This podcast episode examines the "rum wars" between the Virgin Islands and Puerto Rico, sparked by the Virgin Islands government's move to lure Captain Morgan away from Puerto Rico in 2008. The rivalry stems from a congressional scheme to aid the territories with tax incentives, which has inadvertently benefited large liquor companies and driven a wedge between them. While the rum industry provides substantial revenue for the Virgin Islands and Puerto Rico, the episode exposes the excessive concessions and subsidies granted to companies like Captain Morgan, which have escalated into a costly "race to the bottom." The episode also highlights the power of corporations and the challenges faced by territories like the Virgin Islands and Puerto Rico in navigating federal funding and economic development.
