A crucial component of an effective government is the ability to properly forecast costs and revenues. The last decade’s worth of forecasts made by the Puerto Rican government have failed to accurately portray reality, profering a case study on how the inability to fulfill this fundamental role can cause a country to cascade into enormous debt. When the government balloons their debt, it dissolves any remaining confidence that they can back creditors, and outside entities who have a stake in the situation may step in to mitigate some of the financial problems. Paying back creditors and balancing budgets is...Read More
Author: Colin McManus
The 65th United States Infantry Regiment, known infamously as the “Borinqueneers,” displayed an amazing history of service to this country that deserves to be highlighted during this year’s Memorial Day holiday. The unit was commissioned by the United States Army in 1908 and was originally made-up entirely of Puerto Rican volunteers. Their service has spanned from World War I to modern times, and their achievements are just as expansive. During WWI, the Borinqueneers were sent to Central America on an assignment to guard the Panama Canal. This was a modest start for the 65th Infantry Regiment that did not...Read More
In many parts of the world, the first day of May is known as May Day, or International Workers’ Day. It has become tradition for laborers to gather on this day to demonstrate and protest the status of workers’ rights. In San Juan, Puerto Rico, hundreds and thousands of protesters and demonstrators gathered peacefully to make their crisis known: high tuition, too many school closings, unemployment, lower pension payments, increased economic devastation after hurricane Maria, and the continuation of “undemocratic” austerity measures. Many of the demonstrators were students from Puerto Rican schools, such as Carlos Cofino, a political...Read More
Staples of the Puerto Rican economy throughout the past decade include high unemployment (over 10%), poverty (60% of children), and insurmountable debts (the government owes $74 billion to bondholders). The inability of the Puerto Rican government to correctly forecast costs and revenues has led to budgets that are inefficient and progress the problems even further. Congress passed the Puerto Rico Oversight, Management, and Economic Stability Act in 2016, which prioritized more accurate forecasts for budgeting and a new structure for debt repayment. This law also goes by the acronym PROMESA, which coincidentally turns out to mean “promise” in Spanish. PROMESA...Read More
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