The Weekly Journal - Wednesday, February 2, 2022

Wednesday, February 2-8, 2022 - // no. 145

How did we get in debt? P6 G5 leads in customer satisfaction P8 College professors save tequila industry P13

Puerto Rico and the Caribbean

www.theweeklyjournal.com

Puerto Rico and the World’s economic outlook facing uncertainty in 2022

There are six specific issues that could develop favorably for the island’s economy in 2022

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Juan A. Hernández, The Weekly Journal

Valentine’s Day alternatives P14

jhernandez@wjournalpr.com

wo years after the Covid-19 virus acquired pandemic status wreaking havoc throughout world economies, the relief vaccines should have provided seems to have fall short. As the virus’ Delta and Omicron variants continue to spread, the world feels now more vulnerable than ever.

According to Sergio Marxuach, Policy Director of the Center for a New Economy (CNE), the situation in Puerto Rico is exactly the same as anywhere else in the

world. Nevertheless, for Marxuach, Puerto Rico’s economic outlook for 2022 does not seem as bleak as the International Monetary Fund (IMF) analysts see the world’s future this year.

“As 2022 begins, there is reason to believe that while we may need to keep adapting to new realities, the new year may also bring some positive developments for Puerto Rico,” said Marxuach in the January issue of “Review,” CNE’s monthly publication.

CNE’s Policy Director identified six specific situations which could develop favorably for GO TO PAGE 4

The Weekly Journal > Wednesday, February 2, 2022 >

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La verdad es que no podemos ensenarles a ser buenos, tratandolos mal.

La verdad te necesita para cuidar el futuro.

La verdad no tiene precio.

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a week in review “Taberna Medalla” Opens its Doors

The new “Taberna Medalla” (Medalla Tavern) gastropub has just opened its doors in Condado’s Ventana al Mar. The offerings include fish and chips, (made from the catchof-the-day and Medalla beer-battered) and fresh oysters in a passion fruit mignonette. At the helm is Chef María Mercedes Grubb, the first Puerto Rican woman to be nominated for the James Beard award for premier best chef, who also has over 18 years of experience in the culinary industry on the island, as well as in New York. Food & Wine magazine has recognized Chef Grubb as one of the best chefs on the island. In addition to Medalla, the gastropub offers a variety of micro-brews, handcrafted locally. Come by between 5 and 10 p.m., Thursday through Sunday, for proper post-beach refreshments.

Art on the pyramid

Simply Organic Supports HASER Simply Organic has chosen HASER as one of the recipients of the Simply Organic Giving Fund. HASER, which stands for Haciendo Acciones Socio-Ecológicas Resilientes (in English - “Making Social-Ecological Actions Resilient”) is a Puerto Rico-based organization that addresses community wellness in the wake of natural disasters and socio-economic crises.

Through the initiative, HASER will receive a $15,000 grant to expand its network of local farmers and continue to combat food insecurity on the island, especially in the context of a legislative environment that has left the island dependent on imported food. In the past, the organization has provided over 28,000 lbs. of organic and locally grown produce to families in need.

Powered BY El Vocero de Puerto Rico, 1064 Ave Ponce de León 2nd floor San Juan, PR Postal Address: PO Box 15074, San Juan, PR 00902

The Museum of Contemporary Art of Puerto Rico (Spanish acronym, MAC) recently celebrated the event “Entre tierra firme y mar”, which officially presented a commissioned project by artist Nathan Budoff. In collaboration, Budoff revived the iconic pyramid “Modesto Escalera” of the Cataño Municipality with murals featuring the juxtaposition of flora and fauna with imagery relating to urban development - commentary on humanity’s ecological footprint. His project constitutes the first phase of an alliance between MAC and the Center of Studies for Sustainable Development of the University Ana G. Méndez. The artistic and educative projects were created thanks to the support of the Joint Special Commission of Legislative Funds for Community Impact, the Institute of Puerto Rican Culture, and the Flamboyán Fund for the Arts and Global Giving.

President Salvador Hasbún shasbun@elvocero.com

VP of Accounting Félix A. Rosa frosa@elvocero.com

Human Resources Director Arlene Rolón, PHR arolon@elvocero.com

Vp of Marketing and Business Operations Michelle Pérez Miperez@elvocero.com

VP of Production Eligio Dekony edekony@elvocero.com

VP of Editorial Content Juan Miguel Muñiz Guzmán jmuniz@elvocero.com

Multi-Platform Graphic and Technology Director Héctor L. Vázquez hvazquez@elvocero.com

Phone: 787-622-2300, 787-721-2300

Multi-Plataform Digital Director María Arce marce@elvocero.com

Customer Service: 787-622-7480

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CONTINUED FROM PAGE 1 Puerto Rico’s economy in 2022, despite their more than probable negative outcome. Marxuach considers the pandemic, the debt restructuring, reconstruction after Hurricane Maria, inflation, the U.S. mid-term elections and the return of geopolitics, the issues that must be “kept on the radar” for their possible positive –or negative– outcome.

For Marxuach, the island’s economic outlook seems to hinge on the pandemic. While he insists that we have a better understanding of the virus, and vaccines have been developed, “we still have a [long] way to go before we can claim that COVID-19 is just another disease we can live with.”

