Is Anibal Acevedo Vila Lying or What?

Recently Ex-Governor Anibal Acevedo Vila has been making the rounds, he even stopped by La Comay, pimping his new book. During several interviews I've heard him make the following claim, Governor Fortuño is worsening our economic situation by firing government employees. To support his argument he is sugesting that we follow Barack Obama's example of using economic stimulus investments to spend our way out of our respective economic problems.

While, Acevedo Vila is right on both counts. He is incorrect in putting forth a theory that Puerto Rico can spend its way out of our current economic problems. His argument fails to make a huge distinction between the US Government and Puerto Rico. The United States has one huge resource available to them that Puerto Rico doesn't. It's called the United States Treasury.

If necessary, the US Treasury can just print up new money to pay for its deficit. All we can do is issue bonds, which means we've got to face "El Cuco." And that brings up another difference, the financial instruments of the US Government, like Treasury Bills, are not subject to rating by Moodys and Standards & Poor.

In addition, I don't think anyone is suggesting that the cuts being made by Fortuño are meant to purposefully hurt the economy, that is the unfortunate side effect of trying to appease the credit agencies. Which, just like when Acevedo Vila closed the government back in 2006, they both [Acevedo Vila and Fortuño] are merely dancing to the tune sung by "El Cuco."

Conclusion

So here's what gets me. From all accounts, Acevedo Vila is a smart man, so why would he try to build a case based on flawed logic? Is it just spin? Is is just politics? Is he purposefully excluding this "small distinction" in favor of making a larger point? Is he purposefully misleading people? Is he lying? Or is my assumption incorrect, and he's just too dumb to realize how the two situations are NOT the same?

3 comments:

The Insider

12 de noviembre de 2009, 14:27
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dijo...

How would Puerto Rico spend its way out? Build more houses?

If they did, I don't imagine all those cut government employees are construction workers.

They need to cut the fat, and let people make their own decisions about how to survive - for the sake of the country.

Based on productivity, they are paying many of them high-end welfare payments.

And, for you out there faced with the decision, the United States is open and ready for you.

MC Don Dees

12 de noviembre de 2009, 20:38
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dijo...

You see, this is another example of political leaders saying something to "hurt" the incumbent instead of trying to help, and since most people "trust" their leaders, they actually begin to believe the half truths and deceptions.

I mean seriously, how could anyone believe that Fortuño would want to hurt the economy, unless he had to. Where is the upside to that strategy? I'm nearly speechless that what we call the news was not more effective in reporting the reasons for the layoffs.

Thanks, as always, for reading and sharing your opinion.

Scylas

18 de noviembre de 2009, 09:59
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dijo...

Acevedo Vila is a moron.
Not a constructive comment, but its the truth.