The Solution Presentation Continued

Today in class, we finished the solution presentation project. We will present tomorrow. Below is the information from our power point. I feel confident. I changed the graphs on my slides.

Overview of problems in Puerto Rico

·       Hurricane Maria hit Puerto Rico in 2017 

·       caused power outages to 90% of the territory

·       loss of housing and infrastructure

·       contamination of water (44% of population were without clean water) (Pentagon)

·       AS A RESULT OF DESTRUCTION - PUERTO RICANS MIGRATED TO U.S. MAINLAND

·       Natural Disasters

·       periodic droughts ~ causes water shortages

·       hurricanes

·       soil erosion 

·       industrial pollution

  The economy is in shambles and the Economic growth has been negative for the past 11 years:the removal of tax preferences that causes U.S. firms to invest in Puerto Rico. Without those preferred taxes the U.S. stopped investing in and giving money to Puerto Rico. The oil prices, which they use to power almost all their electricity, increased as well.There was an excess of cut jobs and of emigration. Their current unemployment rate is number 146 compared to the rest of the world, and their net migration is -16 migrants/1,000 population.The overall challenge they are facing is balancing their spending on trying to restore their economy and employment while still having enough money for other necessities. 

  Solutions for Puerto Rico

  Puerto Rico is US territory; a simple solution to Puerto Rico’s economic strain due to hurricane Maria is having the US government send the necessary money to repair the damage done by it. Puerto Rico should look for less expensive means of powering their electricity. For example they could invest some money in solar and wind powered energy. This would stop their primary source of energy being powered by oil and. They also need to renegotiate with U.S. firms, and make a tax compromise that would benefit both sides. This compromise should enable them to start investing in Puerto Rico again.When Puerto Rico originally had U.S. firms invested in their country their economy was thriving so, if they get them back they should have some kind of  rise in economic growth. they should next work on developing more job opportunities. This will restore their employment rate and stop a prominent push force of immigration in their country. 

  Problems in Italy

  Structural issues in the Government stop changes in the country from being made efficiently. The problems include: labor market inefficiencies, slow judicial system, and a weak banking sector. In Switzerland a case takes 400 days to go through the three courts, but takes 1,000 days in Italy (thelocal). The public debt is 131% of its GDP. The trial in the first court level takes on average 564 days in Italy, compared to the OECD average of 240 days (thelocal). Legal case Types In Italy include salaried and hourly cases. Salaried jobs pay a fix amount, but hourly jobs pay per hour. (salaryexplorer)  

  The labor force participation of people 15-24 has decreased significantly, and is currently at a total of 34.7%. (wol.iza)

  Solutions for Italy

  They could stand by a budget for their country as to not go into more debt and slowly pay back their original debt. A solution to their slow judicial system could be passing a law that says you can only charge lawyers for a limited amount of hours worked. This encourages them to close the case quicker. Italy Becoming a green-economy creates jobs that can be filled by the youth improving their labor market inefficiencies. The new jobs would be centered around: energy efficiency, renewable energies, clean mobility, sustainable waste management system, and environmental protection.(weforum)With these improvements being done they can rebuild trust with their investors and European partners. This could lead to better trading and less debt in the future.