Puerto Rico cannot print its own money, but when the crisis started back in 2006, we had AAA+ credit low debt. So Government use it to keep the economy going and keep the promises they made to get elected. PR literally tried to borrow its way out of the hole it found itself when the Electronic assembly industry left back in 2006. That does not work.
This is the best explanation about PR situation that I ever heard. This is the kind of stuff nobody teach in school. In PR you have 2 main political parties; one that support statehood, and one that support the present situation (+ -). Both parties are pirates of the US and had never really had PR at heart and only had care to fill their pockets. In PR last election there was a real option for change, but fear was in fuse in the mind of the people and that option was lost; now they current politic party is puchin PR to become part of an even worst brokenn US economy..
I think that the lenders are more than "part of the blame." They saw this coming years ago and planed for this. It's their MO. Restructuring only delays the inevitable - inability to pay. Very informative, thank you.
necessity is the mother of invention - humans didn't start out smart - they learned to be smart - if ever there was an argument for independence for Puerto Ricans in Puerto Rico, it is now
Mr. Schiff, your mostly right about your assessment but I don't understand this abusive thinking of lowering the minimum wage. I live here in this beautiful and lovely Island and as you were saying it is very expensive to live here compared with the US. How do you think people can live here earning less money than the minimum wage? That is such an absurd and corporative capitalistic view. What has happened to us is that we have subsidized in the Island the most multi billionaire corporations and pharmaceutical industries of the US for many, many years without them paying a cent in taxes to our government while paying minimum taxes to the US. That's also why we can't get out of this territory condition. In the past few years the multinationals have started paying a 3% due to our dire situation but that has not been enough. If this lucrative multinational corporations and industries would pay their fare share or at least 5% compensating us a bit for all the years that they were not taxed, we wouldn't be in the situation we're In at the moment. We're also being utilized by the US as guinea pigs for the coming bankruptcies of several US states that are experiencing fiscal troubles. The sad part of it all is that if we could have had the help of the US to move our economy and create new good paying jobs and to restructure our debt we wouldn't have to go thru this situation . We will now add a million a week in costs for the Promesa board and the many years of legal battles and expenses that are coming our way to the current debt. But I suppose the idea is to take control of all our assets and lands. Make us all move out of the Island and just leave a few people here to work as slaves for the multimillionaires who will use the Island as a beautiful special retreat. . Will see how we can handle this on our backs and not allow to be forced to move to the States by not finding jobs and this over taxation coming our way. We love our Island too much! Sad part is that, if you leave, due to the housing market you have to leave empty handed. You can be sure none of the Puertorrican's living in the States at the moment moved because they wanted to, they moved looking for a job that had lost or a better job with higher pay so that they could have a prosperous future for their families. Give them the same opportunity and salary in PR as in the States and they will be back in a blink of an eye and all the debts will be easily paid accordingly.
The Awareness Revolution yes but exctly HOW will the poor workers pay their bills on less than minimum wage in PR with the inflated cost of living. THAT is the disconnect with the practicality of what ure saying
There are so many problems with your argument which can be summed up by your faulty logic in using a static economic model vs. the dynamic model for you analysis - I live in PR and I see what's going on here
Cause I'm tired of explaining one and the same every day, here are articles on why min. wage creates unemployment: goo.gl/HFRs27, goo.gl/OW9kTr. Educate yourselves.
What he is saying is that investing in Puerto Rico needs to be cheap either through lowering costs for business (almost impossible) or to provided more incentives (lower taxes, lower entry barriers, etc..)
Very good analysis.
Very good break down! 👏🏾 Now I say just play the tape in front of congressional leaders...
Puerto Rico cannot print its own money, but when the crisis started back in 2006, we had AAA+ credit low debt. So Government use it to keep the economy going and keep the promises they made to get elected. PR literally tried to borrow its way out of the hole it found itself when the Electronic assembly industry left back in 2006. That does not work.
