HOW AMERICA’S GREECE COULD BECOME AMERICA’S HONG KONG
America's Greece is Puerto Rico.
Like Greece, the Puerto Rican government has more debt than it can service, and some are calling for a bailout by U.S. taxpayers. The major Puerto Rican state-owned or controlled enterprises are all losing money, including the power authority which is insolvent.
Puerto Rico is an American territory that was acquired from Spain in 1898 during the Spanish-American War. The island has a population of about 3.6 million, which is declining as many Puerto Ricans emigrate to the U.S. mainland or elsewhere because of the continuing economic stagnation.
Hong Kong was a small British territory, with the British legal system but no self-government. Yet, it has become rich -- having more than twice the per capita income of the average American -- without receiving aid and subsidies from Britain which the United States has and continues to provide to Puerto Rico.
The operative question is why has Hong Kong become so much more successful than Puerto Rico?
