This week the Puerto Rico government declared its intent to default on “all or most” of its $72 billion dollar debt.
Puerto Rico Governor, Alejandro García Padilla, a longtime avid supporter of President Barack Obama, called the island nation’s financial crisis a matter basic math.
In addition to his role as governor of Puerto Rico, Padilla is also a prominent member of the American Democratic Party.
Puerto Rico’s current crisis has been some time in the making. For decades the island nations embarked on a progressive model of “spend now and pay later” form of government.
As the size of the Puerto Rico government inevitably expanded, its private sector contracted and so too did the tax base necessary to pay for all of the nation’s exorbitant public sector spending. And as its debt rate increased, so too did its poverty and crime rates.
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