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Monday, September 25, 2017

Hurricane PROMESA

The U.S. colony of Puerto Rico is being devastated in more ways than one. This is nothing new, of course. But I guess the natural disaster part of this might get some to pay attention. That is, if anyone pays attention to the natural disaster.
The island’s governor requested greater federal assistance over the weekend, and it has yet to appear. (Reporting indicates the White House might get around to it in October.) Donald Trump has been virtually silent on the issue, preferring instead to attack African-American athletes.

But the glacial pace of Congress’s response is part of an older pattern. By denying the island statehood, Congress deprives residents of the vote and of certain funds. Puerto Rico’s economic options are further limited by the Jones Act, as the PBS Newshour reported in 2015; the act “requires everybody in Puerto Rico to buy goods from an American-made ship with an American crew.” In 2016, Congress finally moved to resolve Puerto Rico’s years-old debt crisis—the island was $73 billion in debt—by passing PROMESA, which ostensibly allows the island to restructure its debt.

But PROMESA is essentially an austerity measure. The financial oversight board charged with PROMESA’s implementation has proposed slashing public spending, further eroding the island’s worn safety net. “The plan includes cuts to the University of Puerto Rico, a reduction in pension benefits and a $550 million reduction in the island’s annual health care budget,” Marketplace reported in March.

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