View attachment 140950
You really should watch it, because the details help give the summary more context.
It basically boils down to PR declaring bankruptcy 6 months ago, but here is what led to that:
The federal government long ago made imported goods more expensive...84% of their food is imported...it's crazy expensive to live there. This means it does not make sense to do business in PR.
So why did people do business in PR? Because the federal government gave them tax breaks. This helped to grow their economy. In 1996, we ended the federal tax breaks in PR that resulted in a mass exodus of business and then people.
This resulted in PR's government raising a hell of a lot less tax revenue, so they raised taxes to keep up with debt.
That resulted in more Puerto Ricans leaving. Now more live outside PR than in it because it turns out they do actually want to work, so they moved to the mainland. This makes it even harder for PR to pay off debt.
Energy is also imported and their infrastructure is completely outdated (and now understaffed), so the federal government and local government both share blame here.
Their economy has been in complete tail spin since 2006.