Puerto Rico needs fair treatment | TheHill

Puerto Rico is not requesting, and should not get, a bailout. What Puerto Rico needs is fair treatment from the federal government as one component of a recovery package. On the island, fiscal adjustments are leading to economic contraction, emigration, reduction in tax revenues and the need for further fiscal adjustments. The federal government is contributing to this downward spiral because of discriminatory policies in several areas such as the bankruptcy law, the Jones Act and Medicare regulations

What Puerto Rico needs is economic growth. The Republic of Ireland has a larger fiscal deficit than Puerto Rico and its public debt as a percentage of the economy is higher. However, Ireland issues government debt at 3 percent rates, while Puerto Rico has difficulty placing debt at 10 percent. Ireland’s debt is investment grade because its economy is growing at nearly 4 percent a year, while Puerto Rico’s economy has been either contracting or stagnating since 2006. Immigrants are moving to Ireland, while Puerto Rico’s population is declining at a rate of approximately 1 percent per year.

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