May 3, 2016

May 3, 2016 | News Releases on Puerto Rico

Heritage Expert Responds to Calls for Taxpayer-Funded Bailout of Puerto Rico

In his letter to Congress yesterday, Treasury Secretary Lew tried to further grease the tracks for a taxpayer-funded bailout of Puerto Rico. Salim Furth, research fellow in macroeconomics at The Heritage Foundation says that’s a bad idea:
“Congress should continue to stand firm and set a clear precedent that local governments and creditors can expect no financial help from Washington to cover their recklessness. The current Congressional plans, including PROMESA, will not solve Puerto Rico’s problems and will only temporarily delay the calls for a bailout.
“The best way to help the people of Puerto Rico is to advance economic reforms — like an exemption from the federal minimum wage and the maritime Jones Act — that will spur economic growth on the island. A taxpayer-funded bailout would reward fiscal irresponsibility, set a terrible and expensive precedent, while doing nothing to address the root cause of the island’s fiscal morass.”
For more info and to sort through some of the myths and facts around this debate, see Dr. Furth’s latest piece for The Daily Signal here.

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Justin Posey Communications Manager, Institute for Economic Freedom and Opportunity and Legal Studies
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