should be exploited to it maximum level. Our workers are leaving the island in thousand to mostly work in minimum level jobs in the United States. Where that human capital, knowledge could be used here. However, government and its organized corruption limits the economic growth of Puerto Rico potential by creating container parking spaces, exploiting tourism, provided a more tax paradise scenario for entrepreneurs and not just the super-rich, facilitating the ease of doing business with the world and for the individual.
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