Plan Of Adjustment

Regarding the debt restructuring plan approved by federal Judge Laura Taylor Swain two weeks ago, Marxuach admitted the plan “is not perfect, and it has been the subject of significant criticism,” and it would be “a really difficult task to determined, with any certainty, whether the plan is adequate.”

“But it does offer some debt relief and lifts the The CNE’s executive pointed out the generalized bankruptcy cloud from Puerto Rico, which should confusion caused by the unprecedented inflation be a net positive for people looking at potential rate (the highest in 40 years) and questioned investment in Puerto Rico,” he whether the U.S. Federal argued.

Reserve Bank announced Marxuach also put a intention to increase interest positive spin on the possibility rates, at least three times in 2022, “can tame inflationary of the federal government pressures without inducing a finally approving projects recession or provoking a plunge and releasing relief funds for Resurgence of the in asset prices.” reconstruction after Hurricane COVID-19 virus and A little less dark, but not Maria. Still, he recognized that its variants have without risks, is the possible the difficulties now laying ahead provoked renewed outcome of the mid-term are more “political in nature” in mobility restrictions elections in the U.S. terms of how the reconstruction which in turn have Most political forecasts put should play out. caused supply chain Republicans regaining control One of the two issues disruptions and of the Senate, which would put on which Marxuach did not higher inflation at risk legislation increasing venture a positive outlook was rates. federal spending to Puerto Rico. inflation. He argued that the “Under a Republican significant amount of economic majority, Puerto Rico could stimulus offered by the even face the rescission of government, particularly in the budgetary authority for certain programs or U.S., prevented demand from plunging, while the the reduction of funds already appropriated pandemic disrupted production worldwide.

As 2022 begins, there is reason to believe that, while we may need to keep adapting to new realities, the new year may also bring some positive developments for Puerto Rico.

– Sergio Marxuach Policy Director, CNE

In fact,

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In fact, According to the IMF, inflation throughout the world is expected to remain high, averaging 3.9% in advanced economies and 5.9% in developing economies during 2022.

for certain uses,” said Marxuach, who emphasized on the need for Governor Pierluisi’s administration to “aggressively push the Puerto Rican agenda in Washington DC” in the next few months.

Puerto Rico In The Worldwide Arena

In an update of its World Economic Outlook, the International Monetary Fund (IMF) concludes the resurgence of the COVID-19 virus and its variants have provoked renewed mobility restrictions which in turn have caused supply chain disruptions and higher inflation rates, particularly in the U.S., and many emerging markets and developing economies.

According to the IMF, inflation throughout the world is expected to remain high, averaging 3.9% in advanced economies and 5.9% in developing economies during 2022.

IMF’s analysts estimate high inflation level “should fade as supply disruptions ease, monetary policy tightens and demand rebalances away from goods-intensive consumption toward services.” But there are still risks. Inflation could increase more than expected because supply disruption persist and wage inflation feeds into it.

The anticipated Fed increase in interest rates is expected to lead to a less accommodative

[High inflation level] should fade as supply disruptions ease, monetary policy tightens and demand rebalances away from goods-intensive consumption toward services.

– IMF’s analysts

monetary policy in the U.S., which could spill over to emerging market, in an effort to curb inflation.

Inflation has been particularly high in the U.S. because of the switch to goods consumption over services due to high demand, bottlenecks in the supply chain, labor shortages and demands for higher wages.

The risk is that persistently high living costs and tighter labor markets may force workers to push for higher wages, and employers complying with such demand. The resulting higher labor costs would in turn push up prices further, perpetuating

an inflationary cycle. While this situation affects most countries, including Puerto Rico, it is particularly salient in the U.S., where labor market shortages seem to have fallen, and labor costs have risen.

Still, high inflation is expected to persist longer than anticipated by IMF analysts, with ongoing supply chain disruptions and high energy prices throughout most of 2022, thus heightening the level of uncertainty. But the expectation is that prices would increase “at a more moderate pace” of 4.5% in 2022 before starting to decline in 2023.

The IMF expects global growth “to moderate” (decrease) from 5.9 in 2021 to 4.1 in 2022.

Removing fiscal policies in the U.S., such as the administration’s Build Back Better package, the withdrawal of monetary accommodations and continued supply shortages caused the IMF to revise and reduce the growth outlook for the U.S., while the protracted financial stress among property developers in China induced a similar, albeit lesser, downgrade.

Monetary policies in many countries will need to be tightening even more to curb inflation, while fiscal policy will have to prioritize health and social spending while attending to those worst affected.

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Puerto Rico’s crippling debt, or how did we get where we are now

The current situation was highly influenced by the phasing out of Section 936, reveals study (First of a series)

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By Zoe Landi Fontana, The Weekly Journal

