Free Market

The reform of the labor reform: blow to competitiveness

Free Market /

Instead of taking advantage of and promoting competition between the business sector, in order to ensure that they offer better compensation arrangements and employment conditions to attract the best available talent, the reform of the labor reform equalizes for all economic agents the basic costs of human capital, eliminating the aggressive competition that otherwise would have arisen.

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Free Market
Carlos E. Diaz Olivo
June 21, 2022

Market concentration: source of inflation at the local level?

Free Market /

By 2017, Puerto Rico had fewer registered establishments than each of the 50 states, adjusting for population, implying a higher market concentration in Puerto Rico, on average, than in the United States. These market shares have historically been divided among no more than 4-5 major competitors. Firms in concentrated industries, due to little competition, may raise prices in the face of increases in their costs above what they would rise in a competitive market.

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Free Market
Emanuelle Alemar
June 9, 2022

Puerto Rico on the verge of discharging its bankruptcy

Free Market /

The plan of adjustment and Puerto Rico’s exit from bankruptcy is a welcomed development. However, without structural reforms and changes to the political culture towards confidence in free individuals, the Commonwealth will probably become insolvent within a decade. In light of this experience, policymakers in Capitol Hill should begin preparation for another PROMESA.

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Free Market
Ojel L. Rodriguez Burgos
February 22, 2022

Make Public Education a Market Economy—Not a Socialist One

Free Market /

Nobel laureate Milton Friedman once compared our nation’s education system to “an island of socialism in a free-market sea.” Similarly, nearly 30 years ago, the then-president of the American Federation for Teachers Albert Shanker wrote, “It’s time to admit that public education operates like a planned economy, a bureaucratic system in which everybody’s role is spelled out in advance, and there are few incentives for innovation and productivity. It’s no surprise that our school system doesn’t improve: It more resembles the communist economy than our own market economy.”

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Free Market
Peter Greene
January 5, 2018
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