Posted by Peter Schiff on June 14, 2017 3:19 am

Summary:
In Puerto Rico’s  recently held non-binding referendum on statehood, just 23% of the eligible voters who actually voted overwhelmingly chose statehood.  This would mean that Puerto Rico would keep its current debt and take on the $20 trillion U.S. national debt. This would offer the moral hazard of offering Puerto Ricans additional welfare benefits. The last thing Puerto Ricans need is to be in a situation where it is more attractive not to work.

A lot of people are asking me abo0ut the recent non-binding referendum in Puerto Rico on statehood
97% of the people who bothered to vote voted for statehood over independence or maintaining the status quo
Only about 23% of the eligible voters actually voted
So most people who objected to statehood boycotted the election
So most of the people who voted were predisposed to vote for statehood
The last statehood referendum held in 2012 was even more in favor of statehood
Nevertheless, the governor of Puerto Rico, Ricardo Rosselló is going to go to Washington demanding that the will of the Puerto Rican people be addressed
If you do not know by now, I am Puerto Rican
I am an American citizen residing in Puerto Rico so I vote in Puerto Rican elections I do not vote in U.S. National elections, but I am away from Puerto Rico at present
Had I voted, I would have voted to maintain the status quo
I don’t want Puerto Rico to become an independent country, but the last thing I would want is for Puerto Rico to become a state
That’s why I am doing this podcast
Most of the articles I’m reading on this issue address the idea that state will somehow benefit Puerto Rico, because they have been in a recession for 10 years, they have high unemployment
They have a lot of debt and somehow they see statehood as a solution to this problem
Statehood for Puerto Rico is like throwing a drowning man an anchor
 The worst thing that could happen to Puerto Rico is for it to become a state
If Puerto Rico becomes a state, every person who lives in Puerto Rico, who is currently exempt from paying Federal income tax will now have to pay it
The IRS doesn’t exist in Puerto Rico
Puerto Ricans also do not have to deal with Obamacare – it doesn’t exist there
Each Puerto Rican currently owes about $20,000 in debt
American citizens per capita owe $61,000 in debt
That’s just the $20 trillion national debt
That doesn’t include all the other unfunded liabilities
Right now, Puerto Ricans do not share in the U.S. national debt
If Puerto Rico becomes a state, the per capita debt goes from $20,000 to $80,000
Because they inherit a share of the U.S. national debt
Why would they want to sign up for that?

Source: Peter Schiff

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