November 2014: Myths and Truths on PR’s Current Cycle

Puerto Rico’s Great Recession, as is the case with any complex phenomena, is not without its own myths. For example, the prevailing wisdom is that those with college degrees have driven the recent loss of population in PR or that US economic growth will somehow induce growth at home. Moreover, a careful look at the evidence shows that our traditional economic thinking is simply no longer applicable to the Island’s current economic reality. This issue of PR Economic Pulse aims to counter several of the myths regarding PR’s present cycle, many of which have even created media headlines. We also provide a fresh look into once firmly rooted economic orthodoxy and offer some insight as to the relevance of such rationale for our present troubles. Now, more than ever, an honest and careful examination of our economy’s current economic fundamentals is needed if we want to permanently reverse our current course.