AP Photo/Ramon Espinosa
A debate is raging in Puerto Rico over the gentrification led by an influx of wealthy Americans to the Caribbean archipelago, with many worrying that the newcomers are driving the gradual displacement of Puerto Ricans from their own land. It’s a debate that turns on complicated and contested issues involving housing markets, tax incentives, Airbnbs, and economic development.
But Puerto Rico being what it is —a U.S. colony— it also centers on a much deeper question: whether Puerto Rico is a nation and Puerto Ricans a people, or whether they’re merely the current tenants of a particularly attractive piece of real estate in America’s empire.
The public conversation on this issue was spurred by reporting by independent journalist Bianca Graulau about an apartment building in the small seaside town of Quebradillas that was purchased by a former Rhode Island state senator (and tax delinquent), Giovanni Feroce. His plan? To evict the building’s residents and turn it into a hotel or short-term rental property.
That’s the latest story, but far from the only one, as reporters and researchers have documented a series of worrying trends in recent years. Rampant luxury real estate development, often on environmentally protected land. A new crop of “crypto colonizers” and other so-called Act 22 investor-tax dodgers who, studies show, contribute little to the local economy. Logan Paul.
While the crypto bros and influencers enjoy the sun and sand, life keeps getting a little harder, and a lot more expensive, for many Puerto Ricans. The influx of Americans has spurred a 15 percent rise in housing prices and not-so-curiously coincides with a nearly 20 percent rate hike on their electricity bills. Plus the recovery from Hurricane María remains inadequate—Vieques and Culebra may boast a ton of Airbnbs, but they haven’t had a hospital since 2017.
Now, the latest blow: a debt adjustment plan written by the Washington-imposed fiscal control board and signed by U.S. Judge Laura Taylor Swain, which allows hedge funds to profit while preventing teachers from accruing pension benefits.
Individual bondholders & mutual funds who bought bonds at 100 cents/dollar will surely lose money. Savvy hedge funds who bought at discounts will profit. Accrued pension benefits are untouched, but current employees (mostly teachers) can’t earn any more. https://t.co/OG6MbDyuKV
— Andrew Scurria (@AndrewScurria) January 18, 2022
It all adds up to a profound feeling of powerlessness, frustration, and even rage for Puerto Ricans, who rightfully sense that the Americans moving to the island receive the red-carpet treatment while longtime residents are mired in mud.
And yet, what should elicit universal condemnation and concern has instead provoked a sort of backlash to the backlash over the influx of Americans, which runs the gamut from claiming the concerns are unfounded, to accusing Puerto Ricans of being racist and xenophobic against Americans.
Predictably, the spirited defense made by the investors, real estate magnates, and crypto enthusiasts has come largely from supporters of Puerto Rican statehood, some of whom are siding, not with the people, but with ultrawealthy tax cheats. Whatever concerns statehooders may have, as progressive as many claim to be, about white privilege, the gentrification in U.S. cities, or the corrosive influence of money in politics, seem to evaporate when it comes to Puerto Rico—where such concerns are needed most, as the political impotence of Puerto Rico’s colonial status makes the islands disproportionately vulnerable to such opportunism and exploitation.
This is unfortunate, but predictable. Statehooders are committed to the idea that any American influence and investment in Puerto Rico is essentially good, and that Californians or Rhode Islanders settling on the islands are merely coming, as they should, to live among their fellow Americans.
But what’s happening today in Puerto Rico belies the ideological fantasy at the heart of their push for annexation, inclusion, and assimilation.
Most Americans are not moving to Puerto Rico to build community with their Caribbean compatriots, but to take advantage of tax breaks, set up enclaves, and wield and expand their economic power. And many Puerto Ricans do not greet them as brothers from another mainland. They view them as 21st-century invaders who flaunt their massive wealth and privilege only a stone’s throw from where Boricuas struggle daily to make ends meet.
What’s happening in Puerto Rico also serves as a sneak preview of trends that would only accelerate if the colony were granted statehoood. The tax breaks might end —or they might not— but the prospect of year-round beaches and sunshine will remain. What’s to stop tens or hundreds of thousands of wealthy American retirees from buying winter homes or moving altogether to Puerto Rico, as they do now to warm-weather states like Arizona and Florida? And what’s to stop these disproportionately conservative, wealthy, white Americans from transforming Puerto Rican politics for the worse, as they have in those and other states? Even if their numbers remained small in absolute terms, each one would have the buying power of a dozen Puerto Ricans, with predictable consequences. And the 51st star on the American flag would not magically turn the gringos into good and thoughtful neighbors.
At the end of the day, the debate raging in Puerto Rico is about whether it makes a difference —not just economically, but culturally, politically, and morally— whether a Joe Smith or a José Sánchez gets to own a little slice of Puerto Rican paradise. the answer should be a resounding “Yes,” not out of a nativist rejection of foreigners, but as a bulwark against the social inequality exacerbated by colonialism and runaway capitalism, and as a way to protect what should be a sacred bond between a place and its people.
https://www.youtube.com/watch?v=qxnYzcL2ku8
The power of that bond was on full display last month when global megastar Bad Bunny kicked off his concerts in San Juan with an eight-minute video tribute to Puerto Rican identity. Tens of thousands stood and cheered as the sights and sounds of the island flashed across the screen and Benicio del Toro read the names and deeds of our cultural icons and national heroes.
Had the Americans now moving to Puerto Rico made up the bulk of the crowd, they might’ve stood there in silence. They wouldn’t have known what to cheer for, or why. And while that potential future may not yet be imminent, it’s getting easier to imagine every day.
Some will say that’s just fine as long as the Americans’ checks clear, that you can’t buy much with national pride or cultural identity. But for those of us who understand the value of being from “P FKN R” must remain vigilant, lest we wake up and find that they used those checks to buy things we shouldn’t have put a price on.
