The default by the Greek government, the referendum to refuse the EU’s deal to restructure and the resulting financial chaos in Greece will have minor effects on the US economy.
President Obama said that “Greece isn’t America’s problem.” But does the US have a similar problem that could affect the economy and send a signal to Washington that things may have to change? America’s potential problem is Puerto Rico.
Puerto Rico’s Governor has stated that the territory’s $72 billion debt is not payable. What are the problems with Puerto Rico’s economy? Are the reasons similar or basically the same as in Greece—such as excessive borrowing, anti-growth policies, human and capital flight and refusal by local politicians to address their entitlement policies? Can Puerto Rico be fixed?
