Figuring out how Puerto Rico’s “mess” could have been solved before it went “viral”.
Had an understanding of how our MR actually functions these days (since all the nations of the world trade their fiat currency every day by the trillions), we would understand that deficit spending ameliorates the suffering of the people of Puerto Rico just like Detroit. Today they PR is prohibited from deficit spending since they do not control their own currency.
If that spending produced valuable assets that helped to improve the private economy, and that infrastructure spending was badly needed, then why is that not 100% beneficial?
Yet again, I submit that infrastructure spending does not actually add to our so-called national debt except by law.
“Bankruptcy prevents past mistakes from placing an intolerable burden on the future. It also enforces some measure of accountability on lenders who hand too much money to people who have no hope of paying it back.” https://www.newyorker.com/business/currency/on-puerto-rico-congress-once-again-fails-to-do-the-obvious
Show me the so-called “mistakes”? The spending would make good lives possible! The problem is that private banks and investors can never support the spending required. To make public spending on infrastructure counted as “debt” is the mistake.
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