Should Puerto Rico Default?

Donald Trump caused a stir this week by suggesting that Puerto Rico’s massive $73 billion public debt should be “wiped out.” Puerto Rico narrowly avoided default with an interest payment this summer but the debt is a huge long-term problem for the island. While the cost of this burden is plain, talk of default is considered beyond the pale. Indeed, the White House immediately “walked back” the President’s remark. “I wouldn’t take it word for word with that,” said OMB director Mick Mulvaney. W...