The solution to Puerto Rico’s debt crisis is not more austerity. The solution is more economic development, more jobs, and less poverty. This will lead to more businesses, an expanded tax base, and, in the long-term, less debt.
Unlike a bipartisan House of Representatives bill that would establish a federal oversight board to renegotiate the massive debt with investors, Sanders’ bill would create a “Reconstruction Finance Corporation of Puerto Rico” that would protect public pensioners from cutbacks and “concentrate losses among vulture funds,” according to a summary.
“It is morally reprehensible that Wall Street vulture funds are demanding that Puerto Rico fire even more teachers, close more schools, cut pensions and slash the minimum wage so that they can reap huge profits off the misery of the people of Puerto Rico,” Sanders said in a statement.
The term vulture funds is a derogatory reference to specialized investing in deeply discounted or distressed assets, typically bonds, by buying them up on the cheap in hopes of profiting on the expectation of a credit restructuring
Born in 1941 in Brooklyn, Bernie was the younger of two sons in a modest-income family. After graduation from the University of Chicago in 1964, he moved to Vermont. Early in his career, Sanders was director of the American People’s Historical Society. Elected Mayor of Burlington by 10 votes in 1981, he served four terms.
Before his 1990 election as Vermont’s at-large member in Congress, Sanders lectured at the John F. Kennedy School of Government at Harvard and at Hamilton College in upstate New York.