3 ms·
> If everyone has the expectation that the lenders and borrowers will try their best to live up to the contract they made in good faith, wouldn't it be a better
by jlg23 9y ago
> If everyone has the expectation that the lenders and borrowers will try their best to live up to the contract they made in good faith, wouldn't it be a better equlibrium?
What makes you think Puerto Rico did not try? How much longer will the poor have to suffer until you accept they've learned their lesson? Some facts about Puerto Rico:
Puerto Rico is poor, almost half of the people live below the poverty line.
They already, for years had to pay higher taxes and fees on almost everything to fight the deficit.
Years ago the first economists called for a restructuring of the debt because it's highly unlikely Puerto Rico will ever be able to repay it.
For years, those with a good education left Puerto Rico because there is no hope of turning the country around while staying on the current course.
From some abstract moral-focused point of view you are absolutely right of course, but here I agree with Berthold Brecht: Food first, moral second. ("Erst das Fressen, dann die Moral!").
- savanaly 9y agoI wasn't making commentary about Puerto Rico, except in taking exception to the poster above me who was pushing the line that not only should Puerto Rico default on their debt, they shouldn't even regard it as a bad thing that they have to, since after all the people lending them the money knew it might never get paid back and built it into the interest they charge.
- anigbrowl 9y agoWell, they did. There's nothing morally superior about being the lender vs. the borrower. Rich people are not better simply by virtue of having money. It's just business.
- rhizome 9y agoWhat is the exception you're taking? It sounds like it's the "regard it as a bad thing" part, which you present without support. As long as we're talking about pushing lines.
- intended 9y agoThe joy of the contract is that it is a non-moral document. Its a contract. Success or failure in being able to meet the conditions are all mapped in.