Reflections
From the history of TJ Ranch in the blog As Time Goes By, Reflexions tells the story of how I've seen the changes in Puerto Rico over the years.
What was Puerto Rico Like Forty Years Ago?
During the election season, my favorite journalist, Bianca Graulau, wrote an Instagram story which I can’t quote, but she said that the youth of today doesn't know the Puerto Rico of their parents and grandparents . The children of the last two decades have grown up with austerity measures and the "Americanization" of the island that has affected every part of their lives. https://www.instagram.com/biancagraulau/?hl=en
Bad Bunny’s new album and video , “Debí tirar mas fotos” reflects the same idea that Puerto Rico today is not what it was and I agree. https://youtu.be/gLSzEYVDads?feature=shared)
So what was Puerto Rico like forty years ago?
Life in the Mountains
I wasn’t following politics in 1984 when Reagan was president and Hernandez Colon was governor. I was 32 years old and I left Boston, my home of seven years, and came to Puerto Rico to put an addition onto my “casita del campo”. I found my contractor by asking at the local hardware store who they would suggest. That hardware store (ferreteria) no longer exists. As my addition was almost done, I decided I needed a stair to the get to the loft. I didn’t want any extras on the job, so I traded a calf for the stair. The contractor butchered the calf and gave me some meat. It wouldn’t have happened in Boston, but that’s how things were here. I loved it!
Even though I had never heard of Section 936 of the Internal Revenue Code, it was in full force. The 1976 tax incentive allowed manufacturing companies avoid income taxes on profits made in Puerto Rico. People in Puerto Rico seemed to be working, but my world was far from the booming pharmaceutical industry in Barceloneta.
The Farm
My 41 acre property borders a large farm (500 acres) that originally had dairy cows and then switched to coffee. In our community of about 25 families, many worked on the farm. Today the property is owned by an American who has a house in San Juan, as well as the farm, but is presently living in the states. He has two workers to oversee the farm, most of which has returned to “monte”. The farm house is unoccupied.
The Neighborhood
In the old days, a woman in the neighborhood sold (canecas) pints of rum, candies, onions and potatoes from her house. Down the hill and across the lake, there were two small stores (colmados). Weekends the “chicken man" was selling bar-b-q on the road. It was easy to chit chat with locals. I loved speaking Spanish and nobody seemed to mind my horrible gringa accent. Neither the stores nor the “chicken man” are here today.
Shopping and Food
When I got here, I shopped in the town of Arecibo for things I needed. There were two supermarkets but there were always items you couldn't find. Anyone coming to visit would ask if there was anything they could bring. There were no fast foods yet, but ten years later they were a major industry.
Taina Rosa of Caribbean Business wrote (July 28, 2005) "With sales reaching over $1 billion, the island's fast-food industry is satisfying the local market's changing lifestyles." She says that the fast-food chains are one of the largest employers with 40,000 jobs, almost as many people as the local hospital industry. I'm sure those statistics are different today as the health industry is in shambles. At first it was just the "regular" fast-food establishments like McDonalds and Burger King. It was about 2005 when I met a parent at my children's school who couldn't afford either of the big franchises, but opened a Taco Maker instead. Even though Mexican food wasn't a big thing, he thought it would do better than Subway because at that point Puerto Ricans didn't really eat (cold) sandwiches. Today I think all the fast-food franchises are here.
For more information about food and Puerto Rico, watch How the US Changed the Puerto Rican Diet:https://youtu.be/t0WGbfA4bKE?feature=shared
The furniture store where I bought my bed was right on the plaza of Arecibo. Citibank (no longer here) was also on the Plaza. In an article from 2015 El pueblo murió”: la crisis económica de Arecibo (The town died: the economic crisis in Arecibo) Mario Mercado Diaz states "Since 1995, merchants have seen the drastic deterioration of the local economy and commerce. Now, the lasting effects of the Great Recession of 2006 and the imposition of the increased SUT (11.5% in sales taxes), predict even more difficult times for the island's merchants and consumers...number of local stores founded and managed by families in Arecibo are now preparing to close their doors. La Criolla bakery is a family business that has been in operation for three generations and Papo, its current owner, is striving to keep its doors open despite the current crisis. He told me that since the municipal offices, post offices and banks in the town center were removed, business has been very slow.....Poor planning has redirected and decreased the flow of people in the urban area. Orriola, owner of a jewelry store, explained that the construction of Expreso #22 directed consumers away from the town and to shopping centers such as Plaza del Norte in Hatillo. Competition with megastores, malls and national chains has thwarted local economic growth. Worse still, the entry of foreign chains, such as Walgreens, into the urban area was facilitated."
