There a saying in Spanish when you wish to buy something and it’s too expensive you say, “La economia esta mala para estar comprando”, this means “the economy is bad to buy things”. For it to start off as a saying to become a fact in Puerto Rico is shocking. As I watch the news with my mother, it devastates me to see the crisis Puerto Rico has acquired. Everywhere they speak about Puerto Rico you hear the debt owed go higher and higher. As of recent, it is estimated that Puerto Rico owes more than 72 billion dollars of bond funds (Long,1). Slowly the value of my homeland is decreasing and my family, who still lives in Puerto Rico, is suffering the consequences of the economic instability of the land. There have been a lot of budget cuts, higher
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Since they were still a developing territory of the United States, the government began to obtain municipal bonds from bondholders and investors who invested in their land. According to New York Times article, “How Puerto Rico Debt Is Grappling with a Debt Crisis,” for many years Puerto Rico has been borrowing money “by issuing municipal bonds, using the funds to compensate for declining government revenue and prevent deep cuts in services and layoffs of public workers” (Walsh and Moyer,1). However, Puerto Rico has taken more money than they have in their treasury. As a result, they can’t afford to pay the debt and maintain the public services like health care and schools for the residents. The recent governor, Alejandro Garcia Padilla, has also been accused by the people of Puerto Rico of wasting money on non-important things and not dedicated in paying the debt. Recently, he “suspended nearly $2 billion of debt payments that Puerto Rico was supposed to make. It was not the first large payment Puerto Rico has missed in recent months-the island skipped a $399 million debt payment due May 2” (Walsh and Moyer,2). It is said, he claimed that he preferred to paid off the government workers and residents of Puerto Rico than to pay the bonds. Also placed one of the highest Sale and Used tax from 6% to 10.5%; in attempt to get more money from the citizens and pay the dues (Universion News). Some may argue that the governor has made a good decision and placed people needs first and others argue that he’s slowly destroying Puerto
Since they were still a developing territory of the United States, the government began to obtain municipal bonds from bondholders and investors who invested in their land. According to New York Times article, “How Puerto Rico Debt Is Grappling with a Debt Crisis,” for many years Puerto Rico has been borrowing money “by issuing municipal bonds, using the funds to compensate for declining government revenue and prevent deep cuts in services and layoffs of public workers” (Walsh and Moyer,1). However, Puerto Rico has taken more money than they have in their treasury. As a result, they can’t afford to pay the debt and maintain the public services like health care and schools for the residents. The recent governor, Alejandro Garcia Padilla, has also been accused by the people of Puerto Rico of wasting money on non-important things and not dedicated in paying the debt. Recently, he “suspended nearly $2 billion of debt payments that Puerto Rico was supposed to make. It was not the first large payment Puerto Rico has missed in recent months-the island skipped a $399 million debt payment due May 2” (Walsh and Moyer,2). It is said, he claimed that he preferred to paid off the government workers and residents of Puerto Rico than to pay the bonds. Also placed one of the highest Sale and Used tax from 6% to 10.5%; in attempt to get more money from the citizens and pay the dues (Universion News). Some may argue that the governor has made a good decision and placed people needs first and others argue that he’s slowly destroying Puerto