The First 30 years of U.S. Colonization Set the Stage for Puerto Rico’s Dependency on the U.S.
Many people asume that the United States invasion of Puerto Rico brought wealth and democracy to Puerto Ricans. Let’s take a look at history and see if this myth is true.
Throughout Puerto Rico’s history, U.S. capital has always been favored at the expense of the impoverishment of Puerto Ricans. This trend started right after the invasion.
In the days following the 1898 invasion, the U.S. government devalued the Puerto Rican currency by 40% and confiscated all revenues from tariffs and sent them directly to the U.S. Treasury. The devaluation of the Puerto Rican peso devastated the local economy. Furthermore, the confiscation of all tariff revenues also contributed to the economic collapse because, before the invasion, all funding for Puerto Rico’s local government came from the collection of tariffs at the ports. These actions severely impoverished Puerto Ricans, particularly local landowners, who, due to their dire financial situation, had to sell a significant portion of their land to U.S. sugar companies. Moreover, the price of consumer goods rose dramatically on the Island as a result of the drastic devaluation of the local currency. Regarding this era in Puerto Rican history, the late pro-independence leader Carlos Gallisá said:
Absentee capital seized the land, plantations, and sugar mills, carrying off the wealth produced by Puerto Rican hands and leaving us the miserable wages that plunged the country into extreme poverty.
La Deuda: Una crisis política
By 1929, 51 percent of Puerto Rico’s wealth was in foreign hands; the government was running an $18 million deficit; unemployment reached 46 percent; and the illiteracy rate was 40 percent.
A little-known fact among Puerto Ricans is that, on the day of the invasion, the Island’s government had a budgetsurplus equivalent to $17 million today. By 1929, the Island had an $l8 million dollar deficit, which is equivalent to $338 million in today’s dollars.
ECONOMIC FACTS: Immediately after the Invasion
1.The U.S. Devalued the Puerto Rican Currency by 40%. This Act Caused the Financial Ruin if Many Puerto Rican Landowners.
2.The U.S. Confiscated All Revenues Collected from Tarrifs by the Local Government of Puerto Rico at its Ports. This Brought an Economic Crisis because, at the time, the Local Government Financed 100% of its Operations with Revenues from Tariffs.
But, what About democracy?
1.In 1898 the U.S. overthrew a government elected by the people of Puerto Rico (the Autonomous Council).
2.The U.S. imposed a military government from 1898 to 1900.
3. For a period of 50 years after the invasion, the U.S. president would appoint the governor of Puerto Rico; the president would also appoint most of the members of the executive and judicial branches.
As you can see, contrary to popular belief, U.S. rule did not bring wealth or opportunities to Puerto Ricans. On the contrary, the American presence brought a long era of extreme poverty and underdevelopment that lasted until the 1960s.
The first thirty years of U.S. colonization set the stage for Puerto Rico to become stuck in a dependent economy
from which it has not been able to break free to this day.
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