Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Monday, July 27, 2015

More Puerto Rico Updates

Ismael, another friend I made on the island. We rode through a trail in the town of Cabo Rojo 


Looking out towards the inland bay at Cabo Rojo






I'm back in town now, after two weeks in Puerto Rico. I hope I can plan my next trip over there soon because I really enjoyed my visit and the time I spent with my cousins and other family members. I'm from Puerto Rico, but I have no skin in the game as to what life is like for people who live on the island day in and day out.  I left the island at the age of 5 through no fault of my own; I was a kid and my parents wanted/needed to move. This trip gave me a glimpse at what it would have been like if I had stayed.

 Everyone here says that it's not easy to make a living on the island. There is a shortage of jobs and a lot of laws have been passed to keep manufacturing down and to keep individuals from empowering themselves. However, that doesn't mean it's impossible to live here. For as much strife and financial hardship as there seems to be this is a place where every morning you can wake up to good cup of coffee and million dollar views. Everywhere you look there is a mountain on the horizon to climb. The mountainsides are spattered with the reds of the Flamboyan trees and other hues from other fruit trees as well as little wooden houses scattered throughout. Fruit here is sold at fruit stands and for a few bucks one can walk home with about ten pounds of locally grown bananas, mangoes, papayas, soursop and other fruits. This place wouldn't be an expensive to live in for someone who owns their own business abroad or collects a retirement check there. It is expensive for most locals, even those who have college degrees but who do not have contacts in the business sector that can get them jobs. 80% of Puerto Rican households make less than $40,000 a year, and Puerto Ricans pay an 11.5% sales tax on all goods, the highest of any U.S owned territory. Puerto Ricans also pay income taxes to the government of Puerto Rico, sometimes at a higher rate than the Federal income taxes paid in the rest of the U.S. The good majority of Puerto Ricans have to settle with $7.25/ hour, or the Federal minimum wage. Unless someone is a fruit vendor or a farmer, they are subject to paying annual income taxes which is pretty much the majority of Puerto Ricans. Due to the high tax demands on individuals who own businesses, there are many cash in hand transactions and many places will not accept credit or debit cards. Many have to do this to make a profit otherwise all of their profits will go to paying taxes to the government and to merchant fees. While this may not paint a complete picture as to what it must be like living over there, it does give us a small window to peek in.

Riding a bike in Puerto Rico is awesome. During my stay there I rode on the southwest side of the island, to and from my relatives houses and into the city centers of San German and Sabana Grande. The distances aren't very far between towns, but the elevation and gradients make up for the short distances. Some of the roads up the mountains average at 8% incline grades, which sections as steep as 25% or more. Even the roads leading to and from the city centers are steep. Here are a couple of rides that I did while I was there. Check out the elevation profiles versus the distance ridden.








My goal is to one day be able to live in Puerto Rico with my family with complete financial independence. It's an ambitious goal to say the least and a lot of Puerto Ricans don't or can't make it a reality. I can't let it go without at least trying, since ever since my trip I haven't stopped looking back. The palm trees and mountains of Puerto Rico go in harsh contrast to the hot, 100 degree ocean-less landscape that I am currently living in. Maybe it's time for this prodigal son to finally come home.

Saturday, July 11, 2015

I took my bike to Puerto Rico

The Porta Coeli Monastery is the oldest church in the western Hemisphere in one of the oldest founded settlements of the New World.
 Some of my readers may have heard things about Puerto Rico, some good, some not so good. I 'm here to clear the air and misconceptions that anyone reading this article might have, whatever those might be. Furthermore I want to share the awesome experience that I have had cycling on the west side of the island, climbing gradients that would even make Vincenzo Nibali wince in pain.


Puerto Rico has been in the news lately, for all the wrong reasons. The alleged default on the national debt of the island has many people calling Puerto Rico the "new" Greece. I'm not going to bore you with the politics of the island and of those abroad, because this is a bike blog and I want to talk about bikes. Essentially, what people are hearing on the news is a bunch of hyped up, sensationalized rhetoric being used as a platform for scoring political points by opposing parties. People can still shop and eat here and even have some money left over for recreation. Puerto Rico is nowhere near 3rd world country status or anywhere near where Greece was when it needed austerity measures. Are people leaving Puerto Rico in search of better opportunities? Sure they are, as is everyone everywhere who thinks the grass is greener on the other side. For all the negative news about Puerto Rico's economy there hasn't been a national discussion about the cause for Puerto Rico's financial woes or about whatever happened to the national referendum that never left the U.S congress's desk. For those who wish to know more about that subject, research the Jones Act of 1920 as well as all the import, export and trade restrictions and tariffs being laid on the island. Look into how many major corporations like Wal-Mart and others have benefited from these laws by not having to report all of their earnings in Puerto Rico, getting tax breaks and exemptions that businesses on the island do not receive and killing the local economy by artificially lowering their prices to the point that small businesses can no longer compete.  I'm done talking about it, let's talk bike riding.


As with the hyped up news about the economy, several sources told me I had a death wish for wanting to bring my bike to the island and ride around during my stay. The roads around the towns of San German and Sabana Grande are mostly rural, winding, steep and sometimes feature pedestrian and horse traffic. Some drivers might be a little more aggressive on the roads than others, and it might not be a good idea to ride during peak traffic hours. However, the cycling is the best riding that I have done anywhere, period. I'm surprised a Puerto Rican hasn't won the Giro D' Italia yet, because the climbing profiles out here feature grades from 17% to 25% and even more in some places. For the cyclist who loves to climb, this is your paradise.

