Word: Cancel Puerto Rico's debt

Center for Economic & Policy Research -Puerto Ricans are US citizens, and Puerto Rico is legally entitled to the same federal relief and reconstruction aid as Texas or Florida. But Puerto Rico is also an “unincorporated territory” of the United States ? or, as many would say, a colony. Although Puerto Ricans can be drafted to serve in the US military, and are subject to other obligations of US citizenship, they do not have voting representation in the US Congress.

Therein lies the problem: Puerto Rico’s political status not only prevents these US citizens from securing their legal rights, but even worse, it allows them to be treated very badly, over and over again, and not have the sovereignty to chart a different course.

That different course is desperately needed, because if Puerto Rico is to have a future, it will need a whole new economic plan that allows it to recover. This would include, at a minimum, the cancellation of most of its debt, which is not going to be paid in any case. The austerity that has been imposed as a response to this debt burden needs to be replaced by a fiscal stimulus program, much of which could go toward reconstruction.

That reconstruction could be aided by the permanent repeal of the Jones Act, a shipping law that raises the price of food and other necessities. And Puerto Rico should get the same federal Medicaid and Medicare funding as the states, which would save the island hundreds of millions of dollars annually.

In the longer run, the question of Puerto Rico’s political status will need to be resolved. As a US state, it would at least have two senators and five voting representatives in the House — and perhaps our political class would pay more attention to the island’s problems. If it were independent, it could potentially pursue a different economic strategy, with its own currency and control over fiscal and monetary policy — and presumably, it could default on its debt. But its current status leaves it at the mercy of Washington, and Washington – lobbied by vulture funds and other creditors - hasn’t shown much mercy lately.