hroughout its history, Puerto Rico’s tax policies have prevented the country from developing sustainable economic growth, according to a recently published report by David Allio, principal executive and strategy consultant for Allio Associates, a company that provides labor participation, employment, and the continued services to Forbes 1000 firms. reliance on Federal ‘social support’ programs to The current situation continues to exacerbate raise the continuing dismal per-capital income rates old problems in growth, employment, workforce among the diaspora,” wrote Allio. participation, and long-term development due to By the mid-90s, Section 936’s effectiveness was policies that are passed without regard to their long- questioned by Congress, who found that, among a term effects, Allio argues. lack of other purported economic improvements, “New residents may benefit from income, firms that came to the island incentivized by the interest, capital gains, and property tax exemptions tax benefits of section did not result in much of a while existing residents are excluded and burdened. benefit for the island in terms of level and quality of It’s no surprise that tax jobs that they provided. avoidance is a national Between 1970 and profession,” the report 1990, there was a net reads. loss of over 20,000 jobs In Allio’s report, due to the replacement Puerto Rico’s current of labor-intensive situation was highly industry with capitalinfluenced by the intensive industry, a phaseout of section byproduct of section 936 and constant 936. In this time period unbudgeted 2,243 plants and 29,847 – Arthur MacEwan enhancement of local jobs were created, but Professor Emeritus of Economics social programs (which 1,931 plants closed, resulted in rapidly losing 51,800 jobs. increasing debt), as Allio pointed to the well as the 2008 recession, hurricanes Georges, fact that firms benefiting by Section 936 kept most Irma, and Maria, the Commonwealth’s municipal of their profits, paid no federal taxes, and only bond meltdown, and Governor Luis Fortuño’s around 5% of their revenue went to the Puerto Rican signing of Law 7 in March 2009. government.

In 2016, the U.S. Senate Finance Committee Section 936 published a report, authored by Arthur MacEwan, Section 936 of the U.S. Internal Revenue Code Professor Emeritus of Economics at the University was passed in 1976 and exempted US corporations of Massachusetts Boston, stating that “Section 936 from paying taxes on income generated by of the Internal Revenue Code was not an effective manufacturing activities in Puerto Rico. By the means to promote economic growth in Puerto 1980s, an estimated 80% of the U.S.-produced Rico, and the emergence of the current and pharmaceuticals were manufactured in Puerto Rico. long-continuing recession cannot be attributed to “The only problem was that 936 attracted highly the termination of 936. Moreover, at this point, capital intensive versus labor-intensive development U.S. firms are able to operate in Puerto Rico as and did little to change the internal dynamics of Controlled Foreign Corporations (CFCs), which

Section 936 of the Internal Revenue Code was not an effective means to promote economic growth in Puerto Rico.

In fact, Between 1970 and 1990, there was a net loss of over 20,000 jobs due to the replacement of labor-intensive industry with capitalintensive industry.

Source: Allio Associates

provides them with virtually all the advantages of Section 936 (and does not impose some of the restrictions of 936). Section 936 is a failed policy. It would be the height of folly to reinstitute 936—or of a 936-like program—as a means for establishing economic expansion in Puerto Rico.”

Accumulation and default on debt

In 2016, the year that section 936 completely phased out, Puerto Rico defaulted. As a result, the U.S. Government established the Financial Oversight Management Board, under the guidance of PROMESA, to manage the country’s handling of the debt.

The Commonwealth government is one of the largest employers in Puerto Rico and on average contributes 13.36% of the island’s GDP. In 2020, government positions made up 25% of the workforce, and in the past as high as 30%.

“Having given away the tax base for decades leaves little but empty aspirations. We are, in fact, a welfare society,” said Allio. The labor participation rate is estimated at 38%, according to data by The World Bank. For comparison, the US Bureau of Labor Statistics Dec. 2021 report found that the national civilian labor force participation was at 61.9%.

General sales and excise taxes make up the bulk of revenue generation for the government. Puerto Rico currently has some of the highest tax rates on general sales, alcohol, cigarettes, and cars when compared to other jurisdictions in the U.S. Yet despite the small base of taxable income generated by the population, a multitude of tax exemptions exist for activities in real estate development, manufacturing, historical preservation, capital investment, exporting, homeownership, and, of course, companies qualifying for tax exemption under Law 60 (Acts 20 and 22).

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Restaurants remain strained going into 2022

This hard-hit sector needs government support, says ASORE

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By Zoe Landi Fontana, The Weekly Journal

prospects for traders. Much has been said about the impact on the sector. With this report, we clearly see where we are and what are the expectations for the future,” said Mateo Cidre, ASORE president.

Gustavo Vélez of Inteligencia Económica compiled the report’s data by surveying 1,331 establishments on the island, of which 53 were chains. The survey took food and beverage establishments of all sizes into consideration, from bakeries to fine dining.

he restaurant industry was one of the most highly affected by the COVID-19 pandemic.

The Minimum Wage Effect The Regarding Puerto Rico’s Association of minimum wage, which rose Restaurants of to $8.50 from $7.25 on Jan Puerto Rico (Spanish acronym, 1. 2022, responses were In the first 10 ASORE) shared results from mixed. An estimated 30% of months of 2021, 2021 and commenced 2022 those surveyed replied that restaurant sales with a hopeful, but realistic, the minimum wage caused a were 43% higher outlook. reduction of hours and payroll, year-over-year In the first 10 months of while 18% will be cutting compared to 2020, 2021, restaurant sales were 43% benefits for their employees. and 5.7% higher than higher year-over-year compared The most visible effect of the same period in to 2020, and 5.7% higher than the augmented minimum 2019. the same period in 2019. This wage is seen in increased hint of recovery is relieving - in menu prices –80% of Source: Asore 2020, restaurant sales were respondents had increased down 20% compared to 2019, their prices as a result. Higher after harsh restrictions were put payroll costs, in addition to into place in mid-March 2020. higher food prices, will make “The past two years have been about reaction, going out to eat more costly. not planning. In the face of this extraordinary The National Research Association situation, it is imperative to learn more about conducted a survey in Nov. 2021, where 91% of the current state of the restaurant industry, respondents replied that their total food costs which has suffered so much from the pandemic. as a percentage of sales are higher than preIt is also the right time to measure the future pandemic levels. As a result, profitability is down

In fact,

The past two years have been about reaction, not planning. In the face of this extraordinary situation, it is imperative to learn more about the current state of the restaurant industry.

