The financial crisis in Greece is one of the most controversial situations of our modern era. Created by a combination of fund mismanagement and corruption in the form of tax evasions, Greece ended up simply spending much more than it could recuperate. By seeking further funding from investors, and still finding itself unable to afford repayments, Greece went into a default. In 2010, the European union gave Greece two separate bailouts in the form of of €110bn, and another of €109bn in 2016. Despite this, Greece could still not save itself from its ever increasing debt, and now the country is facing the worst alternative possible. Having to surrender gold, properties, and other assets such as utilities which are the life-blood of managing a country. But, what does this have to do with Puerto Rico? The answer is... everything.
Puerto Rico is one of the last bastions of colonialism in the world. A nation that is owned by a super-power, their citizens are at the mercy of the United States, and their government is at the whims of investors. Yet, it wasn't always like this for Puerto Rico. The island used to be a tax-haven for large corporations and the pharmaceutical industry, this status lasted until the mid 90's in which the federal government ruled that it was too much and started cutting back on the exemptions. Many large corporations fled the island seeking places where they could run their companies for cheap; needless to say that Puerto Rico wasn't able to recuperate from this blow, at least not in a conventional manner.
In order to recoup their losses, Puerto Rico began to issue bonds in order to fund all of their sectors. Investors seeking a large payout quickly began dropping money on the little island. Meanwhile, the island's government continued to spend the investments without developing proper tax-reforms which would ensure a way to repay the bonds. After a few years, the situation got out of hand, and the government began to cut from public agencies. Schools closed, public workers were fired, agencies were shut down, and the senate continued to increase their own salary. A combination of corruption, lack of revenue, and abusive laws that suffocated the island, ensured the situation would not change in the foreseeable future. Eventually, the debt became $70 billion, and the United States dealt a crushing blow to the island nation by denying a debt forgiveness.
But, how could the United States government get away with this? After all, didn't they forgive Detroit's debt just a few years prior? The answer is simple, Puerto Rico does not enjoy the same benefits that come with statehood. Puerto Rico is a colony, a territory to be disposed of at the whims of their overlords, an island to be used and abused by their masters. This is simply a case of outliving their usefulness. Now, the senate determined that a Financial Control Board was the only alternative to saving the country, even if it's at the cost of its people. Because of this, Puerto Rico is experiencing a mass exodus of their citizens. Young and old people are leaving the island in flocks, and moving to the mainland. This is further crippling the economy by reducing the amount of working age people; additionally, the 11% unemployment rate continues increasing, and things start looking truly dire for the island nation. At this rate, there is almost zero probability that Puerto Rico will not end up in a situation like Greece.
The Financial Control Board is asking the nation to cut funding in government. Keeping this in mind, the corrupt elite in Puerto Rico have made further cuts in education, health, and basic human rights. In the meantime, the Puerto Rican senate keeps voting for maintaining their salaries and benefits the same. New labor reforms are being passed which are strictly anti-worker, and the middle-class has all, but vanished from the island. Poverty rules the streets, crime has seen a steady increase as murder become a common everyday event. Puerto Rico is in the midst of experiencing a literal death spiral and nothing can seem to stop it.
If the situation continues on this path, Puerto Rico will be left with no alternative, but to start sacrificing its assets to appease their payments. Similar to feeding wood to a fire, once Puerto Rico gives up their austerity and ability to run itself, the island will inevitably end up at the hands of investors seeking only to deepen their wallets. An unavoidable catastrophe of crime, and corruption will destroy the nation from within, and leave millions destitute. At this point the only thing that could truly save the island is its debt being forgiven, but that will only happen if Puerto Rico sacrifices the small traces of independence it has. For if it seeks to separate from the union as Greece did, the only ones who will benefit are the investors, who will are to inherit the island...
Sources:
http://money.cnn.com/2016/05/12/investing/puerto-rico-debt-crisis/
http://policia.pr.gov/informe-preliminar-de-asesinatos/
https://www.nytimes.com/2016/10/15/business/dealbook/puerto-rico-financial-oversight-board.html?_r=0
http://anonhq.com/final-pillage-greece-surrender-gold-real-estate-utilities-exchange-debt-austerity/
http://www.telegraph.co.uk/finance/financialcrisis/9334170/How-Greece-has-got-itself-in-this-mess.html
The position that Puerto Rico is in does indeed suck but it is kind of their own fault. The citizens have had many chances to vote on becoming the 51st state in the United States - each time it has been faltered by the citizens.
http://www.huffingtonpost.com/2014/02/12/puerto-rico-statehood-resolution_n_4777128.html
The most recent vote I could find on statehood occurred in 2014 and it was nullified by the citizens via blank ballots on the two part question posed to them. This blank ballot on the second part caused the votes to fall to the denial side of the equation.
Had they voted to become the 51st state in the United States then yes, they would have qualified for benefits of a state (such as at least some debt forgiveness like Detroit received).
I concur my good sir, in fact are you aware that we are finally eliminating the possibility of remaining in the status quo? We have a new election coming up this summer that will finally determine the ultimate fate of Puerto Rico. Now for the first time in history, we either become a state or an independent nation!
That is awesome. Personally, I welcome the island nation into the Union. We need a shake up of politics to get anything different than what we have had for the last however many years since we became a two party system.