Part 5/10:
In the post-World War II era, Puerto Rico underwent a rapid industrialization phase known as Operation Bootstrap, attracting U.S. companies with tax incentives. While this created jobs and improved income levels, the benefits largely favored U.S. firms that repatriated profits back to the mainland. Consequently, Puerto Rico became a low-wage labor market with little local economic development.
The decline of manufacturing jobs coupled with the repeal of tax exemptions in 1996 intensified the island's economic challenges. The ongoing dependence on U.S. corporations created a precarious situation where local businesses struggled to compete, exacerbating unemployment and poverty.