– Mateo Cidre President, ASORE

- 80% of respondents reported that their profit margins are lower than pre-pandemic as well.

Other concerns of the industry include shortages and delays in receiving food and beverage items, as well as equipment and service items, dampened staffing levels, and the Omicron variant, which has made potential diners less inclined to eat indoors.

Recommendations From ASORE

ASORE concluded that the restaurant industry is far from being normalized, like many other economic sectors that are working in a hostile environment of heightened operational costs. The organization urges the governor and legislature to promote measures that will support the restaurant industry’s recovery –including a moratorium on measures or legislation that will further increase the costs of doing business, and reimplementing a public policy “work requirement”.

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5G beatS everybody in customer satisfaction

T-Mobile 5G customers are more satisfied with its cellular internet connection than other providers in the U.S.

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By Juan A. Hernández, The Weekly Journal -Mobile came ahead

of the herd of cellular and internet service providers in the U.S. –including industry’s heavyweights AT&T and Verizon– in a recent 5G service and customer satisfaction survey by Speedcheck, an internet performance testing and network diagnostics site.

According to the survey, consumers

using 5G service for their brought the major wireless carrier internet cellular connection choices from four down to three, are more satisfied than those but also afforded the company who only have access to 4G or a two-year head-start in the 3G connections. The survey’s development of the 5G network. satisfaction index combined the The transaction included Sprint’s T-Mobile is ahead “very satisfied” and “satisfied” 2.5Ghz 5G carrier frequency, a of Verizon’s 3G/4G answers of participating so-called “Goldilocks” frequency experience by 6% customers. in the mid-band that offers a fast and surpasses AT&T Speedcheck’s survey 5G speed and long range. So, by just 2%. concludes T-Mobile 5G T-Mobile acquired “an excellent Source: Speedcheck customers “are more satisfied” 5G service over a wide area” the with their 5G cellular internet survey states. connection than AT&T and In the meantime, both AT&T Verizon 5G users by a and Verizon opted for their low margin of 9.5% and 7.8%, respectively. band and 600 and 800Mhz frequencies for their Also, T-Mobile’s customers using coverage. In the long run, this decision proved to be its 3G/4G connection, which the inadequate because, while the low band frequencies company still carries, are also more provide a longer range, they don’t support 5G satisfied than customers from the speeds. On the other hand, while high band competition. T-Mobile is ahead of millimeter wave (mmWave) frequencies do provide Verizon’s 3G/4G experience by high 5G speeds, higher frequencies mean limited 6% and surpasses AT&T coverage and does not penetrate walls easily. by just 2%. The new But, despite the hurdle, AT&T and Verizon plan statistic turns the to up the ante with investments to reach 75 million tables on AT&T and and 100 million customers, respectively, by the end Verizon, who used to of the year, and the recent Federal Communications be the ones dominating Commission (FCC) and Federal Aviation Authority the 3G/4G market. decision to allow high-powered C-band frequency near airports is paving the way.

It is still to be seen whether AT&T and Verizon will The Background When T-Mobile acquired be able to catch up to T-Mobile and how long it will take.

Sprint in April 2020, it

In fact,

FAA clears Verizon and AT&T to turn on more 5G cell towers David Koenig, The Associated Press

Federal safety regulators say they have cleared the way for Verizon and AT&T to power up more towers for new 5G service without causing radio interference with airplanes.

The Federal Aviation Administration said last week that it took the steps after receiving details from the telecommunications companies about the location of wireless transmitters.

The FAA’s move will let the companies activate 5G cell towers closer to airports without hindering the ability of planes to land during poor weather.

Verizon and AT&T declined to comment. Nick Ludlum, a spokesman for the telecommunications trade group CTIA, called it a “positive development that highlights the considerable progress the wireless industry, aviation industry, FAA and FCC are making to ensure robust 5G service and safe flights.”

The trade group Airlines for America issued a

as they began offering the similar statement. Spokesman service in many U.S. cities Carter Yang added that all on Jan. 19. sides are working on “a more Since the dispute came efficient permanent solution” to a head earlier this that will avoid disrupting air month, the FAA has cleared traffic as more 5G towers are most types of airline planes activated.

— 90% of the U.S. fleet — to Concern About Aviation operate around 5G signals, Safety saying that their heightAviation groups and the measuring devices, called FAA had warned that the radio altimeters, are safe companies’ 5G service, which from radio interference. uses part of the radio spectrum Concern about new high-speed wireless Dire predictions of called C-Band, was too close service interfering with airplanes appears to be easing. > AP Photo/Bill Sikes, File thousands of canceled to the spectrum range used flights did not come true, by instruments that measure but dozens of flights have been grounded by the height of planes above the ground — crucial information for landing in low visibility.

5G concerns, including U.S.-bound international Verizon and AT&T, which spent billions to build flights last week and some domestic flights this 5G networks, disputed the FAA’s conclusions. But week at Paine Field near Seattle. Some small they twice agreed to delay launching new 5G and airline planes, notably a group of Embraer temporarily delayed it around many airports even regional jets, have not been cleared.

