The Battle for Paradise

I have a complicated relationship with Puerto Rico. I'm ethnically Puerto Rican but I don't look it, never had a good grasp of the language, and have only visited once. I simultaneously want to have it be a bigger part of my identity and don't feel like I deserve to. But the least I could do is stay informed on what's going on down there.

This book was a pretty specific snapshot of 2018, just one year after Hurricane Maria, and what conditions on the ground were like. And I guess there's value in knowing what things were like in a pivotal time like that, but I almost feel like it was written too early? It sets up a ton of different directions the local economy, government, and culture could go in the post-disaster aftermath, and suggests that any change would be made quickly. So a part of me feels like only five years out, this book is probably already outdated? But I don't typically read contemporary nonfiction, so maybe that just comes with the territory for this kind of book.

Anyway it paints a pretty bleak picture for local autonomy and I feel more justified than ever in saying: fuck cryptobros.

We knew that the real disaster was not the hurricane but the terrible vulnerability imposed by Puerto Rico’s colonial relationship to the United States, as well as the forced privatization of health and other services; massive layoffs; huge numbers of school closures; reductions in social rights and in investments for collective well-being; abandonment of social and physical infrastructure; and high levels of government corruption and ineptitude. This vulnerability was aggravated by Washington’s imposition of the Financial Oversight and Management Board, an unelected body pushing for the privatization of electricity and schools, increased costs of basic services, massive cuts in public education, pensions, vacation time, and other rights—all in order to pay bondholders a $73 billion debt that was patently unpayable, illegal, and illegitimate. The net result was to leave the majority of people in Puerto Rico without a hopeful future, and that was all before Hurricane Maria hit our shores.

There are few persons alive today who has the voice, breadth, and prosaic succinctness that Klein has. Her ability to paint a picture, to show what's wrong, and how we can get to a better place, is like a breath of fresh air, a younger version of Noam Chomsky and Howard Zinn. I'm glad to know she is alive and kicking today.

And kicking she is. Puerto Rico has been smashed by neoliberal powers prior to Hurricane Maria, that left the island devastated.

Researchers at Harvard recently revealed the death toll from Hurricane Maria may be a staggering 70 times higher than the official count. The official death toll still stands at 64, but the new study estimates a death toll of at least 4,645, with some projections topping 5,700. The Harvard study found that “interruption of medical care was the primary cause of sustained high mortality rates in the months after the hurricane, a finding consistent with the widely reported disruption of health systems. Healthcare disruption is now a growing contributor to both morbidity and mortality in natural disasters.”

As noted, part of Klein's strength as a writer is to show how human beings are prone to help each other, and how; where corporations and kleptocracies fail us, we get by:

Several Puerto Ricans I spoke with casually referred to Maria as “our teacher.” Because amid the storm’s convulsions, people didn’t just discover what didn’t work (pretty much everything). They also learned very quickly about a few things that worked surprisingly well. Up in Adjuntas, it was solar power. Elsewhere, it was small organic farms that used traditional farming methods that were better able to stand up to the floods and wind. And in every case, deep community relationships, as well as strong ties to the Puerto Rican diaspora, successfully delivered lifesaving aid when the government failed and failed again.

It's interesting to see how Puerto Rico is basically being used as a sieve for the wealthy who seek to avoid paying their taxes. Here's a telling sign from the book:

Earlier this month, in San Juan’s ornate Condado Vanderbilt Hotel, the dream of Puerto Rico as a for-profit utopia was on full display. From March 14 to 16, the hotel played host to Puerto Crypto, a three-day “immersive” pitch for blockchain and cryptocurrencies with a special focus on why Puerto Rico will “be the epicenter of this multitrillion-dollar market.” Among the speakers was Yaron Brook, chair of the Ayn Rand Institute, who presented on “How Deregulation and Blockchain Can Make Puerto Rico the Hong Kong of the Caribbean.” Last year, Brook announced that he had personally relocated from California to Puerto Rico, where he claims he went from paying 55 percent of his income in taxes to less than 4 percent. Elsewhere on the island, hundreds of thousands of Puerto Ricans were still living by flashlight, many were still dependent on FEMA for food aid, and the island’s main mental health hotline was still overwhelmed with callers. But inside the sold-out Vanderbilt conference, there was little space for that kind of downer news. Instead, the 800 attendees—fresh from a choice between “sunrise yoga and meditation” and “morning surf”—heard from top officials like Department of Economic Development and Commerce Secretary Manuel Laboy Rivera about all the things Puerto Rico is doing to turn itself into the ultimate playground for newly minted cryptocurrency millionaires and billionaires.

