Puerto Rico

Puerto Rico is a Caribbean island and unincorporated U.S. territory

In 1917, the U.S. Congress passed the Jones-Shafroth Act, popularly called the Jones Act, which granted Puerto Ricans U.S. citizenship

The same Act provided for a popularly elected Senate to complete a bicameral Legislative Assembly, as well as a  Bill of Rights
It authorized the popular election of the Resident Commissioner to a four-year term.

In 1947, the U.S. granted Puerto Ricans the right to democratically elect their own  Governor and in 1948, Luis Munoz Marin became the first popularly elected governor of Puerto Rico

In 1950, the U.S. Congress approved Public Law 600 (P.L. 81-600), which allowed for a democratic Referendum in Puerto Rico to determine whether Puerto Ricans desired to draft their own local constitution

The Puerto Rico Constitution was approved by a Constitutional Convention on February 6, 1952, and 82% of the voters in a March referendum. It was modified and ratified by the U.S. Congress, approved by President Truman on July 3 of that year, and proclaimed by Gov. Muñoz Marín on July 25, 1952

Since 2007, the Puerto Rico State Department has developed a protocol to issue certificates of Puerto Rican citizenship to Puerto Ricans. In order to be eligible, applicants must have been born in Puerto Rico; born outside of Puerto Rico to a Puerto Rican–born parent; or be an American citizen with at least one year residence in Puerto Rico

Puerto Rico is an Archipelago that includes the main island of Puerto Rico and a number of smaller islands with a population of 3.5 Million

The Commonwealth of Puerto Rico has an area of 13,790 square kilometers (5,320 sq mi), of which 8,870 km² (3,420 sq mi) is land and 4,921 km² (1,900 sq mi) is water

Puerto Rico has 8 Senatorial Districts;40epresentative Districts and 78 Minicipalities

The government of Puerto Rico is composed of 3 branches -
Executive headed by the Governor
Legislative comprising 27 Senators and 51 Representatives
Juidiciary

The Puerto Rico crisis

Puerto Rico has more than $72 billion of debt — nearly 100 % of its total annual economic output — and an estimated $30 billion shortfall in its state pension fund.

Two government agencies have already defaulted on debts, and a $2 billion payment is due on July 01,2016

There's no way the territory will make it. Unemployment is over 12 % and would be twice as high if so many Puerto Ricans hadn't taken advantage of their U.S. citizenship and moved to the mainland to find work.

The poverty rate is 45 %, compared with 15 % stateside, and half of P.R. residents are on Medicaid. "We have no cash left," Gov. Alejandro Padilla said in a December appeal for help to the U.S. Senate. "This is a distress call from 3.5 million Americans who have been lost at sea." It's not just Puerto Ricans at risk of suffering: Two-thirds of U.S. pension and retirement funds hold Puerto Rico government and municipal bonds, and could lose billions of dollars if the island can't service its debts

For decades, Puerto Rico issued bonds to cover budget shortfalls, and investors snapped them up because the bonds are exempt from federal, state, and local taxes in all 50 states

In 1996 the territory hit an economic crossroads. Congress ended hefty tax breaks for U.S. manufacturers operating in Puerto Rico, and American firms began shuttering their operations on the island, causing the economy to slump.

Instead of restructuring its economy, Puerto Rico doubled its debt over the next 10 years, and Wall Street firms made nearly $1 billion off the fees. Those bond sales let the territory's bloated government — which employs a quarter of the workforce — meet its budgets without laying people off. But the economy remained stagnant, and the government was soon overwhelmed by its vast debt obligations.

Puerto Ricans with means and education are fleeing for the mainland. The island has lost some 440,000 people in the past decade, with about 1,200 decamping every week in 2014

Many have moved to Florida, which could make that state's demographics more favorable for Democrats in November's presidential election. (Puerto Ricans can't vote for president if they live on the island, but can if they move to a U.S. state.) 

Those who stay face ever-higher bills: The sales tax rose last year from 7 to 11.5 percent — the highest in the country — and water and electricity rates have spiked. The foreclosure rate is soaring