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Alberto Medina is a Puerto Rican writer and editor. He tweets from @AlbertoMedinaPR.
people from PR move to the states every day
do they buy million-dollar homes? if so can you show us where?
What infuriates me is that NOT ONCE in this article does the author mention that the influx of rich, white, Americans to Puerto Rico, due to the tax incentives known as Act 20/22 and now consolidated as Act 60, is the direct result of THE GOVERNMENT OF PUERTO RICO!!
The PNP created these incentives and contunues to support and grow them. Why don’t you talk about that?? Why don’t you protest your government?? You hate “gringo gentrification,” but you refuse to recognize the cause of your problem…….YOUR GOVERNMENT! Act 60 goes away, so do all of your worries! Who can get rid of Act 60? YOUR GOVERNMENT! Am I the only one who can see that?
Your position, along with the “gringo go home movement” and “abolish act 60” movement is all bark and no bite. Your too frightened to root out the real problem…..the laws created by the PR government…… so you take it out on the people who were invited here by Furtuno, Rosello and Pierluisi…. God….get a grip.
Sounds like a white gringo here getting all defensive. Can’t even write the names correctly.
Please accept my apologies for the spelling errors that I made; mea culpa, Rita. No, I’m not defensive at all; I’m simply trying to illustrate a point that the gentrification issue (which I agree is a very real situation) is a direct result of the tax incentives I mention in my comments from March. Those incentives were created by the PR government and can only be taken away by the PR government. So, I suppose I don’t understand why locals are more upset with the newly arrived gringos instead of with the government that rolled out the red carpet for them. I’m just looking for someone to address that for me. You can’t tell a greedy, money centric, US resident they can move to a tropical island, pay no taxes AND keep their US citizenship and expect them not to come! Who has the power to make that stop, Rita? I’m very interested in your opinion. If there were no tax incentives on the table and the gentrification was happening at the hands of the gringos, then I would fully understand the direct animosity toward the invader….. but that’s not the case here, Rita.
I will apologize ahead of time if I spelled something wrong, didn’t punctuate properly, missed a comma or period someplace, used a redundant, passive phrase, typed a run on sentance, had improper use of a prepositional phrase or just plain said something wrong. I’m not interested in hearing from the grammar police here or in someone throwing petty insults my way; I’m looking for an intelligent discussion on, or rebuttal of, my thoughts. Neither my most recent commentary, nor my remarks in March (which I admit were a bit terse) were intended to offend. I was simply trying to illustrate the point that spray painting “Gringo Go Home” on abandoned buildings, or insulting gentrifiers on a anti-gringo, Instagram page is not going to solve the problem. Only the PR government can solve this problem with the elimination of the tax incentives….OR by modifiying the tax incentives so they only target native Puerto Ricans (or their direct descendants) to entice them to come home or convince them to stay. The gringo gentrifiers are merely a SYMPTOM of the disease; treating the symptoms are not going to cure the disease…….
I AM very interested in hearing Rita’s opinion, or anyone else’s, on the arguments that I make and I will say it again, I’m not looking to offend anyone, I truly want to gain your perspective on what I have to say.
[…] island is a tax haven for rich People, the place individuals transfer to make the most of the once-cheap lease and land, guaranteeing that a lot of those that have all the time lived and labored in Puerto Rico […]
[…] Rico speak about their experiences. The island is a tax haven for wealthy Americans, where people move to take advantage of the once-cheap rent and land, guaranteeing that many of those who have always lived and worked in Puerto Rico will be […]
Yes, it’s absolutely true that these corrupt governors of Puerto Rico are responsible for many programs that have decentralized gov’t and intensified inequities on the island. Still, Puerto Rico is a « colony » of the USA and the hypocrisy of American democracy is most intense on the island. The reason Latin American history is kept off the general school curriculum is because it would be very confusing for young people to understand how the USA supported many dictators and continues to colonize and reap the wealth from the powerless. So, it’s not so simple for locals to fight back. PR has a history of suppression and coersion. Read about what happened in the 1950’s there. It is indeed sad to see and continue to see how the USA underdevelops Puerto Rico; the pharmaceuticals, cryto warriors, the military, Monsato, the former Secretary of Education who was imprisoned for corruption ( btw- she shut down 250 public schools). Consider the low literacy rates, high percentage of imported agricultural products….Yes, it was the PR govt in close collaboration with Washington. It wasn’t until the 1950’s that PR had its first spanish speaking governor….. so the USA should first address all of its colonial racist, capitalist shit in its own backyard before it starts pouring tax funds and military onto issues abroad. And those moving to the island should study the history of the island- education breeds more compassion and understanding.
A couple of thoughts on this. 1) There are 14 million Puerto Ricans living on the mainland and building a better life for themselves because the economy and situation in Puerto Rico has been stagnant for a long time (look at how surrounding Caribbean nations fare without support from a larger nation or tax/golden passport incentives), 2) There are not that many gringos moving down for the tax benefits (less than 3000 so far after all these years) and the ones that do are competing with WEALTHY Puerto Ricans for housing, in fact, they are buying houses and luxury condos from Puerto Rican owners at highly inflated values (aka good for the Puerto Ricans selling). The only people who are negatively affected by this are renters in a select few desirable areas (Dorado, Condado, Rincon etc) and this happens in every city on Earth worth living in. 3) Puerto Rican business owners, service businesses, etc love the gringos because they are stimulating the economy. More restaurants are opening up and many new high rises and hotel renovations are in the works. This is progress! They are breathing life back into the island and making it easier for Puerto Ricans to find employment and opportunity on their home island vs going to the US. 4) Higher prices in many goods and services can better be attributed to inflation and global market dynamics and not to gentrification.