The biggest lesson of Puerto Rico’s bankruptcy – CNN

Here's an idea of the out-of-control big-government policies that have brought about financial ruin in Puerto Rico: Public employees get 30 vacation days a year, the minimum wage is 77% of the median wage, and bondholders suffer for the benefit of big labor. Puerto Rico's Democratic delegate Pedro Pierluisi admitted to Congress that, "Part of this overspending is definitely the result of mismanagement. I admit it. And it's embarrassing." Keep in mind, Puerto Rico is a US territory, and if this debt-fueled nightmare can happen there, it can happen in any state across the country.

Ultimately, the commonwealth needs economic growth. However, to have access to the credit it needs to rebuild, Puerto Rico needs a comprehensive, common sense, and transparent restructuring and repayment plan that is best achieved through negotiations with creditors. Title III proceedings could last for years and will delay any chance at economic recovery Puerto Rico can have. The best outcome is a court-driven restructuring process to protect creditors' rights and maintain essential services for residents.

Rosello found himself not only facing economic collapse, but also facing lawsuits from creditors. Instead of taking responsibility and finding a viable solution to pay off the debt, the governor sought Title III bankruptcy protection.

What happened in Puerto Rico is what happens when leaders make and defend poor policy decisions for decades; eventually you have to pay the tab for unchecked borrowing and spending. In addition, the bloated government workforce has been a disaster for the economy of Puerto Rico and investors are left holding the bag.

Read more:

The biggest lesson of Puerto Rico's bankruptcy - CNN