He's turned off the air conditioning to lower his power bill. With fewer customers, he's cut staff hours and tried to make up the lost income by raising some prices. But Puerto Rico's entrenched economic crisis is leading people to either cut their personal spending to the basics or flee to the mainland to search for jobs, contributing to the struggles of those left on the island.
"We're making every single adjustment needed," Martin said. "We have to make these decisions because if not..."
He trailed off, hesitant to complete the sentence.
Nearly 10 years into a deep economic slump, Puerto Rico is no closer to pulling out, and, in fact, is poised to plummet further. The unemployment rate is above 12 percent. Some 144,000 people left the U.S. territory between 2010 and 2013, and about a third of all people born in Puerto Rico now live in the U.S. mainland. Schools and businesses have closed amid the exodus. The population of 3.5 million is expected to drop to 3 million by 2050.
The government has tried to boost revenue by hiking the sales tax to 11.5 percent, higher than any U.S. state, and closing government offices. Its debt-burdened power utility already charges rates that on average are twice those of the mainland, and is under pressure from bondholders to raise them higher.
A $58 million bond payment due Saturday went unpaid. If defaults continue, analysts say Puerto Rico will face numerous lawsuits and increasingly limited access to markets, putting a recovery even more out of reach.
Carmen Davila, a 65-year-old retired truck driver and window dresser, recently withdrew her money from the bank amid fears the government would shut down and seize it.
"Things are happening in Puerto Rico that we've never seen before," Davila said. "Puerto Rico has always had its ups and downs, but you could handle it. This now is serious."
The exodus of people from the island, mainly to central Florida and New York, is palpable. Nearly everyone knows someone who has left, or plans to do so soon. The impact of the departures, and the decline in spending of those remaining, is obvious.
Crowds have thinned at restaurants and movie theaters; families like Davila's have cut back on summer excursions to beaches and mountains; and even San Juan's notorious traffic jams have dwindled somewhat.
Jose Hernandez said his commute into San Juan's colonial district, once about two hours, now takes roughly 20 minutes.
The 62-year-old lottery vendor would join the departure, too, if not for the grandchildren he helps support — even though he recognizes doing so would only add to the trouble.
"Fewer people means there are less of us to help boost the economy," he said. "This is the worst I've seen it. ... There are no people on the street. They've disappeared."
His lottery business has fallen by nearly 10 percent, forcing him to keep grocery shopping to the basics and to cut back on luxuries such as movies and restaurants.
"What you used to do three or four times a month, now you only do once," he said. "You cut out a lot of things."
Davila said her monthly $600 Social Security payment isn't enough to cover expenses. She and other relatives are pooling their money to buy back-to-school supplies for her 12 grandchildren. She cares for them while her own children work and study, but she yearns to move back to New York.
"We don't have money to live," she said.
A list of cost-cutting measures proposed by a group of hedge funds that holds $5.2 billion of Puerto Rico's debt has riled islanders: laying off teachers; cutting Medicaid benefits; and reducing subsidies to the main public university.
By DANICA COTO
In this Wednesday, July 29, 2015 photo, the Puerto Rican flag flies in front of Puerto Rico’s Capitol as in San Juan, Puerto Rico. Nearly 10 years into a deep economic slump, Puerto Rico is no closer to pulling out, and, in fact, is poised to plummet further. The unemployment rate is above 12 percent and tens of thousands have migrated out of the island. (AP Photo/Ricardo Arduengo)
Misery deepens for those in Puerto Rico who can't leave
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