See those mountains in the background? This is real climbing out here. 
Even the roads in the center of town are steep
 I rode with my cousin during my second day of visiting. We wound through plantain fields and small city districts. It was  really neat to have the mountains as a backdrop the whole time I rode. This made for some really cool pictures.


What a priceless view in such a beautiful place! My cousin Waldito on the right hand side of the photo.

This is the first blog post I write while still abroad. My stay in Puerto Rico is not over yet, and I will be doing more riding as well as documenting my rides before I leave. So far, the experience I have had has not disappointed me. Stay tuned for more blog posts about Puerto Rico and more informative posts.

Tuesday, February 10, 2015

Cycling's Cost of Entry

Getting into Cycling:
Cheap, Expensive or Both?



When looking at the kinds of bikes professionals use (and I mean the guys we actually see on TV, not riding around the neighborhood on Sunday mornings), many formulate preconceived notions that cycling is a rich man's sport, similar to playing golf and yacht racing. The truth is that there is a slight bit of truth, however small it may be, to that stereotype. It's a view that often gets compounded and reinforced by the bicycle industry itself. Most bikes seen in the Tour De France are actually rebranded custom made bicycles that are not available in stores. The ones that are, however, can sell well over $10,000 USD. Does that mean that cycling is unattainable for someone that isn't a CEO of a fortune 500 company or a trust fund beneficiary?


Let's discuss this topic not as the cost of entry into competitive cycling, which can be an endless and upside down venture. Rather, let's talk about whether the average kid on the block or adult can get into a decent bicycle at a reasonable cost.  


Consider the image that competitive cycling has left on the average person. Competitive cycling, at least here in the U.S, has no development leagues and no academic support to promote the sport. For example, there are no cycling teams in high school and no community groups that teach people about bicycle racing. Although USA cycling may call itself a development program, it's not a program where just anybody can participate. There are membership dues, racing fees and equipment costs that are not covered by this organization. In addition, to state things plainly, USA Cycling is behind on the times in regards to issues like racial and economic diversity among it's members and granting female athletes equal opportunities for competition*.  Let's also point out that the most notable athlete to come out of USA Cycling, Lance Armstrong, was the biggest cheat and liar of them all. Meanwhile other riders with real talent, like Colombian cyclists, have been largely ignored for about 20 years until the recent crackdown on doping has forced the cycling community to recognize where the real talent is. 


Does that mean that cycling is not for the masses? Does that mean we should all just buy our bikes from Wal-Mart and quit trying to compete? As things stand, many of us will be excluded from competitive cycling simply by default. But that doesn't mean that our passion for cycling should end there. Should someone tell their kid who is into basketball they shouldn't play because they are too short to compete? The same line of reasoning can be applied for someone who is into cycling. Maybe our pockets aren't deep enough to afford the equipment and training that would get us to compete on a professional level. So is there a happy medium in regards to all of this?


We can find solace in knowing firsthand that getting into a decent bicycle is attainable for the majority of people on a real middle class income. If a single person makes above $25,000 a year, for example, there is no reason why they can't afford a bicycle between $300 and $800. Let's discuss a price comparison between common modern day gadgets that most people buy and the cost of getting into cycling for each respective item. 


Consider the smartphone. It is not a necessity to own a smartphone, however the majority of people living in the U.S now own one. Let's consider some of the prices for these types of phones.

The Samsung Galaxy S5: $599.00
iPhone 6: $649.00 to $749.00
LG G3: $699.00

Now let's see what types of bicycles someone can buy new for about the same prices

Fuji Ace 24 youth road bike: $439.00
Mercier Kilo Track bike: $399.00 to $449.00
Motobecane Fantom CX: $469.95
Motobecane Mirage Pro: $549.00
Motobecane Boris X5 Fat bike: $599.00
Motobecane Gran Tourismo:$699.00
Motobecane Super Strada: $799.00

Some might say that they don't pay full retail price on their smartphones. How about on game consoles? Let's compare the cost between game consoles and the cost of respectably priced bicycles.

Playstation 4:$399.00
Xbox One: $349.00
Wii U: $300.00 to $360.00

Let's see what kinds of bicycles we could buy for the price of a game console

Mongoose Dolomite Fat bike: $212.00 to $250.00
Windsor Track bike: $279.00 to $299.00
Gravity Deadeye Fat bike: $299.00 to $399.00


Sometimes we might think that a good bicycle is just not affordable, however, on reviewing some of these prices we might just be prioritizing our gadgets like phones, games and tablets over our fitness. I included the Mongoose Dolomite in my comparison because although it is sold at Wal-Mart, it has been proven to be a real bang for the buck bicycle in terms of being a ridable bike and in terms of quality. In addition to the bikes listed, there are thousands of lightly used bikes sold locally and through online classifieds that are of good quality and in some cases professional quality. One just needs to know where to look. 


I know that what I am saying might not be enough to satisfy someone who is really talented at cycling but cannot afford the best equipment. I think those who would still like to compete but can't afford to do so in the main arena should organize themselves in their communities and hold non-sanctioned races with other low to moderately priced bicycles. There is no law forbidding people getting together for competition, and this includes cycling. There is more power in numbers, and when people get together, others will take notice and follow suit. When a large number of the overall cycling population starts competing outside the establishment, then organizations like the UCI and USA Cycling will have to take notice and start making concessions for those who they left out of their inner circles.


In conclusion, in overall terms of getting a durable bicycle, the cost of entry into cycling is attainable to most of us. It is mostly up to us to see the half glass full and take advantage of this to become good cyclists.

*Other source material for this topic can be found in the following media links.

The Guardian
The Daily Camera