Christopher Beebout Assignment 16

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            You know, I usually don’t keep up with popular music. So much of it is the same. People love it at first, but as the repetition of the catchy beat begins to assume the monotony of a jackhammer and as we realize the shallowness of the lyrics’ unattainable dreams, the song dies out.

            “Despacito” is no exception. Its bawdy message and music video paint a picture of Puerto Rico that reinforces what the tourist industry wants us to think about the island: it’s one of those glitzy, exotic getaways full of new sights and experiences just dying to be bought for American dollars. Seeing as how tourism was one the island’s only major sources of revenue, many Puerto Ricans tried as hard as they could to keep that gilded veneer intact. So what might it take to tear that veneer away? A hurricane might do the trick.

            Before Maria, Puerto Rico had over 70 billion dollars in debt, a poverty rate of 45 percent, and in the past decade its population had decreased from 3.9 million to 3.4 million due to citizens abandoning their home as a lost cause (Kranz, 2017). After Maria, their people lost much of what little they had, and the price tag of reconstruction is 95 billion dollars, more than doubling their debt (Disis, 2017). Fonsi may enjoy going slowly, but Maria had no such intentions.

            But the hurricane also stirred up the most central debate on the island that has lasted for over a century—that of identity. You see, Former Puerto Rican Supreme Justice José Trías Monge once called his nation “the world’s oldest colony” (as cited in Mooney, 2001). That label fits the island like a glove, since from 1493 to today, either Spain or the United States has claimed it. Right now, as our “unincorporated territory,” Puerto Rico’s relationship with the mainland is politically and economically uneven, leading policymakers to fight for what status they believe is the best path to prosperity, state or territory. As Vladimir Lenin put it, “What is to be done?” The answer is not as simple as we would think.

            Amid the hell that is the island currently, statehood definitely looks attractive. According to recent plebiscites (as cited by Gonzalez, 2013), about 45 percent of Puerto Ricans desire statehood for their nation, as they believe it will pull them out of their economic and political ditch. Representation is one gain they cite. As an unincorporated territory of the U.S., Puerto Rico has its own elected three-branch government, but it is subject in all areas to the supreme authority of the U.S. federal government. And only one non-voting seat in the House of Representatives speaks for them there. Federal voting rights also pose a point of contention, as Puerto Ricans have none and cannot vote for their top executive, the U.S. president. Pedro Cabán (2013), professor and Department Chair of Latin American, Caribbean & U.S. Latino Studies at the University at Albany, points out that although Puerto Ricans are U.S. citizens, the U.S. government, by its oppressions, is “reasserting to the world that Puerto Rico is a territorial possession whose inhabitants are denied the internationally recognized right of self-determination” (Cabán, 2013). Such bitterness proliferates much of the population.

Another advantage states have over Puerto Rico is the amount of federal aid they receive. The average U.S. state receives around 60 billion dollars from the federal budget, while Puerto Rico only receives around 15 billion (Puerto Rico Report, 2017). Proponents of statehood also cite the issue of Puerto Rico’s immense debt. It has been deemed unpayable, especially post-Maria, and their constitution bans bankruptcy (Cabranes, 2015). So in the eyes of many, the only option is for Puerto Rico to become a state and merge its debt with that of the U.S., shifting its lenders’ demands to the more financially capable mainland.

But statehood is dangerous, as opponents have found, costing Puerto Rico its political flexibility and unique economic status. They claim that the island should content itself with the status quo commonwealth status.

One of the most recent clashes over status occurred in the 2016 Supreme Court case, Puerto Rico vs. Sanchez Valle, in which Puerto Rico attempted to try gun dealers who had already plead guilty in federal court. During the debate, Justice Stephen Breyer wrote, “Longstanding customs, actions and attitudes, both in Puerto Rico and on the mainland, uniformly favor Puerto Rico's position—that it is sovereign… for purposes of the double jeopardy clause" (as cited in Wolf, 2016).  With each statement like this, Puerto Rico approaches closer to political empowerment without having to take on the burdens of statehood.

One of these burdens would be acquiescence to the state template. If Puerto Rico were to become a state, an overhaul of the island’s current government would be required to match the U.S. Constitution’s dictations. The ensuing juggling act of new agencies, officials, and regulations could exacerbate the island’s rampant corruption. The FBI has already arrested hundreds of officials there in recent years, and the U.S. Government Accountability Office has stated, “the GAO found little assurance that territory Medicaid funds are protected from fraud, waste, and abuse” (U.S. Government Accountability Office, 2016). A tumultuous transition to statehood would only provide more cover for such shady endeavors, and make available many more funds to ‘misallocate.’

This statehood template would also have adverse effects on Puerto Rico’s economy by abolishing territorial benefits that states are not eligible for. As Alejandro Garcia Padilla, former governor of the island, declares, "Puerto Rico is different because it has a distinct contributory condition and it's not a state. If that advantage is eliminated, it would impoverish Puerto Rico" (as cited in Agencia EFE, 2013). For decades, the U.S. has endowed Puerto Rico with unique economic conditions designed to make investments look more attractive, such as tax exemptions, exemptions that the U.S. does not extend to states. Upon reception of statehood, they would be revoked, and new burdens, such as a currently absent federal income tax, would be instituted.

One of these exemptions was Section 936 of the U.S. tax code, passed in 1976. What it did was practically nullify corporate income tax for companies and their subsidiaries located on the island. In its decades of life, it led to the growth of a significant manufacturing industry there, especially in lucrative pharmaceuticals. However, in 1996, the U.S. passed a repeal of the section, in effect over the next ten years. During that period, the Puerto Rican economy abruptly crashed, with World Bank data showing GDP change falling into the negative percentages by the final year of the repeal program. Opponents of statehood contend that statehood would eliminate all hope of regaining these lost benefits, negate all those that remain in place, and add new taxes that the impoverished citizens of Puerto Rico cannot manage.

            And this is why the commonwealth status is winning out as the solution to both identity and hurricane. U.S. officials will not let the statehood movement gain momentum due to the huge financial and administrative burdens it would drag in its wake. When you think about it, the cost of replacing every American flag with a 51-star version alone would set us back billions.  But the island has made civil and economic advances before despite its “lower” status thus far, and will continue to do so successfully only without the shocking abruptness of statehood.

For now, perhaps Maria’s dose of realism will focus our efforts on the more immediate issues and foster closer relations, allowing us to work towards a fairer future for all. It certainly inspired “Despacito” artist Daddy Yankee, who bought 200 gallons of diesel to keep a Puerto Rican food bank’s refrigerator going (Gillespie & Santiago, 2017). But even when reconstruction ends, we will all still find ourselves amid this turbulent debate, and we must carefully balance sovereignty and moderation to safely determine the fate of millions. Thank you.