Puerto Rico, seized from Spain after the Spanish-American War of 1898, has amassed debt that is nearly half that of California’s for a population that is less than one-tenth the size.Textbook example of the power of bad incentives. It's Other People's Money, so why care about it?
The economy, meanwhile, faces big structural problems. Sprawling bureaucracy and high electricity costs stunt business investment. Tax evasion runs rampant. Unemployment is high, at 12%, and fewer than half of all civilians are in the labor force, compared with around 63% on the mainland.
Economists say a bloated welfare state discourages work—the share of the working-age population on disability is nearly 50% higher than in the 50 states —while a minimum wage that is high relative to productivity and local income reduces job opportunities for young and low-skilled workers.
Monday, June 29, 2015
As goes Greece, so goes Puerto Rico, according to the WSJ;
Why should the U.S. care about Puerto Rico, if they didn't care about us?