Puerto Rico Statehood free essay sample

Puerto Rico Statehood Composition 2 (11 am) Decmeber-02-2010 Formal Outline Topic: Puerto Rico Statehood Purpose: To encourage the US and Puerto Rican government to for more interest for Puerto Rico statehood. Thesis: As an American I feel our government needs to make more progress, and give more encouragement to Puerto Rico to become a state though education, and social learning. Introduction: Body: I Economics: A: Underemployment B: Taxes Incentives C: Effects on the economy II Political: A: US citizenship. B: National security. C: They will have more of voice. III Education and Social: A: More education for Puerto Rico B: Cultural effects C: language. Conclusion: Puerto Rico Statehood The US territory Puerto Rico has been a territory of the United States for over 108 years; that’s longer than any state or territory in American history for waiting for statehood. Puerto Rico has been big part of our history ever since the start of our great nation. For 108 years they have enjoyed and contributed to the projection of the United States and financial support of their island, but instead we exploit them with low wage labor, tax benefits to big corporations, and no education support to them. Puerto Rico has always been patriotic for the United States and as nation, to not make them a state can be classified as economic terrorism/ exploitation. Today there is big debate in Puerto Rico, should they become a state or stay as territory, or even become an independent nation? In a poll in 1998 47% of Puerto Ricans were in favor for statehood, and 50% were favor for continuing US territory status, the remaining 3% were in favor for independence (Schaefer, 2010). If we make Puerto Rico state our country will have a greater economic benefit and growth as a nation. Not only will Puerto Rico see economic growth they will be more educated, have more skilled labor work force, and our country will not have to be spending $22 billion on the territory each year. As an American I feel our government needs to make more progress, and give more encouragement to Puerto Rico to become a state though education, and social learning. Economic Issues Involved The unemployment rate in Puerto Rico is at 16% percent, which is 6. 4 percent higher than the United States’ national average (NCSL, 2010). This is not a surprising number considering that the fact our country in a recession and our unemployment has never been higher in the past 28 years (Data, 2010). Then again, if we look at the unemployment rate in 2006, their numbers were almost the same at 15. 7%, when ours were at 6. 4% which was three times higher compared to the national average (Schaefer, 2010). As the United States is facing a high unemployment rate the concern for many Americans and elected officials is by making Puerto Rico a state will have negative effects on the unemployment rate on the US. The unemployment rate will go up on the national average, but surprisingly it will not have big effect on national average because it will go up by a small margin, and it will not force Americans to compete jobs with Puerto Rico with the adding of their unemployment to ours. The advantage for Puerto Rico becoming a state is their unemployment rate will go down in the long run, because it will allow an increase to the tourist industry for Puerto Rico. The reason for the growth in their tourist industry will be when they become a state more people will be inclined to visit there compared to Hawaii, Florida, and any other Caribbean Islands in the area. With more people visiting there will be a need for more hotels, restaurants, and other tourist services. With this growth there will be opportunities for Puerto Ricans to start and own business, and have more access to more government programs to lower their unemployment rate in which something they have been denied because of their political status. Talking with T, David (personal communication, November 10th, 2010). Due to their political status as a United States territory has cost Puerto Rico lost opportunities to lower their unemployment rate. The opportunities which are available to every unemployed worker in the United States are training programs, health insurance assistance, and food and emergency aid. With these programs available to the unemployed in the United States, it is helping put America back to work, and giving people the opportunity to go back school to be retrained in a new field of work which they didn’t have the chance to do in the past. Since Puerto Rico isn’t a state they don’t have these programs that assist the unemployed to help them get back to work, in turn it’s causing a big problem for their economy. The biggest problem for Puerto Rico’s economy is the tax incentives for big corporations that establish operations in Puerto Rico. One of the advantages for a corporation to operate in Puerto Rico is that they can claim their profits and wages paid up to 60 percent for tax credits, in which does cost the United States and Puerto Rico billions of dollars each year in tax revenue (U. S. Census, 2003). These tax breaks they receive do not benefit the local economy; they go elsewhere. As a result of this and other factors, the United States’ total spending is $22 Billion dollars each year for federal funds to stimulate the Puerto Rican economy (Schaefer, 2010). The unique tax benefits Puerto Rico offers to corporations to establish operations on their island are very attractive to companies who want to increase their profits.