Should Rebuilding Puerto Rico be given equal priority compared with Iraq and Afghanistan?

The images coming from  Puerto Rico, America’s largest Territory, of the widespread devastation by Hurricane Maria and widespread human suffering have been shocking. Today, thousands of families have lost their homes and almost 3.5 million US Citizens are without running water, electricity and telephone service.  Government officials predict it will take months to recover and get the lights back on.

In the next couple of weeks Congress and the Administration will be making decisions on the level of funding that should be provided to address the immediate needs of disaster assistance and the rebuilding of critical  infrastructure.  It is suggested this will total into the billions but some question how much should really be made available.

Since 2001, American taxpayers have spent over $160 billion dollars to rebuild Iraq and Afghanistan.  It's fair to ask if Puerto Rico and its 3.5 million US Citizens are less of a priority than the peoples of Iraq and Afghanistan?

As a US Territory, Puerto Rico’ has had its economy subject to Federal Policy since WW1 and when 90 years of Federal tax policy was ended the economy went into a tailspin and has since contracted by almost 16% causing over 500,000 to leave the island for elsewhere. Even today the US manufacturers  who were attracted to the island generate ? of its GDP.   Now due to the devastation of the island many more locals will leave with  the economy at a standstill and a difficult path ahead.

Congress can give priority to Puerto Rico’s US Citizens by stabilizing its health care system and preventing the impending Medicaid Cliff created by the ACA in the Hurricane Relief package.  Otherwise, the Medicaid Cliff created will cost the island 80% of its Federal Medicaid funding as early as February, 2018; just a few months from now. Without quality health care, it's hard to recruit and retain employees; especially those with Families.

The government run power Authority, PREPA, has suffered terrible damage and it's projected to require  many months to get the lights on.  Congress can also act to ensure that the government electricity monopoly responsible for historically having the highest rates in the US is replaced by a modern electrical sector utilizing renewables with independent generation forcing competition between several private providers in order to keep keep costs down.  And frankly, we recognize that private companies can be up and running much faster than the government’s monopoly..

Tax reform can contribute to ensuring that Puerto Rico’s manufacturing sector remains vibrant and growing by creating  a competitive differential against its foreign competitors in the region.  Let’s not forget that Congress created a special enterprise zone for the District of Columbia back in the 1990’s as a key component of its strategy to bring DC back from the brink of financial collapse.  Everyone today can witness the results of that strategy as we see thousands of new residents moving in DC each year.

Economic growth will be the only true long term solution to Puerto Rico’s challenges that lie ahead.  The sooner these important steps are taken, the better for all Americans.