News about the economy
What a mess.
聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 Jan. 2007聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽March 2017
Total Employment聽 聽 聽 聽 聽 聽 聽 聽 聽 聽1,277,000聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽999,775
Non-Farm Employment聽 聽 聽 聽 聽 1,037,000聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽880,800
Government Employ.聽 聽 聽 聽 聽 聽 聽 聽 聽299,000聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽221,700
Ratio of Government
Total Employment聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 23.4%聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 22.2%
For comparison purposes, examining Illinois - one of the worst if not the worst state in the U.S. economically speaking, Illinois has a much lower number of government workers to total employment:
聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 12.8%聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽12.6%
You can do more when the process / procedures are efficient and you have a relatively efficient workforce. A lot of stuff in PR is due to old ways and inefficient ways to do things.
We need send some efficiency experts with Carta Blanch to to PR to make changes.
ReyP wrote:Sawman, the key of the numbers is that Illinois has a fairly efficient government working force, one of their workers will do more than 2 in PR, but they also make more money so that may be a factor.
I'm personally familiar with Illinois having grown up there and returning regularly - I think you're over-estimating the difference in attitude and efficiency.聽 Not to get too far afield, Illinois state and local governments (namely, Cook County and Chicago Public Schools) are loaded with political patronage jobs, excess number of positions and jobs serving no public benefit whatsoever.聽 Higher pay does not mean productive work in Illinois!
PR probably needs to figure out how to handle government functions with around 150,000 employees, which can in part occur by outsourcing trash and other services like the rest of the U.S.聽 Jobs would move from public entity to private sector, who can perform these services faster, better and cheaper than government workers.聽 Just one example.
P.S.聽 It's interesting that Illinois, a state that has not passed a budget going on 3 years I think, has taken time from all of its problems and endorsed PR statehood.聽 I think Illinois is tired of being the ugliest kid on the block and knows the bailout PR gets will make it more difficult down the road for Congress to not bail Illinois out of its massive pension problems.
SawMan wrote:P.S.聽 It's interesting that Illinois, a state that has not passed a budget going on 3 years I think, has taken time from all of its problems and endorsed PR statehood.聽 I think Illinois is tired of being the ugliest kid on the block and knows the bailout PR gets will make it more difficult down the road for Congress to not bail Illinois out of its massive pension problems.
You may be right on that point, if you can help someone set precedence, you can then use it for your own gain.
The congress and the whitehouse have agreed to include 296 millions in the budget that will go to be voted by the end of the week in congress, this money is to help fill part of the hole in Medicaid (MySalud) in PR.
PR government was hopping for 900 million and recently requested a minimum needed to sustain the service of 540 million, but it will have to put up with the 296 million regardless.
This will help cement the negotiations with the medical insurance companies such as SSS, MCS and others which needed to be in place As soon As Possible in order to deal with July 1st new budget in PR.
A small win but not near enough to keep MySalud afloat. Removing OBAMACARE is interfering with the standard grant PR normally receives as Obamacare funding. Unlike most states, there are no market places in PR, the government instead gets a block grant of around 1.2 billion a year to supplement the program.
Very few expats in this forum are affected either way since most have some private insurance or VA, only the few that use MySalud may be affected.
Better than nothing.
Rey
A lesson to investors & hedge fund guys聽 - even municipal GO bonds can go tits up when they run out of money! 馃槧
This whole situation is FUBAB!!聽 The corrupt politicians and others involved in this should be prosecuted- but unlikely as the current Governor is the son of former Gov who was in office when much of this mess was pawned off on the public debt.聽 It really is criminal.
You go to the car dealership, the salesman sells you an overpriced car, the bank lend you the money. A year later, can you go to the bank and tell then is their fault you made a bad deal? Are they responsible for the money?
Let's be realistic the ones that will continue to loose is the people. Specially the middle class, as alway! In the island as well as in mainland, the working class is the one that pay all the politicians broken promises and bad deals.
Sitka wrote:Bankruptcy is the only realistic option - bond holders will take a haircut.