The official slogan of this new Puerto Rico? “Paradise Performs.” To underscore the point, conference attendees were invited to a “Cryptocurrency Honey Party,” with pollen-themed drinks and snacks, and a chance to hang out with Ingrid Suarez, Miss Teen Panama 2013 and upcoming contestant on “Caribbean’s Next Top Model.”

But make no mistake—the true religion here is tax avoidance. As one young crypto-trader recently told his YouTube audience, before moving to Puerto Rico in time to make the tax-filing deadline, “I had to actually look it up on the map.” (He subsequently admitted to some “culture shock” upon learning that Puerto Ricans spoke Spanish, but instructed viewers thinking of following his lead to put a “Google translator app on your phone and you’re good to go.”)

In early 2018, Governor Ricardo Rosselló announced the privatisation of PREPA, the Puerto Rico Electric Power Authority. "Two days later, the slick, TV-friendly young governor unveiled his long-awaited “fiscal plan,” which included closing more than 300 schools and shutting down more than two-thirds of the island government’s executive-branch entities, going from a total of 115 to just 35."

The major preamble to his statement? Check this:

Broke and desperate, the Puerto Rican government turned to borrowing, in part by using its special tax status to issue municipal bonds that were exempt from city, state, and federal taxes. It also purchased high-risk capital appreciation bonds, which will eventually rack up interest rates ranging from 785 to 1,000 percent. Thanks in large part to these kinds of predatory financial instruments, borrowed under conditions that many experts argue were illegal under the Puerto Rican Constitution, the island’s debt exploded. According to data compiled by lawyer Armando Pintado, debt-service payments, including interest and other profits paid to the banking industry, increased fivefold between 2001 and 2014, with a particularly marked spike in 2008. Yet another shock to the island’s economy.

No matter what the outcome of this is, it is vital that we all not only react, but act.

With books like this, we can make haste.

We knew that the real disaster was not the hurricane but the terrible vulnerability imposed by Puerto Rico’s colonial relationship to the United States, as well as the forced privatization of health and other services; massive layoffs; huge numbers of school closures; reductions in social rights and in investments for collective well-being; abandonment of social and physical infrastructure; and high levels of government corruption and ineptitude. This vulnerability was aggravated by Washington’s imposition of the Financial Oversight and Management Board, an unelected body pushing for the privatization of electricity and schools, increased costs of basic services, massive cuts in public education, pensions, vacation time, and other rights—all in order to pay bondholders a $73 billion debt that was patently unpayable, illegal, and illegitimate. The net result was to leave the majority of people in Puerto Rico without a hopeful future, and that was all before Hurricane Maria hit our shores.

There are few persons alive today who has the voice, breadth, and prosaic succinctness that Klein has. Her ability to paint a picture, to show what's wrong, and how we can get to a better place, is like a breath of fresh air, a younger version of Noam Chomsky and Howard Zinn. I'm glad to know she is alive and kicking today.And kicking she is. Puerto Rico has been smashed by neoliberal powers prior to Hurricane Maria, that left the island devastated.Researchers at Harvard recently revealed the death toll from Hurricane Maria may be a staggering 70 times higher than the official count. The official death toll still stands at 64, but the new study estimates a death toll of at least 4,645, with some projections topping 5,700. The Harvard study found that “interruption of medical care was the primary cause of sustained high mortality rates in the months after the hurricane, a finding consistent with the widely reported disruption of health systems. Healthcare disruption is now a growing contributor to both morbidity and mortality in natural disasters.”As noted, part of Klein's strength as a writer is to show how human beings are prone to help each other, and how; where corporations and kleptocracies fail us, we get by:

Several Puerto Ricans I spoke with casually referred to Maria as “our teacher.” Because amid the storm’s convulsions, people didn’t just discover what didn’t work (pretty much everything). They also learned very quickly about a few things that worked surprisingly well. Up in Adjuntas, it was solar power. Elsewhere, it was small organic farms that used traditional farming methods that were better able to stand up to the floods and wind. And in every case, deep community relationships, as well as strong ties to the Puerto Rican diaspora, successfully delivered lifesaving aid when the government failed and failed again.

