The demon in democracy: Puerto Rican-style

Last week, House Democratic Leader Nancy Pelosi said a Republican plan to create an oversight board for Puerto Rico would exert “undue and undemocratic control” over the U.S. territory. Yes, that’s exactly the point as the island struggles with $70-plus billion in debt its elected officials gave it.

Democracy has failed in Puerto Rico, as it failed in Detroit. Politicians learned to spend and spend, elect and elect, as those higher and mightier in Washington have done. The difference: Politicians in Puerto Rico, Detroit, and other debt-ridden places can’t print more money.

House Republicans last week released draft legislation that would create a five-person board designed to audit the territory’s government and create new budget measures. If Puerto Rico’s governor and legislature refused to enact the plan, the board would have authority to do so.

“The sweeping powers of the oversight board proposed in Republicans’ current discussion draft are far from what Democrats can support,” Pelosi said. Other Democrats said the same. Puerto Rico Gov. Alejandro Garcia Padilla said he would fight the bill, and Puerto Rico’s Senate approved a resolution rejecting the plan.

Pedro Pierluisi, Puerto Rico’s non-voting representative in Congress, said the board “must have teeth but not fangs.” But Democrats and Puerto Rican politicians want the board to have advisory power only—they don’t really want teeth, only gums.

Legislation drafter Rep. Rob Bishop, R-Utah, is concerned that the territory hasn’t turned over audited financial statements. He said the only way to obtain them is through a strong control board, and “there is broad agreement that the Puerto Rican government lacks the capacity to affect change over its finances.”

The plan may face critics on both the left and the right. Obama administration spokesman Daniel Watson said it needs improvement so it “respects the Commonwealth’s self-governance.” Heritage Action, a conservative group, said a control board that allows debt restructuring may create new problems unless it has “the tools necessary to truly unleash needed economic growth on the island.”

I visited Puerto Rico in November and wrote in December about the territory’s problems and the irresponsibility of its bailout-seeking politicians. The Obama administration’s sympathy with over-spenders leaves me skeptical about one part of Bishop’s oversight board proposal: President Barack Obama would have the power to appoint all five members.

I suspect Pelosi and others will eventually go for a plan that has an oversight board with the appearance of teeth (but molars, not incisors) because Obama will give them a wink and a nod as he appoints members who give Puerto Rico “progressives” the opportunity to maintain their power.

The problem, of course, is that poor Puerto Ricans will be hurt if Washington doesn’t bail out the territory. High-spending politicians turn their constituents into hostages. The problem is similar to what’s involved in welfare systems: Most poor parents are responsible and want what’s best for their kids, but addicts demand more money for themselves and say it’s “for the sake of the children.”

Next-to-last word goes Sen. Charles Schumer, D-N.Y.: “Puerto Ricans are members of the American family, and when someone in your family is struggling, you help them out.” But what’s real help in this situation? It’s not giving addicted politicians more cocaine.

The Associated Press contributed to this report.