Sunday, May 29, 2011
Dominican Republic versus Puerto Rico
Thirty years ago the President of the Dominican Republic visited Haiti and remarked that he hoped that one day his country would have a city as nice as the Haitian capital, Port-au-Prince. Over little more than a generation, the relative position of the two countries changed dramatically. Today, Santo Domingo, the capital city of the Dominican Republic, is a developing city of 3 million people with a growing economy and a strong leadership position in the culture and economy of the entire Caribbean basin. While Port-au-Prince has sunk so low in its own sloth and filth that the filth is literally killing it with a raging Cholera epidemic that no amount of foreign aid or bleeding hearts can lift it out of. What is the difference? In a simple sense, Haiti receives an incredible amount of direct foreign aid and the Dominican Republic is forced to only accept loans targeted for specific development projects. One country has drowned in welfare, the other has had to endure tough love. Tough love is winning by a mile. Can we predict the future with the Dominican Republic's other neighbor, Puerto Rico? The numbers are tricky to dig out, but Puerto Ricans as a defined group probably receive larger U.S. handouts per person than even inner-city blacks living in the States. The figures are hidden in subsidized businesses, tax credits, and a myriad of other governmental smoke and mirror budgeting tricks, but the effect is that the Puerto Rican economy is only floating on the largesse of the U.S. taxpayer. It takes so long to check out at the grocery store because of all the different welfare cards that are used to pay for items. Two overloaded shopping carts can come to a grand total of less than $20 actual cash. Of course it takes a nice new SUV to carry everything home. The next time you hear that Puerto Rico is poor and needs help go see for yourself before you waste your money. Puerto Rico is drowning in welfare and there exists no real, productive economy. This cannot last much longer, once the American taxpayers start demanding more value for their hard-earned dollars. In thirty more years, I predict that the Dominican Republic will be far ahead of neighboring Puerto Rico. In the past year alone, the noticeable increase in small business investment is amazing and heartwarming. Tough love and financial reality, building a better future.
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