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How Fed hikes could affect mortgages, car loans, card rates Asserts now is the time to raise its benchmark rate from near zero

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Christopher Rugaber, The Associated Press

ill mortgage rates go up?

How about car loans?

Credit cards?

How about those nearly invisible rates on bank CDs — any chance of getting a few dollars more?

With the Federal Reserve signaling last week that it will begin raising its benchmark interest rate as soon as March — and probably a few additional times this year — consumers and businesses will eventually feel it.

The Fed’s thinking is that with America’s job market essentially back to normal and inflation surging well beyond the central bank’s annual 2% target, now is the time to raise its benchmark rate from near zero.

The Fed had slashed its key rate after the pandemic recession erupted two years ago. The idea was to support the economy by encouraging borrowing and spending. But now, by making loans gradually costlier, the Fed hopes to stem the surging price increases that have been squeezing consumers and businesses.

Here are some questions on what this could mean for consumers and businesses.

I’m considering buying a house. Will mortgage rates go steadily higher?

Probably, but it’s hard to say. Mortgage rates

keeping mortgage rates relatively low. don’t usually rise in tandem with the Fed’s rate increases. Sometimes they even move in the opposite direction. Long-term mortgages tend to What about other kinds of loans? track the rate on the 10-year Treasury, which, in For users of credit cards, home equity lines turn, is influenced by a variety of credit and other variableof factors. These include interest debt, rates would rise investors’ expectations for by roughly the same amount future inflation and global as the Fed hike. That’s because demand for U.S. Treasurys. those rates are based in part on When inflation is expected to banks’ prime rate, which moves stay high, investors tend to sell in tandem with the Fed. By making loans Treasurys because the yields Those who don’t qualify for gradually costlier, on those bonds tend to provide such low-rate credit card offers the Fed hopes to little to no return once you might be stuck paying higher stem the surging account for inflation. As that interest on their balances because price increases that happens, the selling pressure the rates on their cards would rise have been squeezing on the bonds tends to force as the prime rate does. consumers and Treasurys to pay higher rates.

The Fed’s rate hikes won’t businesses.

Yields then rise in response. The necessarily raise auto loan result can be higher mortgage rates. Car loans tend to be more rates. But not always. sensitive to competition, which can slow the rate of increases.

In fact,

Does that mean home-loan rates won’t raise much any time soon?

Not necessarily. Inflation is far exceeding the Fed’s 2 percent target. Fewer investors are buying Treasurys as a safe haven. And with numerous Fed rate hikes expected, the rate on the 10-year note could rise over time — and so, by extension, would mortgage rates.

It’s just hard to say when.

On the other hand, even when Treasury yields are comparatively low relatively to inflation, as they are now, investors often still flock to them. That’s especially true at times of global turmoil. Nervous investors from around the world often pour money into Treasurys because they are regarded as ultrasafe. All that buying pressure tends to keep a lid on Treasury rates, which generally has the effect of

Would I finally earn a better than measly return on CDs and money market accounts?

Probably, though it would take time.

Savings, certificates of deposit and money market accounts don’t typically track the Fed’s changes. Instead, banks tend to capitalize on a higher-rate environment to try to thicken their profits. They do so by imposing higher rates on borrowers, without necessarily offering any juicer rates to savers.

The exception: Banks with high-yield savings accounts. These accounts are known for aggressively competing for depositors. The only catch is that they typically require significant deposits.

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Javier A. Hernández Entrepreneur and writer

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Puerto Rico sovereignty: New opportunities for American businesses

n 2020, Puerto Rico celebrated its sixth status plebiscite, just as recent events in Puerto Rico and the U.S. have led not just to the political and economic demise of the Commonwealth, but the statehood option as well. With only 27% of all registered voters supporting statehood in 2020 and 67% of the people not voting for the pro-statehood governor, there certainly is no mandate for Puerto Rico statehood and Congress knows this.

In 2014, the U.S. Congress’ Government Accountability Office (GAO) published a report that explained how statehood would negatively impact both the Puerto Rican and U.S. economies.

According to this report, the increased federal tax burdens of statehood, up to $11.6 billion alone, would decimate the Puerto Rican economy, consolidate welfare dependency on federal funds, and push American companies, along with thousands of Puerto Rican professionals, to leave Puerto Rico, which would further exacerbate Puerto Rico’s economic debacle. Realizing that both the Commonwealth and Statehood options promote dependency and poverty in Puerto Rico, where are entrepreneurs and investors going to turn to in regard to long-term investments and operations in Puerto Rico?

Most Puerto Ricans, particularly young professionals, realize that statehood is not a viable option for their country for political, economic, and cultural reasons. Today, after 124 years of undemocratic colonial rule, Puerto Ricans and Americans have an opportunity to be on the right side of history and forge the path towards decolonization via sovereignty, either via Independence or Free Association - a dignified political relationship whereby Puerto Rico would become a sovereign nation, yet associated with the United States as an ally and economic partner. Today, the U.S. has three such beneficial relationships with three Pacific Island nations.

Thankfully, Free Association is the status option with the largest growth margin of support in modern Puerto Rico, going from 0.29% of the vote in the 1998 plebiscite to 33.3% of the vote in the 2012 plebiscite. In the 2012 plebiscite, both sovereignty options together garnered almost 40% of the vote – not too bad when one considers that pro-sovereignty advocates have been persecuted by the colonial regime and statehooders for over a century. The fear of freedom is slowly wearing off. In the recent 2020 elections, the Puerto Rican Independence Party (PIP) received renewed electoral support and various pro-sovereignty

candidates were elected to Puerto Rico’s legislature. The tides are turning.

