Puerto Rico (The Rich Port) has given notice that the island will default on $37 million in debt due this week. This will set the stage for debt consolidation where the creditors unwillingly take a haircut.
How did such a beautiful place get into debt in the first place; simply put the politicians borrowed their way to fame. Over the past two decades the ruthless scoundrels that they are borrowed, borrowed and borrowed some more showering the people with free goodies. The problem here though is simple, the people in Puerto Rico don’t have jobs, so how could they ever pay the money back. But this was no concern to the Governors, they were only worried about their reelection.
One third – 33% of Puerto Rico’s population is on food stamps costing the United States over $2 billion per year. Puerto Rico had a higher public assistance participation rate (5.9 percent) than the national average (2.9 percent), this means that twice as many per capita receive welfare. For those who stay, rich welfare benefits provide a disincentive to work. A household of three can receive $1,743 per month in food stamps, Medicaid, utility subsidies and welfare compared to minimum-wage take-home pay of $1,159. Employers are required to provide 15 days of vacation and 12 sick days annually and a $600 Christmas bonus. Government employees make up a quarter of the island’s workforce.
A more appropriate name should be Puerto Welfare.
The Greek debacle has been the focus of late on its on again-off again debt restructuring, but that doesn’t mean that the troubles in Puerto Rico are playing second fiddle. Puerto Rico is on the hook for close to $100 billion. That is a boat load of pina coladas. Just in case you haven’t been initiated in the Puerto Rico way of doing business we bring you their number one life saver, welfare and social security. Puerto Rico is a disability fraud paradise. The top 10 U.S. zip codes tied to people receiving disability benefits, nine are in Puerto Rico.
The sharks are circling the waters in the hope of default if and when it happens. The rich island has a dark journey ahead, tourism is in the tank, the economy is in a perpetual depression, drugs are rampant and most of all the government will not do what needs to be done; cut bait.
But Puerto Rico is part of the United States and is a metaphor for liberal bastions like Illinois and Connecticut, both drowning the sea of debt. Utmost on the minds of the Puerto Rican is not the rising sea levels, but their share of the islands IOU’s. By the way, in case you didn’t notice, Puerto Rico has a population similar to Connecticut, 3,5 million or simply put a debt of $22,000 for each of its citizens. And true to form the Commonwealth’s economy has slowly reached the point of no return being sucked down by a giant whirlpool, even Captain Nemo can’t save this one.