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The model behind Operation Bootstrap emphasized the state as a catalyst for local economic production. Internal Revenue Code, U.

Under Section of the U. The relationship between the two included unlimited access to the market of goods, labor, and capital.

Washington: Government Printing Office. Though this growth was ificant, equally important were the ripples it sent across other sectors of the economy.

Many of these initial projects failed, but enough succeeded to prove investing in Puerto Rico was a potentially very profitable opportunity. These corporations were then able to capitalize on the lower costs of labor on the island, which further improved their bottom line and made doing business in Puerto Rico even more attractive.

Fast Facts About Puerto Rico

These early attempts at spurring growth in manufacturing went on to influence the expansion of other sectors of the economy. Operation Bootstrap was fundamentally about modernizing the Puerto Rican economy; because the government understood that this would only be possible through foreign investment, much of it involved providing tax exemptions to American corporations who set up shop in Puerto Rico.

Among the most ificant changes was the increase in Puerto Rican migration to the United States in part, because of the midels of the two economies. Bythe 2, model establishments employedPuerto Ricans, with an average of Federal corporate tax exemptions had been in place as far back as the Foraker Act of Inthe United States Department of Commerce estimated that the 1, manufacturing establishments okinawa escort Puerto Rico employed 55, Puerto Ricans, with an average workforce of Accordingly, the government invested in many of the early industrialization projects, modes included light industry factories like glass and paperboard puertorican.

Economic growth influenced other social and cultural changes in Puerto Rico.