It's interesting to see how Puerto Rico is basically being used as a sieve for the wealthy who seek to avoid paying their taxes. Here's a telling sign from the book:

Earlier this month, in San Juan’s ornate Condado Vanderbilt Hotel, the dream of Puerto Rico as a for-profit utopia was on full display. From March 14 to 16, the hotel played host to Puerto Crypto, a three-day “immersive” pitch for blockchain and cryptocurrencies with a special focus on why Puerto Rico will “be the epicenter of this multitrillion-dollar market.” Among the speakers was Yaron Brook, chair of the Ayn Rand Institute, who presented on “How Deregulation and Blockchain Can Make Puerto Rico the Hong Kong of the Caribbean.” Last year, Brook announced that he had personally relocated from California to Puerto Rico, where he claims he went from paying 55 percent of his income in taxes to less than 4 percent. Elsewhere on the island, hundreds of thousands of Puerto Ricans were still living by flashlight, many were still dependent on FEMA for food aid, and the island’s main mental health hotline was still overwhelmed with callers. But inside the sold-out Vanderbilt conference, there was little space for that kind of downer news. Instead, the 800 attendees—fresh from a choice between “sunrise yoga and meditation” and “morning surf”—heard from top officials like Department of Economic Development and Commerce Secretary Manuel Laboy Rivera about all the things Puerto Rico is doing to turn itself into the ultimate playground for newly minted cryptocurrency millionaires and billionaires.

The official slogan of this new Puerto Rico? “Paradise Performs.” To underscore the point, conference attendees were invited to a “Cryptocurrency Honey Party,” with pollen-themed drinks and snacks, and a chance to hang out with Ingrid Suarez, Miss Teen Panama 2013 and upcoming contestant on “Caribbean’s Next Top Model.”

But make no mistake—the true religion here is tax avoidance. As one young crypto-trader recently told his YouTube audience, before moving to Puerto Rico in time to make the tax-filing deadline, “I had to actually look it up on the map.” (He subsequently admitted to some “culture shock” upon learning that Puerto Ricans spoke Spanish, but instructed viewers thinking of following his lead to put a “Google translator app on your phone and you’re good to go.”)

In early 2018, Governor Ricardo Rosselló announced the privatisation of PREPA, the Puerto Rico Electric Power Authority. "Two days later, the slick, TV-friendly young governor unveiled his long-awaited “fiscal plan,” which included closing more than 300 schools and shutting down more than two-thirds of the island government’s executive-branch entities, going from a total of 115 to just 35."The major preamble to his statement? Check this:

Broke and desperate, the Puerto Rican government turned to borrowing, in part by using its special tax status to issue municipal bonds that were exempt from city, state, and federal taxes. It also purchased high-risk capital appreciation bonds, which will eventually rack up interest rates ranging from 785 to 1,000 percent. Thanks in large part to these kinds of predatory financial instruments, borrowed under conditions that many experts argue were illegal under the Puerto Rican Constitution, the island’s debt exploded. According to data compiled by lawyer Armando Pintado, debt-service payments, including interest and other profits paid to the banking industry, increased fivefold between 2001 and 2014, with a particularly marked spike in 2008. Yet another shock to the island’s economy.

No matter what the outcome of this is, it is vital that we all not only react, but act.With books like this, we can make haste.

We knew that the real disaster was not the hurricane but the terrible vulnerability imposed by Puerto Rico’s colonial relationship to the United States, as well as the forced privatization of health and other services; massive layoffs; huge numbers of school closures; reductions in social rights and in investments for collective well-being; abandonment of social and physical infrastructure; and high levels of government corruption and ineptitude. This vulnerability was aggravated by Washington’s imposition of the Financial Oversight and Management Board, an unelected body pushing for the privatization of electricity and schools, increased costs of basic services, massive cuts in public education, pensions, vacation time, and other rights—all in order to pay bondholders a $73 billion debt that was patently unpayable, illegal, and illegitimate. The net result was to leave the majority of people in Puerto Rico without a hopeful future, and that was all before Hurricane Maria hit our shores.

