Fragile pension systems and the high burden of supporting the elderly drive population loss and economic decline.
Abel & Deitz 14 [Jaison R. Abel; PhD in Economics; Richard Deitz; BA in Economics; 2014; "The Causes and Consequences of Puerto Rico’s Declining Population”; U.S. Bureau of Labor Statistics"; Federal Reserve Bank of New York; https://www.newyorkfed.org/medialibrary/media/research/current_issues/ci20-4.pdf; Accessed 7-5-2023;
This troubling decline presents a host of difficulties for the island. A smaller population translates into a shrinking tax base, which in turn strains government finances. In addition, Puerto Rico is losing a disproportionate share of its younger citizens, a trend that has accelerated the aging of its population. This demographic shift adds to the burden of supporting the island’s elderly population, who tend to be poorer and more intensive users of the health care system, and puts stress on already fragile pension systems. Together, these pressures can create a cycle of economic decay and further population losses that can be difficult to break.