Friday, December 25, 2015

PR Population Declines

We have written about the economic troubles of Puerto Rico, search for it if you're interested. Now comes a story from Fox News about the population decline the island has suffered, some 9% since 2004.

PR has been handed an economic lemon, it's time to make "lemonade." Local people leaving PR creates an opportunity for the island economy's rebirth. Basically, PR needs to reinvent itself as a tourist paradise, like Hawaii. 

A population decline should depress housing prices. Lower housing prices will create opportunities for retirees from the northern 49 to buy an affordable place in the sun under the protection of the U.S. flag

Retirees bring money but cause few problems, commit few crimes, need few schools. They spend on food, fuel, autos, clothing, and health care. They patronize restaurants, barbers and beauticians, they tend to pay their taxes and utility bills on time. 

There are downsides of this future. Cultural dilution is a real risk, perhaps loss of Spanish language dominance, and the proliferation of service jobs which are often low-paying.