The Colonial Roots of Puerto Rico’s Debt Crisis: A Conversation on Island Territories
Recent headlines put Puerto Rico in the spotlight once again—but for all the wrong reasons. Comedian Tony Hinchcliffe’s recent remark at a political rally at Madison Square Garden, referring to Puerto Rico as “a floating island of garbage,” has sparked outrage across political divides. While the backlash was swift, it underscores a deeper issue: the widespread misunderstandings and dismissive attitudes toward Puerto Rico’s cultural and political realities. But beyond the headlines, what are the roots of Puerto Rico’s complex status? And how do these issues continue to shape the lives of its people today?
This is precisely the conversation at the heart of Island Territories, a podcast produced by Sonidorama in partnership with CLACS at NYU, where host Omar A. Dauhajre explores Puerto Rico’s historical challenges and enduring struggles with noted historian Ángel Collado-Schwarz. From colonial origins to today’s debt crisis, this episode delves into the history that too often remains misunderstood.
Tony Hinchcliffe speaking at Trump's Rally at Madison Square Garden In New York City.
How Did Puerto Rico Become a “Colony in Disguise”?
Collado-Schwarz explains how Puerto Rico’s complicated position traces back to the Spanish-American War. After acquiring Puerto Rico from Spain, the U.S. saw the island as a valuable strategic asset. Collado-Schwarz describes how, in 1900, the Foraker Act labeled Puerto Rico an “unincorporated territory,” a term that would shape its legal and economic destiny.
“Puerto Rico was never intended to become a state,” Collado-Schwarz asserts. “It was meant to serve as a strategic outpost—nothing more.”
But what does that mean for Puerto Ricans? What does it mean for an island whose people can serve in the U.S. military but cannot vote in presidential elections?
Can Debt Be a Legacy of Colonialism?
One of the episode’s most powerful discussions centers around Puerto Rico’s financial crisis. The repeal of the Section 936 tax program in the 1990s, which incentivized companies to operate on the island, sparked a wave of economic decline. Desperate for revenue, the Puerto Rican government borrowed heavily from Wall Street, creating a financial crisis that has since spiraled out of control.
“Puerto Rico’s economy wasn’t designed to be self-sustaining,” Collado-Schwarz explains. “When the U.S. removed these tax incentives, the island didn’t have a backup plan. It was left with debt.”
The debt crisis has led to austerity measures, cuts to essential services, and an exodus of residents to the mainland. It raises a profound question: How does a place escape a financial situation largely imposed on it by external forces?
What Lies Ahead for Puerto Rico?
In reflecting on a possible path forward, Collado-Schwarz advocates for self-determination and economic sovereignty. He urges Puerto Ricans and their leaders to seek paths prioritizing local interests and cultural preservation. He says that Puerto Ricans must make their voices heard with Puerto Rico’s fate largely determined by U.S. Congress.
Collado-Schwarz calls for leadership within Puerto Rico that “not only understands the past but also dares to envision a different future.”
Listen to the Full Story
In this episode of Island Territories, Dauhajre and Collado-Schwarz offer an intricate and nuanced discussion of Puerto Rico’s political and financial realities—questions of colonialism, self-determination, and the balance between autonomy and dependency. For anyone who wants to understand the ongoing struggles and the resilient spirit of Puerto Rico, this conversation is a must-listen.
Tune in to the full episode of Island Territories, produced by Sonidorama in partnership with CLACS at NYU, and explore the complicated story of Puerto Rico’s quest for identity and stability.