It's Hard to Make it
I don’t know if there was a conscious effort to get rid of small businesses and street vendors, but the expense of permits and monthly sales tax deposits makes it extremely difficult. Late fees and penalties are added daily if IVU (sales tax) is not deposited on time. Payments are made online so often a small street vendor would need an accountant to make the deposits.
Even the Arecibo Book Club, a woman’s lending library book club, which was established in 1967 had difficulties. Until 2017 they had a bank account. Members paid yearly dues which were used to buy books. They changed banks when there were mergers or closings, but not until the banks charged monthly fees and required social security numbers did they give up their account all together. https://tjranch.com/a-club-like-no-other-and-a-tribute-to-its-founder/
So what happened?
Congress voted to phase out 936 in 1996 and by 2006 the phase out was complete. Manufacturing jobs left the island and so did many working people. The Great Recession (2007 -2009) was a global financial recession which also affected Puerto Rico. While emergency measures like bank bailouts helped the recovery in the states, Puerto Rico continued to borrow. In 2015 Puerto Rico could no longer pay its debt. In Puerto Rico the 70 billion dollar debt had to be paid back. *
* In a way, it seems so unfair. If I invested in a Broadway show and it closed upon opening, I would lose my money...bad investment. I guess this is more like borrowing money from a loan shark and losing it on the track....bad investment but payback is worse.
In 2016 President Obama created The Financial Oversight and Management Board for Puerto Rico consisting of seven members appointed by the president and one by the governor. The Financial Oversight Board known as La Junta reviews and revises Puerto Rico’s budget. Many say that the board’s ties to the banking and investment world were the same group of people who produced the debt crisis in the first place. 10 of Novembre 2017 TELEMUNDO PR published the Junta salaries, paid with public funds, totaling $1,695,000. It caused outrage, especially that of the executive director, Natalie Jaresko who earned $625,000 annually.
Public - Private Partnerships
Puerto Rico has tried to alleviate its financial problems with Public-Private Partnerships. The airport, highway and tolls as well as electricity, water/sewer and ferry transportation all have some partnership going on. I can’t tell if it’s any better this way. Nothing seems very reliable and the price of everything keeps going up. *
*To me it seems like an oxymoron: the government serves to do things individuals can't...build roads and schools, provide essentials of light and water while private enterprise's goal is to make a profit.
ELECTRICITY:
Everyone knows that Puerto Rico's electrical grid is still on the brink of disaster. LUMA Energy began operating the transmission and distribution of electricity in June 2021. They are paid $70 -105 million annually by Puerto Rico, although I think this has gone up. There are continual black outs and they have raised their rates numerous times.
In the old days when the electricity went off, I would drive down to the dam and report it. I didn’t have a telephone but they did and somehow got the brigade to come out and fix it. I guess I wasn’t as dependent on light except for my fridge and some light bulbs and didn't seem to panic like I do now with three freezers and communication powered by electricity.
University of Puerto Rico
I had heard about UPR when I lived in the states. It always had a fine reputation. I had a design teacher at Washington University who led summer studios at UPR. It accepted highly qualified students and offered a quality education. I’m not sure that’s true today. It’s certainly struggling with budget cuts and a smaller enrollment. Is this part of the austerity measures of the Junta? Is that where cuts should be made?
Public Higher Education in Puerto Rico:Disaster, Austerity, and Resistance, 2001 Rima Brusi and Isar Godreau said, “Soon after the first official meeting of the FOMB on Wall Street in 2016, in a letter addressed to then-governor Alejandro García Padilla, the FOMB demanded that the university cut about a third of its overall budget…..”
January 2025 I don’t have to elaborate on this headline: UPR on the Brink: 64 Programs Face Closure Amid Economic and Demographic Crisis published in The News Journal : Puerto Rico and the Caribbean https://www.theweeklyjournal.com/top-stories/upr-on-the-brink-64-programs-face-closure-amid-economic-and-demographic-crisis/article_3c559abc-d98d-11ef-ba94-17f55f8f4ea4.html
Centro de Periodismo Investigatico : February 2025 reported, "" One in four students at the University of Puerto Rico, Río Piedras Campus (UPRRP) experienced food insecurity between 2023 and 2024, 9% faced homelessness, and 62% survived on less than $500 a month, according to a new study published in January by the Institute of Psychological Research at the school’s Faculty of Social Sciences."
