LPA Foundation
Advisor Stephen Moore

Advisor Stephen Moore — LPA Foundation

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Sanders’ Workers’ Paradise Faces Moment of Truth In Collapse of Puerto Rico

April 18, 2016

If you want to see welfare-state socialism in action, go to bankrupt Puerto Rico. ‎Let’s hope Bernie Sanders’ voters are paying attention to what their worker paradise dreams turn into in real life.

Puerto Rico is a financial basket base with the island’s $75 billion debt now eclipsing 100% of its output. The government is already in technical default, and San Juan says it may not be able to make its next $422 million payment on May 1 and then another $2 billion payment that comes due this summer.

House Republicans are trying to rescue Puerto Rico from calamity. It is a territory of the United States and as such should not be abandoned by the feds — even though Puerto Rico is mostly a victim of its own financial and fiscal negligence and overspending.

A House bill would create a financial control board to take charge of Puerto Rico’s finances and budget affairs. This a de facto bankruptcy for Puerto Rico. Such a model ‎helped the District of Columbia ‎recover when it was in a similar financial crisis. A control board also worked well in managing Detroit’s bankruptcy. The financial control board is NOT a cash taxpayer bailout of Puerto Rico, which is what the PR government wants, as do many Democrats in Congress’s.

Read the full article at The New York Sun: Sanders’ Workers’ Paradise Faces Moment of Truth In Collapse of Puerto Rico