Sue's Blog

Thursday, October 12, 2017

More Breaking News

Puerto Rico as you have all probably heard by now - is essentially bankrupt - on fiscal life support - in need of massive bailout. It is considered impoverished.

Newfoundland and Labrador on the other hand is designated as a "have province". That puts us ahead of the provinces collecting equalization.

 In the 2017-2018 year, the following provinces will receive equalization payments:
  • Quebec ($11.081 billion)  (please note this amount) program designed to suit them.
  • Manitoba ($1.820 billion)
  • Nova Scotia ($1.779 billion)
  • New Brunswick ($1.760 billion)
  • Ontario ($1.424 billion)
  • Prince Edward Island ($390 million)
Back to Puerto Rico

Outstanding debt: 70 billion
Population: 3.4 million
$20,588 per person 

Unemployment 10%

Newfoundland and Labrador
Outstanding debt: 13 billion
Population: 528,000 
$24,621 per person

Unemployment 15%

This does not include the 13 billion dollar boondoggle Muskrat.

Both Puerto Rico and Newfoundland and Labrador see migration to the continental parts of their countries - both permanently and for temporary work.

Puerto Rico and Newfoundland and Labrador are losing population.

Puerto Rico's aging demographics are much healthier than Newfoundland and Labrador's 

We must also consider that Newfoundland and Labrador receives as all provinces do - transfer payments for programs such as health and education not so much for Puerto Rico.

There is a three-pronged problem here.

The first is the understanding or lack thereof of the Equalization program. I have discussed this briefly in a previous post.

The second is that even the reasonable or equitable (to some degree) parts of equalization - leaves us essentially bankrupt because although we have the resources to generate tax, royalties, revenues - we have mismanaged the resources so badly that what equalization considers we should generate from resources - we don't actually generate from them. (oil revenues unfair part)

The third problem is the absolute ignorance deliberate or otherwise of our politicians - refusing to actually understand the mess we are in.

And these same people continue to permit spending on Muskrat Falls.

The people of Puerto Rico just like the people of Newfoundland and Labrador love where they live and want to stay. However both jurisdictions are likely to see significant migration to their respective "mainlands" simply to survive and thrive.

Note to Labradorians - my use of the word "mainland" does not refer to you. I recognize the difference.   


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