How did Operation Bootstrap mean for Puerto Rico?

Operation Bootstrap was fundamentally about modernizing the Puerto Rican economy; because the government understood that this would only be possible through foreign investment, much of it involved providing tax exemptions to American corporations who set up shop in Puerto Rico.

When did Operation Bootstrap take place?

Governor Marin, with the help of the U.S. federal government, initiated Operation Bootstrap in 1944 in order to transform Puerto Rico into a developed, industrialist economy.

What were the incentives offered by the Puerto Rican government to attract US capital?

income tax, Puerto Rico further exempted qualifying corporations from all local taxes and license fees and provided subsidies for rent and labor training. The strategy was to attract U.S. investment by offering more than just marginal improvements in retained profits by reducing the opportunity cost of capital.

What is a major export of Puerto Rico today?

Puerto Rico main exports products are pharmaceuticals, accounting for over 50 percent of all exports. Others include medical equipment, computers, apparel, canned tuna, rum, beverage and concentrates. Puerto Rico’s main exports partner is the United States, accounting for around 70 percent of total exports.

Why was Operation Bootstrap bad?

Operation Bootstrap succeeded in creating industry in Puerto Rico. However, as industry increased, the labor workforce decreased. There were not enough jobs to replace those created by agriculture. This resulted in a mass migration of Puerto Ricans to the United States.

What are the pros and cons of bootstrapping?

The Pros and Cons of Bootstrapping

  • PRO: Greater Focus. Bootstrapping can also take out another pressure point of many startups which is having to impress investors to raise funding.
  • CON: Time.
  • PRO: Easier Pivoting.
  • CON: Lack of Investor support.
  • PRO: You don’t dilute your ownership.
  • CON: Personal risk.

Who qualifies for Puerto Rico Act 60?

1. You were present in the relevant territory for at least 183 days during the tax year. 2. You were present in the relevant territory for at least 549 days during the 3-year period that includes the current tax year and the 2 immediately preceding tax years.

How did Operation Bootstrap lead to mass migration?

What is bootstrapped funding?

Bootstrapping refers to the process of starting a company with only personal savings, including borrowed or invested funds from family or friends, as well as income from initial sales. Self-funded businesses do not rely on traditional financing methods, such as the support of investors, crowdfunding or bank loans.