Economist José Alameda, a professor at the University of Puerto Rico in Mayagüez, said on NotiUno 630’s program En Caliente con la Jovet that without food stamps (cupones), Social Security and other federal transfers, Puerto Rico’s economy "would have exploded a long time ago." He said the island’s economy has shown dwindling growth, zero or negative, in recent years, and that federal funds arriving after hurricanes Irma, María and Fiona, the earthquakes and the pandemic have been the only thing sustaining consumption.
Commenting on the US midterm election results, Alameda said "the economy took its toll, and the war too," explaining that wars are financed largely with debt and that US conflicts, including the Gulf wars, affect international oil prices. He cited a study, Puerto Rico Silver Economy, comparing the island with the states, which finds Puerto Rico has a higher proportion of disabled people receiving Social Security, and noted the population is aging and older people find it harder to leave the country.
Alameda said Puerto Rico has been "a slave to three things," including oil and debt: the electric system has burned oil or its derivatives since 1978 and still burns diesel, the most expensive fuel. He said total debt surpassed the Gross Product around 2006-2007, and that since the Oversight Board arrived "we are still in the calvary of debt payment."
He called the island’s governance "exaggerately bad," said the economy must be restructured, and noted the Board has gathered economists in the last two or three years, including Leslie Adams of Estudios Técnicos and Dr. Indira Luciano. "What we need is how we get out of this quagmire," he said.