Part 6/10:
As Puerto Rico's economy began to collapse in the late 2000s, the government turned to bonds to finance its operations. However, a combination of unmanageable debt—driven by predatory lending practices—and austerity measures led to catastrophic results. U.S. Congress ultimately imposed the PROMESA act, establishing an unelected Fiscal Control Board known locally as "La Junta," which drastically cut funding for essential services.
The austerity measures imposed by La Junta resulted in significant cuts to education, healthcare, and infrastructure while prioritizing repayments to bondholders, further entrenching the island in a cycle of poverty. Public services deteriorated, leading to social unrest as residents faced increased hardships.