Remember Puerto Rico?
This summer, the economic woes of the U.S. territory were the stuff of headlines — which told of an unsustainable debt burden resulting from slow economic growth, a weak labor market, population outflows and poor fiscal management.
The headlines soon faded, but all the problems remain, which is what you’d expect given the government’s $72 billion debt, which it cannot realistically service.
Potential progress, however, has at last been made, as the Obama administration has come up with a plan for the commonwealth that has a lot to recommend it. The plan has three basic parts: bankruptcy, oversight and help for the less-advantaged citizens of Puerto Rico.