Boom and Bust in Puerto Rico: How Politics Destroyed an Economic Miracle

by A.W. Maldonado

Who is to blame for the economic and political crisis in Puerto Rico―the United States or Puerto Rico? This book provides a fascinating historical perspective on the problem and an unequivocal answer on who is to blame. In this engaging and approachable book, journalist A. W. Maldonado charts the rise and fall of the Puerto Rican economy and explains how a litany of bad political and fiscal policy decisions in Washington and Puerto Rico destroyed an economic miracle. Under Operation Bootstrap in the 1950s and '60s, the rapid transformation and industrialization of the Puerto Rican economy was considered a “wonder of human history,” a far cry from the economic “death spiral” the island’s governor described in 2015. Boom and Bust in Puerto Rico is the story of how the demise of an obscure tax policy that encouraged investment and economic growth led to escalating budget deficits and the government’s shocking default of its $70 billion debt. Maldonado also discusses the extent of the devastation from Hurricane Maria in 2017, the massive street protests during 2019, and the catastrophic earthquakes in January 2020. After illuminating the century of misunderstanding between Puerto Rico and the United States―the root cause of the economic crisis and the island’s gridlocked debates about its political status―Maldonado concludes with projections about the future of the relationship. He argues that, in the end, the economic, fiscal, and political crises are the result of the breakdown and failure of Puerto Rican self-government. Boom and Bust in Puerto Rico is written for a wide audience, including students, economists, politicians, and general readers, all of whom will find it interesting and thought provoking.

Genres: Political Science

266 pages, Hardcover

Published August 1, 2021

Reviews

[Thomas Romano · Rating 4 out of 5]

I am British-Italian, and until 3 years ago could hardly place Puerto Rico on a map.
Last year I read “War against all Puerto Ricans”. Whose author, Nelson Denis, is openly pro-independence. It was interesting to read Maldonado and get a different historical context.
The choice of emphasis is quite the contrast. For instance, Denis dedicates a whole chapter to the Ponce Massacre, where 17 civilians and 2 policemen were killed, while Maldonado only dedicates a few paragraphs to it. The former convinces the reader that the policemen were killed erroneously in crossfire, while the latter mentions a “clash”, leading the reader to believe they may have been killed by the “violent independentistas”.
As I was reading the book, I was also visiting the island for the first time. I was struck just by how much the issue of the its relationship to the US remains salient. I had one Uber driver celebrate Bad Bunny for bringing more tourists to the island, and another call him an anarchist/socialist for pushing for independence.
While reading the book, and visiting the island I couldn’t help but ponder on what I thought the answer to the question on the status of Puerto Rico ought to be. After reading Nelson, I was a staunch independentista. However, this book made me hope the question were abandoned altogether by the islands politicians to focus on economic growth and betterment of Puerto Ricans welfare.
When I read the final words of the book and realized this was exactly Maldonado’s conclusion, I couldn’t help myself from believing a third book may bring me to become a statehood supporter.
Jokes aside, this was a very good dive into the Puerto Rican political history from Muños Marin onwards. It highlights some of the politicians that contributed to the fast growth of the 60s and 70s from both major parties, and points the finger very directly to the new wave of statehood politicians, Roselló in primis.

[Billy Claunch · Rating 3 out of 5]

The book give a great overview of the boom and bust cycle of the past 70 years of Puerto Rico. For me it read in too much detail of the specific parties and entities without wrapping those into a cohesive argument of the root cause of the boom and bust. It would have been great to hear the author’s opinion, clearly stated, for what drove the historical cycles, and what direction would be best at this point.

[Addison · Rating 4 out of 5]

The beginning was a bit tedious with the politics side of things but it helps provide some context later in the book. It seems like the PR government can't get out of its own way and the only people to provide accountability to their actions are the ones partly causing the issues. It seems like the main subject of the book has been brought back to light in recent years and hopefully this will bring some kind of solution to bring economic growth back to the island.

[Daniel Ramos · Rating 5 out of 5]

Excellent book. An analysis of the economic history of Puerto Rico.