Articles

When we pay closer attention to the thoughts that Hayek, in his work, "The Foundations of Freedom" wrote for us, we can adopt a certain air of confusion and even similarity with what we are experiencing nowadays: "There is no doubt that many people are afraid of freedom, because the opportunity to make one's own life also means an incessant task, a discipline that man must impose on himself to achieve his ends".

Complaining about steep rent in major cities is as original as leading a conversation with “well how about that weather?” But knowing there’s a housing problem and knowing how to fix it are two different things, and sometimes well-meaning efforts to keep rents down end up backfiring. Experts say we need to make it easier to build new homes.

Puerto Rico is at a transcendental moment in its history, where the decisions we make today will impact the future of our youth. In this crucial scenario, it is imperative to reflect on the vital role that the free-market economy plays in the development and prosperity of our island.

Gov. Ron DeSantis and Florida Republicans have spent years aggressively turning the state into a haven for school choice. They have been wildly successful, with tens of thousands more children enrolling in private or charter schools or homeschooling. The district has lost more than 20,000 students over the last five years, a decline that comes as charter schools in particular experienced sizable growth in the area. Enrollment in charters, which are public schools operating under performance contracts freeing them of many state regulations, increased by nearly 27,000 students since 2010, according to Broward school officials.

Some time ago, a private study in Argentina revealed something as surprising as it is evident, although it sounds contradictory. What the State spent on a standard bed in a public hospital was greater than the amount spent in one of the most desirable and inaccessible private clinics for most of the population. The difference was even abysmal. However, every time budgets for health or education are discussed, the only thing that is talked about is the amount. As if the only thing that could improve the situation was a greater amount of economic resources. Although it is evident that this is false, the debate is practically closed.

The $20 fast-food mandate is harming workers and business. The laws of economics continue to exist even when politicians ignore them. The latest illustration is the unfolding damage from California’s increase in the fast-food minimum wage to $20 an hour. An Associated Press dispatch last week reported that California fast-food franchises have been cutting worker hours after the wage mandate took effect in April, a 25% increase from the statewide $16 an hour minimum. A Wendy’s franchise owner said he used to schedule nearly a dozen workers for an afternoon shift. Now only seven. He also raised prices 8%.

Unfortunately, governments inadvertently eliminate many of these essential entry-level jobs by advocating for higher minimum wages. This lost first rung has profound consequences, especially for vulnerable groups like young individuals, part-time workers, the unmarried, and those without a high school diploma. Such individuals rely on these low-wage positions for income and to escape the cycle of government dependency and poverty.

Puerto Rico, a US territory with a limited ability to set its own tax policies, will be the first part of the US to be substantially affected by Pillar Two, the global tax agreement that seeks to establish a 15 percent minimum tax rate on corporate income. Pillar Two is a significant threat to Puerto Rico’s development model, which has typically featured lower taxes. Puerto Rican lawmakers have begun to respond. However, no comprehensive tax reform addressing Pillar Two has thus far crossed the finish line and become law.