Dan Gilmore / July 2, 2015

Top-Down Economic Regulation Burdened Puerto Rico

Like the rest of the nation, Puerto Rico has the $7.25 minimum wage. But it’s that regulation, along with a host of other federally mandated economic rules, which has helped sink the island commonwealth into a $72 billion hole of debt. Despite what the advocates for a $15-an-hour minimum wage might say, a $7.25 minimum wage works fairly well for most of the U.S., where 16% of workers earn the minimum wage. But in places like Puerto Rico or American Samoa, $7.25 is too much, as the income and worker productivity is different. In U.S. territories in the Pacific, the minimum wage was kept around $4.50 in order to keep the jobs on the islands. Not only wage laws, but the Jones Act hurts the Puerto Rican economy. It’s a law that restricts the kinds of ships sailing into Puerto Rican ports, keeps competition low and prices high. Furthermore, the commonwealth has a welfare system that pays out much more to more people than the system in the states. High government-mandated minimum wage, stifling economic regulations, gratuitous welfare — as Arturo Porzecanski, who teaches international economics at American University, said, “They have all the traits of a welfare state gone wrong.”

Start a conversation using these share links:

Who We Are

The Patriot Post is a highly acclaimed weekday digest of news analysis, policy and opinion written from the heartland — as opposed to the MSM’s ubiquitous Beltway echo chambers — for grassroots leaders nationwide. More

What We Offer

On the Web

We provide solid conservative perspective on the most important issues, including analysis, opinion columns, headline summaries, memes, cartoons and much more.

Via Email

Choose our full-length Digest or our quick-reading Snapshot for a summary of important news. We also offer Cartoons & Memes on Monday and Alexander’s column on Wednesday.

Our Mission

The Patriot Post is steadfast in our mission to extend the endowment of Liberty to the next generation by advocating for individual rights and responsibilities, supporting the restoration of constitutional limits on government and the judiciary, and promoting free enterprise, national defense and traditional American values. We are a rock-solid conservative touchstone for the expanding ranks of grassroots Americans Patriots from all walks of life. Our mission and operation budgets are not financed by any political or special interest groups, and to protect our editorial integrity, we accept no advertising. We are sustained solely by you. Please support The Patriot Fund today!


“Our cause is noble; it is the cause of mankind!” —George Washington

The Patriot Post is protected speech, as enumerated in the First Amendment and enforced by the Second Amendment of the Constitution of the United States of America, in accordance with the endowed and unalienable Rights of All Mankind.

Copyright © 2022 The Patriot Post. All Rights Reserved.

The Patriot Post does not support Internet Explorer. We recommend installing the latest version of Microsoft Edge, Mozilla Firefox, or Google Chrome.