Will Puerto Rico’s Financial Crisis End or Continue?

A deadline has been set for Puerto Rico to pay off its debts which is their general obligation bonds interest due on the 1st of May. However, speculations are spreading like wildfire claiming that if a bill is not passed to support Puerto Rico filling for bankruptcy, then it might not be able to survive.

In light of the recent talks in the U.S. Congress regarding the bill supported by Speaker Paul Ryan and sponsored by Natural Resources Chairman Rob Bishop to help Puerto Rico, which is a U.S. territory, issues rose whether it is a bailout for the island or not.

The Hill reports that the image that the legislation is showing to the legislators is leaning towards opposition. "If you're going to do something, the bill might be a halfway decent bill," John Fleming said as per the publication. "I've got to get it straight on whether it's better to do a bill or simply let the process play out under existing law," he added.

The May 1 deadline according to some is too soon for economic reforms to be played out, the news agency reports. "We were hoping for May 1st," Minority Leader Nancy Pelosi said as per the news outlet. "I don't know if that's still possible," Pelosi adds.

As the issue comes into blooming, migration of Puerto Ricans to the U.S. mainland are through the roof, as per Breitbart, and have received great increase in number ever since. Apparently, the migration back in 1980 were minimal with 12,000 a year.

As the years passed, statistics show that numbers are getting bigger and bigger. In 2010, 48,000 migrants per year were recorded while 83,400 were recorded in 2014. According to the news agency, numbers for 2015 are still to come but is expected to be larger than the previous years.

This is so because according to the publication, Puerto Rico operates more than what it can handle. The island has the U.S. minimum wage standard of $7.25 per hour. This is compared to the $4.00 in the British Virgin Islands, $0.96 in the Dominican Republic, and $2 in Venezuela.

According to the news outlet, it is highly unfavorable and gave results of only 43% Puerto Ricans with ages ranging from 18 to 64 years old are employed, and the rest, 27% are on welfare. 

Soon, Puerto Rico will lose cash flow to be able to pay government salaries and welfare benefits and this would result in another wave of migration as per the news outlet.

Tags

Puerto Rico, United States of America, May 1 debt, U.S. Congress, Paul Ryan, Rob Bishop

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