There are few persons alive today who has the voice, breadth, and prosaic succinctness that Klein has. Her ability to paint a picture, to show what's wrong, and how we can get to a better place, is like a breath of fresh air, a younger version of Noam Chomsky and Howard Zinn. I'm glad to know she is alive and kicking today.And kicking she is. Puerto Rico has been smashed by neoliberal powers prior to Hurricane Maria, that left the island devastated.Researchers at Harvard recently revealed the death toll from Hurricane Maria may be a staggering 70 times higher than the official count. The official death toll still stands at 64, but the new study estimates a death toll of at least 4,645, with some projections topping 5,700. The Harvard study found that “interruption of medical care was the primary cause of sustained high mortality rates in the months after the hurricane, a finding consistent with the widely reported disruption of health systems. Healthcare disruption is now a growing contributor to both morbidity and mortality in natural disasters.”As noted, part of Klein's strength as a writer is to show how human beings are prone to help each other, and how; where corporations and kleptocracies fail us, we get by:

Several Puerto Ricans I spoke with casually referred to Maria as “our teacher.” Because amid the storm’s convulsions, people didn’t just discover what didn’t work (pretty much everything). They also learned very quickly about a few things that worked surprisingly well. Up in Adjuntas, it was solar power. Elsewhere, it was small organic farms that used traditional farming methods that were better able to stand up to the floods and wind. And in every case, deep community relationships, as well as strong ties to the Puerto Rican diaspora, successfully delivered lifesaving aid when the government failed and failed again.

It's interesting to see how Puerto Rico is basically being used as a sieve for the wealthy who seek to avoid paying their taxes. Here's a telling sign from the book:

Earlier this month, in San Juan’s ornate Condado Vanderbilt Hotel, the dream of Puerto Rico as a for-profit utopia was on full display. From March 14 to 16, the hotel played host to Puerto Crypto, a three-day “immersive” pitch for blockchain and cryptocurrencies with a special focus on why Puerto Rico will “be the epicenter of this multitrillion-dollar market.” Among the speakers was Yaron Brook, chair of the Ayn Rand Institute, who presented on “How Deregulation and Blockchain Can Make Puerto Rico the Hong Kong of the Caribbean.” Last year, Brook announced that he had personally relocated from California to Puerto Rico, where he claims he went from paying 55 percent of his income in taxes to less than 4 percent. Elsewhere on the island, hundreds of thousands of Puerto Ricans were still living by flashlight, many were still dependent on FEMA for food aid, and the island’s main mental health hotline was still overwhelmed with callers. But inside the sold-out Vanderbilt conference, there was little space for that kind of downer news. Instead, the 800 attendees—fresh from a choice between “sunrise yoga and meditation” and “morning surf”—heard from top officials like Department of Economic Development and Commerce Secretary Manuel Laboy Rivera about all the things Puerto Rico is doing to turn itself into the ultimate playground for newly minted cryptocurrency millionaires and billionaires.

The official slogan of this new Puerto Rico? “Paradise Performs.” To underscore the point, conference attendees were invited to a “Cryptocurrency Honey Party,” with pollen-themed drinks and snacks, and a chance to hang out with Ingrid Suarez, Miss Teen Panama 2013 and upcoming contestant on “Caribbean’s Next Top Model.”

But make no mistake—the true religion here is tax avoidance. As one young crypto-trader recently told his YouTube audience, before moving to Puerto Rico in time to make the tax-filing deadline, “I had to actually look it up on the map.” (He subsequently admitted to some “culture shock” upon learning that Puerto Ricans spoke Spanish, but instructed viewers thinking of following his lead to put a “Google translator app on your phone and you’re good to go.”)

In early 2018, Governor Ricardo Rosselló announced the privatisation of PREPA, the Puerto Rico Electric Power Authority. "Two days later, the slick, TV-friendly young governor unveiled his long-awaited “fiscal plan,” which included closing more than 300 schools and shutting down more than two-thirds of the island government’s executive-branch entities, going from a total of 115 to just 35."The major preamble to his statement? Check this:

Broke and desperate, the Puerto Rican government turned to borrowing, in part by using its special tax status to issue municipal bonds that were exempt from city, state, and federal taxes. It also purchased high-risk capital appreciation bonds, which will eventually rack up interest rates ranging from 785 to 1,000 percent. Thanks in large part to these kinds of predatory financial instruments, borrowed under conditions that many experts argue were illegal under the Puerto Rican Constitution, the island’s debt exploded. According to data compiled by lawyer Armando Pintado, debt-service payments, including interest and other profits paid to the banking industry, increased fivefold between 2001 and 2014, with a particularly marked spike in 2008. Yet another shock to the island’s economy.

No matter what the outcome of this is, it is vital that we all not only react, but act.With books like this, we can make haste.