This is the best explanation about PR situation that I ever heard. This is the kind of stuff nobody teach in school. In PR you have 2 main political parties; one that support statehood, and one that support the present situation (+ -). Both parties are pirates of the US and had never really had PR at heart and only had care to fill their pockets. In PR last election there was a real option for change, but fear was in fuse in the mind of the people and that option was lost; now they current politic party is puchin PR to become part of an even worst brokenn US economy..
plazam10 Actually, Puerto Rico has 3 major political party. State hood, Stay the same and Independent.
Restructuring debt is a temporary solution to a permanent problem.
THE NAKED TRUTH
😡😡😡😡😡😡😡😡😡😡😡😡
Classic gov't, Wall Street, Banki,mng corruption, greed, stupidity & arrogance. "We're from the gov't and we're here to help". Famous last words.
You should be the Governor of Puerto Rico!!!
where is the rest of this podcast?
Minimum wage is a job killer everywhere.
I think that the lenders are more than "part of the blame." They saw this coming years ago and planed for this. It's their MO. Restructuring only delays the inevitable - inability to pay. Very informative, thank you.
Obviously the minimum wage is not a factor in the economic crisis; besides this the rest of the analysis is fine.
Independece si the best option!!!!! But ignorance si to high here.
necessity is the mother of invention - humans didn't start out smart - they learned to be smart - if ever there was an argument for independence for Puerto Ricans in Puerto Rico, it is now
Depends on who will be the president.
Congress decides on the question of annexation of a state, not the president.
Im talking about the president of Puerto Rico, if it gets independence.
Mr. Schiff, your mostly right about your assessment but I don't understand this abusive thinking of lowering the minimum wage. I live here in this beautiful and lovely Island and as you were saying it is very expensive to live here compared with the US. How do you think people can live here earning less money than the minimum wage? That is such an absurd and corporative capitalistic view. What has happened to us is that we have subsidized in the Island the most multi billionaire corporations and pharmaceutical industries of the US for many, many years without them paying a cent in taxes to our government while paying minimum taxes to the US. That's also why we can't get out of this territory condition. In the past few years the multinationals have started paying a 3% due to our dire situation but that has not been enough. If this lucrative multinational corporations and industries would pay their fare share or at least 5% compensating us a bit for all the years that they were not taxed, we wouldn't be in the situation we're In at the moment. We're also being utilized by the US as guinea pigs for the coming bankruptcies of several US states that are experiencing fiscal troubles. The sad part of it all is that if we could have had the help of the US to move our economy and create new good paying jobs and to restructure our debt we wouldn't have to go thru this situation . We will now add a million a week in costs for the Promesa board and the many years of legal battles and expenses that are coming our way to the current debt. But I suppose the idea is to take control of all our assets and lands. Make us all move out of the Island and just leave a few people here to work as slaves for the multimillionaires who will use the Island as a beautiful special retreat. . Will see how we can handle this on our backs and not allow to be forced to move to the States by not finding jobs and this over taxation coming our way. We love our Island too much! Sad part is that, if you leave, due to the housing market you have to leave empty handed. You can be sure none of the Puertorrican's living in the States at the moment moved because they wanted to, they moved looking for a job that had lost or a better job with higher pay so that they could have a prosperous future for their families. Give them the same opportunity and salary in PR as in the States and they will be back in a blink of an eye and all the debts will be easily paid accordingly.
Wishfulthinking Mom your dumb
The Awareness Revolution yes but exctly HOW will the poor workers pay their bills on less than minimum wage in PR with the inflated cost of living. THAT is the disconnect with the practicality of what ure saying
There are so many problems with your argument which can be summed up by your faulty logic in using a static economic model vs. the dynamic model for you analysis - I live in PR and I see what's going on here
Cause I'm tired of explaining one and the same every day, here are articles on why min. wage creates unemployment: goo.gl/HFRs27, goo.gl/OW9kTr. Educate yourselves.
I'm living paycheck trough paycheck and this guy is literally saying Puerto Rico needs to lower the minimum wage,wtf is wrong with him jesus.
Char Aznable your fuckini dumb
Nelson Garcia *You're fucking dumb.
Eternal Void you’re fucking dumb
What he is saying is that investing in Puerto Rico needs to be cheap either through lowering costs for business (almost impossible) or to provided more incentives (lower taxes, lower entry barriers, etc..)