The making of a colonial welfare state - US social insurance and public assistance in Puerto Rico

Early-twentieth-century Puerto Rican women's and labor groups advocated for public support for economically needy groups to little avail, given the fiscal limitations of the early colonial state. The exclusion of Puerto Rico from the comprehensive social welfare embodied in the Social Security Act of 1935 was rooted in U.S. Congressional resistance to statehood for selected territories. The platform of the Partido Popular Democratico (Popular Dentocratic party-PPD), which merged elements of Puerto Rican nationalism with a foreign-investment-and-export-dependent development strategy, further distanced Puerto Ricans front participation in federal welfare programs. The PPD's economic program yielded rapid initial growth followed by stagnation. Resulting unemployment and declining consumer demand led to a gradual reversal of U.S. social welfare policy toward Puerto Rico. Beginning in the 1950s, federal social insurance and public assistance programs were extended to Puerto Rico, albeit with funding restrictions not imposed on the states.