According to estimates discussed in my recently published book, “Puerto Rico: The Economic Case for Sovereignty”, a Republic of Puerto Rico with only a robust customs system at all of our ports of entry and a competitive 15% tax on multinational corporations (a tax rate defended by the United States) would be able to generate $17.6 billion in revenues, which is $8.6 billion more than Puerto Rico’s current operating budget of $9 billion. As you can see, sovereignty is the option of real economic growth and development.

A sovereign Puerto Rico would prioritize specific strategic sectors that the government would incentivize, such as industry, tourism, technology, pharmaceutical, aerospace, and scientific sectors, among others. American companies would benefit since they would be able to invest in these priority sectors as well, furthering our national economic development goals. While statehood would supposedly bring in more funds for food stamps; sovereignty, on the other hand, would finally open Puerto Rico to many economic opportunities.

For entrepreneurs considering their future operations in Puerto Rico, sovereignty offers

American companies would benefit since they would be able to invest in these priority sectors as well, furthering our national economic development goals. stability, transparency, rule of law, and a dignified relationship with the United States based on sovereignty, free transit of peoples and goods, common interests, and a path forward that would greatly benefit our important business communities. For entrepreneurs, now is the time to embrace and support sovereignty, democracy, economic development, and a new relationship between our two nations.

Our future as a free, prosperous, and democratic nation depends on it.

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día mundial

Alex DJ

< The Weekly Journal > Wednesday, February 2, 2022

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There is much more to mindfulness than the popular media hype It is now offered in workplaces, schools, psychologists’ offices and hospitals

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Pierce Salguero, Associate Professor of Asian History & Religious Studies, Penn State University

indfulness is seemingly everywhere these days. A Google search I conducted in January 2022 for the term “mindfulness” resulted in almost 3 billion hits. The practice is now routinely offered in workplaces, schools, psychologists’ offices and hospitals all across the country.

Most of the public enthusiasm for mindfulness stems from the reputation it has for reducing stress. But scholars and researchers who work on mindfulness, and the Buddhist tradition itself, paint a more complex picture than does the popular media.

Medicalizing Meditation

Mindfulness originated in the Buddhist practice of “anapana-sati,” a Sanskrit phrase that means “awareness of breath.” Buddhist historian Erik Braun has traced the origins of the contemporary popularity of meditation to colonial Burma – modern-day Myanmar – in the late 19th and early 20th centuries. Meditation, which was practiced almost exclusively inside monasteries until then, was introduced to the public in a simplified format that was easier to learn.

The process of translating the Buddhist practice of meditation across cultural divides transformed the practice in significant ways.

Modern meditation often has different goals and priorities than traditional Buddhist meditation. It tends to focus on stress reduction, mental health or concrete benefits in daily life instead of spiritual development, liberation or enlightenment.

A pivotal moment in this transformation was the creation of the Mindfulness-Based Stress Reduction (MBSR) protocol by Jon Kabat-Zinn, a professor of medicine at the University of Massachusetts Medical School, in 1979. The stress reduction program introduced a standardized way of teaching meditation to patients so that its health benefits could be more rigorously measured by scientists.

Research on this new kind of “medicalized” mindfulness began to gather steam in the past two decades. As of today, there are over 21,000 research articles on mindfulness in the National Library of Medicine’s online database — two and a half times as many articles as have been published

on yoga, tai chi and reiki combined.

Scientific Evidence vs. Mindfulness Hype

Medical researchers themselves have had a far more measured opinion about the benefits of meditation than the popular press.

For example, a 2019 meta-analysis, which is a review of many individual scientific studies, pointed out that the evidence for the benefits of mindfulness and other meditation-based interventions has “significant limitations” and that the research has “methodological shortcomings.”

Based on their review of the scientific literature, the authors warned against falling prey to “mindfulness hype.” On the positive side, they found various forms of meditation to be more or less comparable to the conventional therapies currently used to treat depression, anxiety, chronic pain and substance use. On the other hand, they concluded that more evidence is needed before any strong claims can be made regarding treatment of conditions such as attention disorders, PTSD, dysregulated eating or serious mental illnesses.

in which it developed and has been practiced for centuries. Mindfulness is one small part of a diverse range of healing techniques and perspectives the Buddhist tradition has developed and maintained over many centuries.

In a recent book, I have traced the global history of the many ways that the religion has contributed to the development of medicine over the past 2,400 years or so. Buddhist tradition advocates countless contemplations, devotional practices, herbal remedies, dietary advice and ways of synchronizing the human body with the environment and the seasons, all of which are related to healing.

These ideas and practices are enormously influential around the world as well as in Buddhist communities in the U.S. Such interventions have been particularly visible during the COVID-19 pandemic – for example, through the medical charity of major international Buddhist organizations as well as through health advice given by high-profile monastics such as the Dalai Lama.

Medicalized meditation is now a self-help commodity that generates over $1 billion per year, leading some critics to label it “McMindfulness.”

But placing mindfulness back into a Buddhist ethical context shows that it is not enough to simply meditate to reduce our own stress or to more effectively navigate the challenges of the modern world.

