So as was expected, Puerto Rico defaulted on a debt payment for over $70 billion in outstanding debt. From the article:
Puerto Rico, whose residents are U.S. citizens, has been mired in recession for a decade and borrowed heavily to balance budgets. Despite the shaky economy, investors snapped up its debt for years thanks to generous tax incentives. The borrowing spree, however, did little to create economic opportunity on the island, and residents have steadily left for employment on the U.S. mainland, eroding Puerto Rico’s tax base.
So this problem was caused by leftist government that wanted to spend more than the economies they crippled could sustain, to buy votes of all reasons, borrowed massive amounts of money to balance their budgets. Does this sound familiar to you at all? At least some Puerto Ricans affected by this stupidity had the ability to skip town and go to the US, whether it was to find gainful employment or just move to some blue state and suck at the government’s teat there, to avoid the catastrophe. Where are those of us in the US going to go when we face this reality?
Government economic policy that is set up to make participants in any economy dependent on buying favors from the members of said governments, always end up producing pain and do little to produce economic growth. But it sure makes a lot of connected people wealthy and in turn puts a large amount of cash into the campaign coffers of the political class that has implemented this machine. Hence, despite the massive debt buyout in Puerto Rico, there was no economic benefit. Again I ask, does this all look familiar to anyone? It seems quite obvious that what we are seeing in Puerto Rico can directly be inferred as the future of many US blue states as well as the US economy in general under the Obama administration.
Back to this issue at hand. As the article points out, republicans rallied by Paul Ryan in congress are pushing legislation that would restructure Puerto Rico’s debt. My concern is that this is nothing more than a totally temporary bandaid solution, and that it will not only not fix the underlying issue, which is that these fuckers will keep borrowing to buy votes and do nothing that would fix their abysmal economic conditions, but just delay the inevitable: Puerto Rico basically asking the US tax payer to foot the bill for all the squandered money. I feel this way because of news like this. And once Puerto Rico gets what amounts to a bailout, you can bet that Illinois, California, and every other blue state out there that has the same model of borrowing so they can spend on vote buying while all that spent money does nothing to improve economic conditions in general, will all show up in DC and ask for the same.
Whatever crap congress puts together should also destroy the blue state economic model as it exists today. Without that, we are just pushing the problem out and increasing the final cost of bailing out these idiots. The blue state model needs to die before it kills the country as a whole.