
Making a Crypto Utopia in Puerto Rico - ganlad
https://www.nytimes.com/2018/02/02/technology/cryptocurrency-puerto-rico.html?rref=collection%2Fsectioncollection%2Ftechnology&action=click&contentCollection=technology&region=stream&module=stream_unit&version=latest&contentPlacement=2&pgtype=sectionfront
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frgtpsswrdlame
>“I’m worried people are going to misinterpret our actions,” Mr. Pierce said.
“That we’re just coming to Puerto Rico to dodge taxes.”

Then just a few paragraphs later...

>“So, no. No, I don’t want to pay taxes,” Mr. Collins said. “This is the first
time in human history anyone other than kings or governments or gods can
create their own money.”

>“When Brock said, ‘We’re moving to Puerto Rico for the taxes and to create
this new town,’ I said, ‘I’m in,’” Mr. Collins said. “Sight unseen.”

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pjc50
> "This is the first time in human history anyone other than kings or
> governments or gods can create their own money"

So-called "free banking" where banks issued their own currency and convertible
debt instruments was quite popular before the 20th century. And there have
been a few places issuing local pseudo-currency (Bristol Pound et al).

(There's also the story of
[https://en.wikipedia.org/wiki/Alves_dos_Reis](https://en.wikipedia.org/wiki/Alves_dos_Reis)
, although he was really issuing someone else's money)

~~~
heurist
It's one reason we have the fed in the US.

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pjc50
Reminder that Puerto Rico's electricity is still not fixed:
[https://www.motherjones.com/politics/2018/01/a-third-of-
puer...](https://www.motherjones.com/politics/2018/01/a-third-of-puerto-rico-
is-still-without-power-but-fema-stops-delivering-food-and-water-tomorrow/)

~~~
throwawaysecops
And we've got new taxes on solar too!

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peterwwillis
The article hit the nail on the head: "crypto colonialism".

I mean, say what you will about these newly-found billionaires, but one thing
is for sure: they aren't helping anyone except themselves. They get a bunch of
money dumped into their lap from thin air (literally), and the first thing
they do is go to a place that was just leveled by natural disaster and with a
shattered economy, and buy up cheap land for their own personal playground.

I mean. Wow. Tone deaf doesn't begin to describe it.

~~~
danlevine
That’s actually not true. This article doesn’t show it, but they are doing a
ton of good for the whole island. There are projects for the good of the whole
island focused on power (solar + Blockchain), agriculture, healthcare, real
estate, and education. You don’t need to take my word for it - you’ll see in
the coming months. The people of PR and the gov’t of PR love that these people
are there, and the whole island will benefit,

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thebiglebrewski
This feels like some crazy fantasy land. What are they really going to achieve
down there? Seems like a bunch of people with way too much money and way too
little direction. Does anyone disagree?

...on the other hand, one can certainly be a little jealous of the ability to
be so aimless :).

~~~
oculusthrift
no one is mentioning that the main guy is basically a confirmed pedophile
also.

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rb808
Don't you need electricity first?

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jgh
Puerto Rico is still in the US...I don't really understand how they expect to
avoid taxes by being in Peurto Rico.

Also pay your fucking taxes you entitled douchebags.

~~~
JumpCrisscross
From the article:

"Puerto Rico offers an unparalleled tax incentive: no federal personal income
taxes, no capital gains tax and favorable business taxes — all without having
to renounce your American citizenship."

~~~
jgh
So the IRS can tax Americans everywhere in the world except Puerto Rico?

~~~
chimeracoder
> So the IRS can tax Americans everywhere in the world except Puerto Rico?

Congress passed some tax laws to incentivize "investment" in Puerto Rico. They
haven't been particularly effective.

The reason that they passed these tax laws is because they wanted to try
something to boost the Puerto Rican economy that did _not_ involve addressing
the underlying issue for why Puerto Rico's economy has stagnated for decades.
Repealing the Jones Act would fix most of these problems, but the Jones Act is
politically popular with major Democratic supporters, and Republicans (as a
party) tend not to care about Puerto Rico, so the initiative to repeal it
never went anywhere.

In the end, there's no amount of tax incentivizing that can make up for the
costs that the Jones Act imposes on the Puerto Rican economy, which is why the
tax laws didn't halt the brain drain. Of course, the failure to provide
effective disaster relief in Puerto Rico this past year hasn't exactly helped
either.

~~~
jgh
Why is the Jones Act popular with democrats?

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p_eter_p
"The domestic shipping industry is an economic behemoth in Florida,
contributing 52,140 maritime jobs and $9.6 billion to Florida’s economy,
according to a 2014 study by PricewaterhouseCoopers. The Port of Jacksonville
is the nation’s hub for Jones Act shipping to Puerto Rico, and Florida ranks
second among all states in jobs affected by the domestic maritime industry."

[http://www.miamiherald.com/news/weather/hurricane/article177...](http://www.miamiherald.com/news/weather/hurricane/article177071371.html)

~~~
chimeracoder
> "The domestic shipping industry is an economic behemoth in Florida,
> contributing 52,140 maritime jobs and $9.6 billion to Florida’s economy,
> according to a 2014 study by PricewaterhouseCoopers. The Port of
> Jacksonville is the nation’s hub for Jones Act shipping to Puerto Rico, and
> Florida ranks second among all states in jobs affected by the domestic
> maritime industry."

While that's true, that's not the reason that Democrats specifically are
unwilling to touch the Jones Act. Florida is a pretty purple state, and
Democratic senators from other states don't care as much about the shipping
industry in Florida. Furthermore, Marco Rubio (a Republican) represents
Florida, but he was actually a strong advocate of waiving (though not
repealing) the Jones Act after Hurricane Maria.

The reason Democrats in particular are unwilling to touch the Jones Act is
because the AFL-CIO lobbies for it very, very heavily. The AFL-CIO lobbies for
the Jones Act in general because it boosts the demand for jobs in unions that
they control. In addition, the AFL-CIO also has a "complicated" relationship
with Puerto Rico, which is why they so specifically opposed temporarily
waiving the Jones Act for Puerto Rico after Hurricane Maria hit, even though
they've begrudgingly accepted temporary waivers for US cities hit by other
recent hurricanes (like Harvey in Houston).

~~~
dragonwriter
> The reason Democrats in particular are unwilling to touch the Jones Act is
> because the AFL-CIO lobbies for it very, very heavily.

Plenty of Democrats, especislly since Bill Clinton’s Presidency, have been on
the side of corporations against the AFL-CIO and organized labor generally on
lots of issues of central importance.

~~~
chimeracoder
> Plenty of Democrats, especislly since Bill Clinton’s Presidency, have been
> on the side of corporations against the AFL-CIO and organized labor
> generally on lots of issues of central importance.

First of all, the AFL-CIO _is_ a corporation, so this isn't really a
meaningful dichotomy.

But moreover, I'm not sure why this comment is at all relevant? Sure,
sometimes Democrats might not always vote the way the AFL-CIO wants, but that
doesn't change the fact that the AFL-CIO are major influencers of the
Democratic party platform, and it's not at all debatable that the AFL-CIO has
lobbied incredibly heavily in favor of the Jones Act.