Modern meditation often has different goals and priorities than traditional Buddhist meditation. It tends to focus on stress reduction, mental health or concrete benefits in daily life.

Putting Mindfulness Back Into Context

As a historian of the relationship between Buddhism and medicine, I argue that mindfulness can be a beneficial practice for many people, but that we should understand the broader context

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/ Wednesday, February 2, 2022

Plantation of blue agave in Jalisco, Mexico.

Mexican university solves agave shortage to continue tequila production

To avoid falling into these semimonthly online by MDPI. unfair practices and guarantee The article is indexed in the the liquor’s high-quality Journal Citation Reports with an standards, several tequila impact factor of 4.35. companies have begun to use The study younger agave plants (between Additional Data confirms that the four and six years old) in their The results have been The Weekly Journal Staff determination of processes. of great interest to the the isotopic ratio “However, it was suspected international scientific n investigation by the of carbon 13 and this practice could alter the community, as well as to Tequila Autonomous University of oxygen 18 can be general characteristics of producers and consumers, since Guadalajara (UAG, for its presented as an the product, which in turn it demonstrates that the use Spanish acronym) concluded auxiliary parameter could affect the quality and of agave plants with different for the authenticity young agave plants can be authenticity parameters of ages (four, five and six years) in of the liquor. used in the production of the drink. This is where the the production of tequila 100% tequila without altering the scientific research developed at white class agave does not have parameters of quality and authenticity of the UAG began,” Romero Cano said. a negative impact on quality Professors Dr. Armando drink, thus strengthening the industry. parameters.

Campos Rodríguez, Dr. Marco In recent years there has been a scarcity of These results are supported because, after the A. Zárate Navarro and Dr. Ana Itzel Zárate Guzmán, agave in the region. Dr. Luis A. Romero Cano, second distillation, the product complies with the researchers at UAG’s Department of Biotechnology Research Professor at UAG and one of the NOM-006-SCFI-2012 official standard parameters. researchers in this project, explained the growing and Environment, developed a project, along with Both the scientific article and Efraín Acosta’s demand for Tequila and its commercial expansion a tequila company in the region, which would Master’s thesis discuss in detail the evidence scientifically support the practice of using younger into international markets caused a particular obtained in the study. agave plants. shortage of the blue variety of the “Agave The results also confirm previously published The group of researchers recently published the Tequilana Weber” plant, the raw material used in studies where the determination of the isotopic article “Effect of Age of Agave Tequilana Weber Blue the production of tequila. ratio of carbon 13 and oxygen 18 is presented as “According to historical data, it has been shown Variety on Quality and Authenticity Parameters for an auxiliary parameter for the authenticity of the the Tequila 100% Agave Silver Class: Evaluation at this phenomenon of scarcity occurs every seven liquor. the Industrial-Scale Level”, in FOODS magazine, or eight years due to the time it takes for the “This information can be useful as an auxiliary an international, scientific, peer-reviewed, open agave plant to mature for harvesting. Agave is parameter to ensure, based on the content of a access journal of food science that is published harvested just before the flowering of the plant, bottle, whether the drink has been made from an Agave Tequilana Weber blue variety plant and when the plant reaches its maximum sugar corroborate the geographical location where the content,” Romero Cano explained. product was made,” Romero Cano explained.

The university professor recalled that data The study also shows that an effective strategy shared by the Tequila Regulatory Council to face the scarcity and oversupply of raw material (CRT), from 1995 to 2012, confirms there was a to produce 100% agave silver class tequila is the transition from oversupply of agave to scarcity, use of young agave (four years). and back to oversupply, which impacted the The authors thanked the Dean of Design, price of the raw material. Because of that, cases Science and Technology, as well as UAG’s Research of product adulteration and counterfeiting Directorate, for the support received to achieve the were detected among disloyal producers, who – Romero Cano, publication of the article through an open service began to use agave plants of different species or Research professor, UAG so that there is free access to the content of the harvested outside the territory that corresponds article. to Tequila’s Denomination of Origin.

Younger agave plants can now be used, keeping the quality parameters of the liquor

In fact,

A

Agave is harvested just before the flowering of the plant, when the plant reaches its maximum sugar content.

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/ Wednesday, February 2, 2022

Valentine’s Day

celebrations for food lovers

Celebrate love through the weekend Weekly Journal Staff

O

Early Valentine’s at Condado Ocean Club : For the Love of Food

n Sunday the 13th, the SOCIAL restaurant will be presenting an exceptional brunch, called From Me 2 Me, which will serve to celebrate self-love and pamper yourself a little. From Me 2 Me Brunch will be held from 11:00 a.m. to 4:00 p.m. with a fixed price menu that includes, among other delicacies, a tasting of chocolate-based desserts.

Brunch will begin with a basket of fresh artisan pastries, followed by a choice of entrées from which to choose: Almond French Toast with Bourbon Maple Syrup, fresh berries, honey and almonds; avocado toast on sourdough bread with chia seeds with poached eggs and asparagus and arugula salad; Crispy Chicken and Bacon Donuts with Muenster Cheese and French Fries; Benedictine eggs with crab and brioche bread; lemon ricotta pancakes with cookie crumbs and lemon syrup and honey glaze; wedge salad with crispy bacon, blue cheese and tomatoes; truffled mac n’ cheese with smoked cheese sauce and egg sunny side up; rib sandwich with Swiss cheese, pickled onions and french fries; or Angus beef

and Iberian chorizo burger with fried egg and mozzarella cheese on brioche bread with roasted garlic mayonnaise.

