We talked about financial crisis of Puerto Rico in last class. The summary and my opinion are as follow.
1. Summary
Puerto Rico is called “America’s Greece”. Because it is a crisis of the defaults. Puerto Rico paid back 💲645 million of general obligation bonds as well as 💲415 million for bonds associated with its troubled electric utility – known as PREPA. It also managed to pay back a short-term bank loan of about 💲245 million. Puerto Rico was able to pay the debt, but borrowed new money immediately. Alejandro Garcia called it “death spiral”. Puerto Rico is petting Congress for the ability todeclare bankruptcy.Many residents are moving to the mainland U.S. in serch for better job opportunities, which futher diminishes the tax base and makes it harder for Puerto Rico.
2. My oppinion
I can’t understand that a country goes bankrupt. For example, it is like Greece. Besides, Puerto Rico is an American autonomous district. The United States is not in a crisis of the bankruptcy. I can’t also understand that autonomous district goes bankruptcy, however the country the autonomous district is belong does not go bankruptcy. Why does not the United States support Puerto Rico? I think that Puerto Rico should go bankrupt to leave a death spiral. If it goes the same, economic disparty of the mainland and it of the island continue opening. I hope that this problem is solved early.