Puerto Rico was able to make a payment on its bond debt this week, avoiding, at least for the moment, a default. But in order to maintain certain basic services and do things like make payroll payments, the government was forced to use funds that were earmarked for other future payments due next month. Puerto Rico has been in a recession for more than a decade and even as he made this week’s payment, the governor said “This is a distress call, from a ship of 3.5 million people that is adrift at sea”. Presidential candidates have weighed in on how best to solve the territory’s fiscal crisis. We’ll take a look at what has led to the island’s economic problems with University of Connecticut Professor Charles Venator.
(Photo: Flickr/MJ Baumann)