Puerto Rico gave hundreds of millions of dollars in subsidies to
multinational GMO companies, while closing public schools due to
debts.
The motive for these subsidies, I suppose, was to get the companies to
operate there rather than elsewhere. That is the usual claimed
motive. In the small, it seems rational: one locality gets more
business. However, when this is practiced everywhere, the gain is to
the companies at the expense of the public. Each time a business can
play one locality against another, the business gains and both
localities lose.
States, and territories such as Puerto Rico, should not be allowed to
subsidize businesses (or give them special tax deals) to try to draw
their operations away from other localities.
I've suggested that the states should unionize to present a united
front against these exploitative businesses. There union could be
called the United States of America.
Puerto Rico has become a tool for tax dodging by "American"
multinationals such as Microsoft.