Excessive government regulations are the cause of Puerto Rico's economic stagnation and massive emigration, writes Jorge L. Rodriguez.
What Puerto Rico needs is not regulation or undue and unnecessary government intervention, but economic freedom so that people can be the engine of prosperity. (Supplied)
Puerto Rico is among the bottom 10 places in the world in economic growth, along with countries such as Venezuela, Yemen, Sudan, Libya and Equatorial Guinea. It is sad that the island has fallen so low, but understandable, since we are the jurisdiction in the United States with the least economic freedom.
This means that in Puerto Rico it is twice as difficult to make an honest living as it is in the United States. The government's excessive regulatory burden and its overwhelming intervention in individual aspirations and initiatives, as well as in productive activity, are restricting the economic freedom of our people.
For example, in Puerto Rico there are 13 occupations that require a license to work, which is not required in any of the 50 states. In addition, there are 34 other occupations for which a license is required that between 47 and 49 states do not require a license.
On the other hand, we rank last in ease of doing business among 83 of the top jurisdictions in the United States. This gives us a clear idea of why it is so difficult in Puerto Rico to start a business, create jobs, work, earn a living wage and progress.
What Puerto Rico needs is not regulation or undue and unnecessary government intervention, but economic freedom so that people can be the engine of prosperity. The difficulty and lack of incentives for entrepreneurship and work in Puerto Rico have contributed to the fact that only 4 out of every 10 people currently participate in the formal economy.
In fact, it is estimated that economic transactions on the island that do not report income to the government exceed $17 billion. This places Puerto Rico's labor participation rate at number 168 out of 176 countries in the world.
Lack of opportunities, economic stagnation and a declining quality of life have led more than half a million Puerto Ricans to leave their homeland in recent years, leaving behind their loved ones, friends and family.
Many of them are productive, college-educated people, which Puerto Rico needs to strengthen its labor market and spur innovation and development on the island. Greater economic freedom in Puerto Rico could curb emigration by creating a more favorable environment for investment, fostering the creation of quality jobs, and increasing workers' incomes.
This would improve economic conditions on the Island, generating a more attractive and beneficial environment in which people can prosper without having to seek opportunities elsewhere. Only by creating wealth through the talent, creativity and innovation of Puerto Ricans in a free market can we reduce dependency and poverty and achieve the well-being our society needs.
To do this, it is essential to remove the barriers imposed by the government and unleash the potential of the people. It is time to reclaim economic freedom for all, so that every individual can realize his or her dreams and life projects in Puerto Rico.
This article was originally published in Spanish in El Nuevo Día.
