Largest Government Insolvency in US History Hits Puerto Rico Hard

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Things are not looking all that great for Puerto Rico right now. The region has suffered from major financial turmoil as of late, and it looks like things will only get worse.It is not surprising the region is taking such a major hit, although very few people had expected things to get so dire quickly. The local government is bankrupt, which could spell disaster for everyone living in the region.

It is never good to learn a government has gone bankrupt. Although Puerto Rico has dealt with financial hardship for some time now, things are spiraling out of control very quickly. The country has nothing left, as there seems to be no reason to go to work anymore. It is not impossible to think the entire nation will come to a standstill if nothing is done.

Curtain Call For Puerto Rico

Local business owners are incredibly concerned by the way things are evolving right now. This event marks the largest government insolvency in the history of the United States. Puerto Rico cannot pay its US$123bn debt, and the region is now looking to receive bankruptcy protection. This is a rather extreme measure, yet it appears it is the only course of action left for the region right now.

When a region files for bankruptcy protection, everyone living there knows things have gone from bad to worse rather quickly. Pensions may never be paid out in full, private companies are forced to pay more taxes, and salaries of all employees will plummet. Those with enough money saved up will try to flee to a better place, most likely Florida. Everything is going wrong for Puerto Rico, and turning around the ship is virtually impossible.

For the time being, the local government is looking to introduce some severe measures. Nearly 200 schools will be closed, and teachers may see the number of hours they are paid for reduced by as much as two days per month. It is evident the future of Puerto Rico is very uncertain right now, and they are entirely dependent on the US legal system to receive any form of empathy. A lot of sacrifices will need to be made, yet no one knows for sure where this will end.

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