Economy and Crime Spur New Puerto Rican Exodus
By LIZETTE ALVAREZFEB. 9, 2014
SAN JUAN, P.R. Alexis Sotomayor has many reasons to stay in Puerto Rico: his two children; his mother and their gossip sessions over plates of fried rice; and the balm of salt and sun that leavens his life on the island.
But the artisanal soap business that Mr. Sotomayor built is barely hanging on amid rising costs and taxes, and sales that have sunk by 40 percent in five years. Crime is rampant; his girlfriend was nearly carjacked at gunpoint recently. So last month he boarded a flight to Orlando, Fla., to interview for a job at a rum distillery in the hope of joining the ever-growing Puerto Rican diaspora.
I dont see it improving, said Mr. Sotomayor, a 47-year-old chemical engineer. I see it getting worse. Its the uncertainty. What am I going to do wait until it gets worse?
Puerto Ricos slow-motion economic crisis skidded to a new low last week when both Standard & Poors and Moodys downgraded its debt to junk status, brushing aside a series of austerity measures taken by the new governor, including increasing taxes and rebalancing pensions. But that is only the latest in a sharp decline leading to widespread fears about Puerto Ricos future. In the past eight years, Puerto Ricos ticker tape of woes has stretched unabated: $70 billion in debt, a 15.4 percent unemployment rate, a soaring cost of living, pervasive crime, crumbling schools and a worrisome exodus of professionals and middle-class Puerto Ricans who have moved to places like Florida and Texas.
The situation has grown so dire that this tropical island, known for its breathtaking beaches, salsero vibe and tax breaks, is now mentioned in the same breath as Detroit, with one significant difference. Puerto Rico, a United States territory of 3.6 million people that is treated in large part like a state, cannot declare bankruptcy.
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