A lesson to investors & hedge fund guys聽 - even municipal GO bonds can go tits up when they run out of money! 馃槧
They expect to take less than 100%; but not too much of one.聽 PR has already offered 77% to the GO bondholders.聽 Interestingly, the holders of senior sales-tax debt get first priority on sales tax revenue collected.聽 So, as a secured creditor they have little reason to take much less than 100% as they will be paid in full from sales tax revenue anyway.聽 The sales-tax group wants Puerto Rico to seek Title III BR.
Until the people learn to find better leaders, nothing will matter.
Some think that statehood by some magic, will give us better leaders...... nope you just get one that speaks better English while stealing your wallet
How about giving the politicians a lot less power aka everyone more liberty?聽 Oh no, we do not like that.聽 Because liberty also implies personal responsibility to fend for myself instead of hoping that the government will take care of me at someone else's expense.聽 And so we do the same thing over & over & over.
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Summary:聽 "Outside income" and "basic services still present" plus "I gotta backup" for temporary crashes in those services added to "I can move again, pronto".聽
Just my 2 cents.聽 We are coming June 5 to June 19 to explore.
dblahusch wrote:What do you think that means for people like me/us who are hoping to move to PR this fall?聽 What effect will there be for the short term and long term?聽 What industries could it affect?
If you are looking to move and find a job in the island I wouldn't recommend it.
If you are retiring with a steady income, you need to take into consideration that some services will increase. Housing, rentals or purchasing will still be lower than in the mainland.
My suggestion is to do your homework, come for a few months. Explore different parts of the island, compare prices. Talk to the locals.
And finally, have a plan b in case you decided that you want to leave.
dblahusch wrote:What do you think that means for people like me/us who are hoping to move to PR this fall?聽 What effect will there be for the short term and long term?聽 What industries could it affect?
Prices are fairly low at the moment and will go lower but not by much. You could wait, but I would recommend instead to buy when you find the RIGHT place at a reasonable price and start living in the island which will overall be cheaper than the states.
None of us are getting any younger, the sooner you can destress, and start enjoying your retirement the better.
If you have your own business as I understand and your customers are in the mainland, there will be little effect to your business, if your business is local, it will likely go down since people are watching their expenses and many are leaving for the mainland. I would also suggest looking into going global if you can.
If this happens in the next few days, a judge will be selected by the Superior court to handle the case and all the suits would endup frozen pending the bankruptcy case. The whole thing may take 18 months or so, mean time bond holders will get no pay and their suits will be on hold once again.
PR made an offer this weekend which was turned down by the bond holders, so off to court we go.
It will be a very interesting court case, stay tuned, same bat channel.
The judge will need to decide if the government and board are in compliance with Title III and if so it can authorize the legal backrupcy court case, but it may ask for more information and perform other compliance tests, which may end up delaying the case for up to 4 more months.
Assuming all is well and the FCB votes for it, and the court accepts it, then it will be the FCB that will fight the case in court, not Puerto Rico. I am sure they will pass us the bill for all the high level lawyers and expenses.
Some democrats in congress are asking to stop all legal actions and that the US congress or its agents conduct an audit of the debt to ensure we know what happened, how it happened, prevent it from happening again, which debt is legal and what if any federal laws were broken.
There are positives and negatives on this obviously.
Comercial properties owned by the goverment will likely be sold for cheap
I think I have some bad info of the GNP to Debt. If what I have for numbers, this shouldn't have happened.聽 Then again, Puerto Rico has government owned business' (looks like the largest portion of debt) and we all know how government runs a business..
lgustaf wrote:I thought PR couldn't file bankruptcy due to some obscure rider on a law enacted decades ago that concerned the status of territories.
You are right, but Promesa law gave PR tittle III which is a form of bankruptcy and it applies to the entire government unlike regular bankruptcy.
What is Puerto Rico's Tax revenue income?
I could be wrong
Federal Control Board requested PR new budget to implement around 3.5 billion cut.
Full budget to be balanced in 3 years.
ReyP wrote:Total take is around 12 billion grossed, latest budget with all the cuts is around 9.8 billion.
I could be wrong
Federal Control Board requested PR new budget to implement around 3.5 billion cut.
Full budget to be balanced in 3 years.
Now, what is Government expenditure?
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