A beautiful campus, extensive academic programs are in desperate straights. The university I thought of as top notch is falling apart.
Medical Tourism
Probably around 2012 I heard a lot of talk about making Puerto Rico a medical center for all of the Caribbean. It has always served those on smaller islands who needed chemo or other treatments, but I thought Puerto Rico was going to actively pursue this area. What a great idea for the island residents as well as those in need unable to get proper treatments elsewhere. Marriott Hotels were built near medical centers; I thought for families of those seeking treatment.
So what happened to this idea? Today it is reported that almost half of the island's hospitals are no longer operational. (AI overview)The financial debt crisis as well as Hurricane Maria had a devastating effect on the island for both its residents and structures. Many people left the island including many of the island's doctors. Doctors can no longer afford to stay. Reimbursement rates for Medicaid patients are much lower than in the states. Although many young doctors would like to stay on the island, most can't afford to pay their student loans with the salaries here.
Film
Quite a few films have been made in Puerto Rico, but it's definitely not the Hollywood of the Caribbean. I think one of the many ideas for Roosevelt Roads, the abandoned naval station which closed in 2004 was a film center. Of course there were other unfulfilled plans for the area such as a mega yacht marina, casino and luxury villas and even a Disneyworld of the Caribbean.
I did know someone who was scouting film areas, but it was when Zika was in full force and with a cast of mostly women, Puerto Rico was not selected for the site.
Some of the movies that were made in Puerto Rico include:
Contact (1997)
Dirty Dancing (2004)
Fast Five (2011)
Runner Runner (2013)
22 Jump Street (2014)
Acts 20, 22 and 60
In 2012 the Puerto Rico legislature passed Act 20 (Act to Promote the Relocation of Investors to Puerto Rico) that exempts local taxes for relocated people residing in Puerto Rico.
Puerto Rico Tax Act 22, hoped to stimulate economic development by offering nonresident individuals 100% tax exemptions on all interest, dividends, and long-term capital gains.
Act 60 combines act 20 and 22 so that an individual is granted Puerto Rico tax exemption long term gains as a result of investments made after becoming a resident will be exempt from tax in Puerto Rico.
The purpose of these acts are to create investments, but they have really become a way to enable outsiders to come to the island and buy and turn over real estate gentrifying areas and pushing locals out. Although I'm not in the business world, I haven't seen investments that help local people. They buy gas at the pumps, groceries in the stores and maybe use local people to repair a roof.
These tax incentives are not offered to local residents.
The Future
No one really knows what's going to happen with Trump's holds on federal monies, but aside from that, there have been some trends which have residents alarmed.
I thought we all had learned that it's important to let the natural barriers stand between the water and coastal communities. Mangroves are important in Puerto Rico to protect the inland.
April 11, 2023 Danica Coto AP report:
SAN JUAN, Puerto Rico (AP) — Puerto Rico’s governor declared a state of emergency on Tuesday to fight worsening coastal erosion across the U.S. territory that officials blame on climate change.
The government is setting aside $105 million in federal funds to implement nearly two dozen measures to offset the ongoing loss of land and minimize its effects.
For awhile it seemed like government officials had gotten the point. Perhaps it's not a good idea to build close to the coast.
There are also plans to build mega resorts which would turn Puerto Rico into another Hawaii or Miami Beach. The planned resorts are for the rich and would provide low paying jobs in the service industry.
The Christopher Columbus Landing Resort was a proposed hotel development in Aguadilla for the Playuela coast, with surfing spots and a diverse ecosystem. The project consisted of a 50 million dollar hotel complex beachfront that was stated to be take over 121 acres of land out of the 150 acres land that playuela consists of. The project was halted after petroglyphs were found but I'm not sure it's totally out of the question.
The latest project I heard of is Esencia, a luxury residential and hospitality development spanning 2000 acres and featuring a 3-mile stretch of pristine beachfront; it includes plans for high-end hotels, residences, golf courses, an equestrian center, and a bilingual school, aiming to create a diverse international community within the development.
This is in an area of Cabo Rojo where I spent a lot of time. When I came to Boqueron it was a "sleepy " town, a hurricane hole for boaters in the Caribbean. Everyone knew everyone.
This blog was intended to look at the past. Perhaps the future will be the subject of a new blog.....but for now there a two things to remember.....Neither the beaches nor the island of Puerto Rico are for sale!
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