There will also be a station to make tortillas with ingredients such as ham, chorizo, mushrooms, tomato, pepper and cheese. The brunch closes with a chocolate dessert bar, created by the hotel’s pastry chef, Edgardo Quiles.

Special cocktails, Cava and traditional cocktails will also be served for the occasion.

This fixed price menu is $42.00 for adults and $28.00 for children under 12 years old, not including tips and taxes.

Our iconic Perla room, with its curved windows will be the setting for this dinner designed

by Executive Chef Erika Gómez, and pastry chef Nasha Fondeur.

José C. Padín General manager, La Concha Resort

Valentine’s Dinner At La Concha

The iconic La Concha Resort hotel will celebrate Valentine’s Day with a delicious dinner Monday, February 14, from 7:00 p.m. in the Perla room.

“For Valentine’s Day we have prepared an exquisite culinary experience to enjoy in a unique space. Our iconic Perla room, with its curved windows from which you can see the sea, will be the setting for this dinner designed by Executive Chef Erika Gómez, together with pastry chef Nasha Fondeur,” said José C. Padín, general manager of La Concha Resort.

The celebration starts at 6:00 p.m. in the lobby with a welcome cocktail as a prelude to the dinner that will feature vegetarian options for each course.

Once in the Perla room, diners will start the tasting with Palmier mushrooms with goat cheese whipped with honey as an amuse bouche. For the first course, you will be able to select between shrimp bisque with brandy butter toast on brioche bread;

tuna tartar with shallots, cilantro, avocado, sesame ponzu vinaigrette with root chips; or, for a vegetarian option, a goat cheese tart with local mixed greens, roasted tomatoes, spring onions, sweet pecans and a watermelon balsamic vinaigrette.

Alternatives for the main course are beef tenderloin served with celery purée, asparagus and demi glaze; shrimp and scallops with roasted corn risotto and bacon jam; or exotic wild mushrooms along with a lentil stew, Yukon potato croquette, spinach and wine and mushroom jus. Chef Gómez will serve a dish from her selection prior to dessert and in this last course there will be a variety of decadent mignardises (miniature sweets).

The dinner for lovers at La Concha Resort has a cost of $125.00 per person, plus taxes and tips.

It also includes a welcome drink per person and covers the car parking fee.

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/ Wednesday, February 2, 2022

That martini you’re holding supports animal rescues Tito’s Vodka promotes local animal shelters for Valentine’s Day

T

Zoe Landi Fontana, The Weekly Journal

ito’s Vodka is releasing the second edition of their Puppy Love calendar in collaboration with local animal shelters.

To bring visibility to dogs in need of homes, the calendar features a different fourlegged friend for each month (all are available for adoption). Starting this Valentine’s Day, Puppy Love 2022 is free with the purchase of a Tito’s Handmade Vodka product on the Jetson, Ronpon, and Hórreo de V. Suárez platforms.

Additionally, participating shelters will receive a donation of $750 from Tito’s Vodka to support their rescue efforts.

“People recognize the value and importance of pet adoption. It is an act of love and a responsibility that we have as citizens. It is an honor to be part of this effort”, said brandmanager Luis Antonio Morales.

Their team of four people provides shelter, food, grooming, and medical care for 25 to 30 dogs at a time in a space lent to them by a supporter Love for dogs is in the liquor brand’s DNA. Tito of their cause. Many of the dogs they rescue Beveridge, the company’s founder and namesake, and rehabilitate are sent to other no-kill partner is a true dog-lover whose canine companion, Dojo, shelters in the states, which find them homes in accompanied him to work every day and through those communities, although late nights while he developed they would be happy to see more the smoothest vodka. Now, the of the dogs adopted locally. company pays tribute to Dojo Saraivy explained that the with its Vodka for dog People shelter is also looking for foster Program that aims to better the parents located in Puerto Rico for lives of pets worldwide.

Participating both cats and dogs. Foster-care THE WEEKLY JOURNAL spoke shelters will receive almost infinitely increases the with Saraivy Colón Arroyo, a donation of $750 number of animals that can be treasurer for the Alianza Pro from Tito’s Vodka to helped. Potential foster parents Rescate de Animales, one of this support their rescue are responsible for day-to-day year’s participating shelters. efforts. tasks, such as feeding, walking, Alianza Pro Rescate de and playing, with Alianza Pro Animales, a no-kill shelter, is Rescate supplying food, a dog celebrating 10 years of animal bed, and transport to veterinarian rescues, but after a decade of appointments. operations, even surviving Hurricane Maria, the Foster parents provide a roof and general care shelter is in need of severe structural repairs –the for the animals before they go on to find their terrain on the property is eroding and many of the forever-home. Of course, a foster parent could cages need to be replaced.

A Dog Lover

In fact,

People recognize the value and importance of pet adoption.

It is an act of love and a responsibility that we have as citizens.

-Luis Antonio Morales Brand Manager, Tito’s Vodka

decide to adopt the dog or cat that they’ve been taking care of. The adoption process starts with a home visit and a trial period so that both dog and human can make sure they are compatible.

Adoption isn’t feasible for everyone, but anyone can spread the love by donating to one of the shelters found in the calendar –helping provide food and care to many abandoned animals.

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