On Tuesday President Donald Trump said he would be in favor of forgiving Puerto Rico of it’s $73-billion-dollar debt to help the island territory recover from the effects of Hurricane Maria. Pittsburg State Economics Professor Dr. Michael Davidsson thinks the proposal is more of a humanitarian gesture than a financial strategy.
“If the U.S. is going to do this, I think it’s not because it would make economic sense,” Davidsson says. “It would more be because, it would more be because, to help out the people of Puerto Rico.”
Davidsson also says while forgiving the debt would help the people of Puerto Rico, it may also raise questions from states also facing economic trouble.
“It’s definitely going to set precedent,” Davisson says. “It’s difficult to see how the United States would help Puerto Rico, but not say, Illinois. Illinois is also in bad shape.
Davidsson says it would be difficult for Puerto Rico to pay off the debt since the tourism industry was severely effected by the hurricane