Current Events

Question 1

Why is Puerto Rico in so much debt?

Answer 1

• Their government has been spending nonstop for decades, and now they finally have to pay the piper.
• they’ve never gone bankrupt before now, so they aren’t as bad as Greece.
• plus, they don’t have a safety net like Greece has with the Eurozone. No one is going to bail them out or loan them money.
• also, unemployment is high there, so people are leaving the country (fewer people contributing to the economy)
• they’re also in the middle of a drought .