The U.S Census Bureau released some staggering numbers underlining the precarious economic situation in which many families in Puerto Rico are facing. According to the latest statistics from 2010, 45% of the island's families are living below the poverty level, defined as those having an annual income of $22,314 or less for a household of four. Back in 2000, the poverty level was at 44.6%. (Note: the island's population experienced a notable decrease over the past ten years). Moreover, the Census also revealed that 36.7% of the island's households are beneficiaries of the Nutrition Assistance Program (PAN). In theory, PAN (colloquially known as "cupones") functions similarly to the mainland's food stamp program. At the root of the problem is the high level of unemployment and the historic low level of labor participation rate, which is estimated at just under 40%. Both factors have pushed an increasing number of families on the precipice of financial disaster.Particularly heartrending is a report published by the National Council of La Raza (NCLR), which revealed that 56% of the island's children live below the poverty level. To help remedy this egregious problem, the U.S federal government has consistently provided economic assistance to the island. However, despite such social transfer programs, the island remains stuck in a sort of twilight zone. The reasons for this are numerous, ranging from a sclerotic local government to the misuse of public funds. A perfect example of the latter is exemplified by the Special Community Trust Fund, an initiative which begun under the administration of former Governor Sila María Calderón. This $1 billion social program designed to help families living in poverty has sparked a tremendous amount of controversy as the money in the trust fund has mostly dried up. Furthermore, it has far from achieved its intended goal to help the island's poorest communities. The purpose of this fund was to help construct homes in hundreds of communities that are currently living in dilapidated conditions. Many of the island's social problems, a skyrocketing crime rate and an increase in the high school dropout rate, can be attributed to the high level of poverty.
(Photo Credit: The image above was obtained from www.prensacomunitaria.com).
8 comments:
Has anyone ever explained what happened to the special communities money?
There is another issue: This statistics are based on tax returns and reported income. There is a HUGE underground/black market economy in Puerto Rico.
There is an incentive for people not to report any income that would take them above that income level where you receive government aid. El Mantengo...
So the picture is distorted. How bid is this underground economy?
PR is a complex place. Yes there is a huge amount of unemployment and underemployment but at the same time home ownership is the highest in the US. Also the "basics" of water, property taxes, garbage pickup (free) are low to zero with electricity being very expensive IF YOU USE IT. Part of the problem is that people choose to use it unnecesarily, the amount of things people waste here is horrific and they don't take care of homes they own (as in sweep them with a $1 broom and put garbage in the bin so it can be picked up for free). Most homes have enough dirt to grow at least a few trees on and people don't want the hassle of what, watching them grow? They rather whine about paying a couple dollars for an avocado than plant the seed and grow their own. So yes, there is poverty here but this is one place where the climate allows you to be more self sufficient if you choose to do something it. You aren't going to freeze, water is $10.60 a month (unless you waste it) and a lot of places have colmados close so you don't really have to have to drive a lot. If you didn't have satelite tv, cell phone plans, air conditioners etc you could live here on not much money if you have the house (again - extremely high home ownership here). So I kind of think a lot of the problems are self made. There is also a huge underground (or should I say in-the-streets) economy that doesn't contribute anything to the island's economy but allows people to live better than the numbers look.
I'd also like to point out that unlike the US Mainland, no one in Puerto Rico goes hungry. Also, since we moved here in March, we have seen FAR FEWER beggars or homeless people here than we saw in California. As commented above, those federal statistics don't take into account the underground economy. Nowhere on the mainland have I seen shopping centers as crowded as they are here. Many of the major chain stores have their most profitable stores right here in PR. -- Fran
@ Anon. and what he posted on Oct. 5th.
I agree with nearly everything you say....your right on point however, have you ever taken a look at those 1 dollar brooms ? WELL used. I've never seen a speck of dirt in any of the houses I've been in except my own. you could plant another El Yunque with that and fertilize it with the 9 million Satos.
@ Fran and Steve. yes the malls are packed with people buying overpriced gaudy clothing and leopard print tacos however unless you worked at a food bank in LA there is no way you saw more homeless people in CA then here
Hello blog readers,
Thank you all for your comments.
Kofla- I believe the whole controversy with the funding for the special communities organization is being investigated. Most of it has been mismanaged. Just to give you an idea, hundreds of thousands of dollars were allegedly used on posters.
Tanke, Fran & Steve- Indeed, Puerto Rico's underground economy is huge. Therefore, the economic data published does not paint an accurate picture. However, Puerto Rico would undoubtedly have the lowest per capita income if it were a state. The island's poverty rate far surpasses that of the mainland's.
@Dan: We live in Humacao (NOT Palmas) and since March, have seen exactly 2 apparently homeless men here and in our travels around the east side of the island. We don't get to San Juan much, but haven't seen any there. In Sacramento, CA, you can't go near strip malls, or the light rail, or downtown without encountering many homeless, and I'm not talking about run-down neighborhoods. Pan-handling is much less here, too. In PR, family are much more likely (than in CA) to take in a relative who has fallen on hard times. The statistics here are clearly flawed due to the underground nature of business, so I base my comments on anecdotal observances. -- Fran
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