EP 30: The Jones Act: A time to reform

Summary:

In this episode we present a debate surrounding the Jones Act, a US law requiring goods transported between US ports to be carried on US-built, owned, and crewed ships. We highlight arguments both for and against the law. Those arguing against the Jones Act claim it leads to higher transportation costs, inhibits economic development, and burdens the US economy, particularly in regions like Puerto Rico. Conversely, supporters argue the Jones Act bolsters the US maritime industry, supports jobs, and enhances national security by ensuring the availability of US-flagged vessels in times of crisis. We discuss the need for its repeal.

Questions to consider as you read/listen:

1. What are the key economic arguments for and against the Jones Act?


2. How does the Jones Act impact US domestic trade and national security?


3. To what extent does the Jones Act promote US maritime industry and employment?

Long format:

The Jones Act: A time to reform

Peter Zeihan has been railing against the economic inefficiencies of the Jones Act since he’s been doing his videos and in several of his books.  https://zeihan.com/the-jones-act-and-american-economic-development/

Besides his great books which are must reads, if you are interested in the economic inefficiencies of the Jones Act, here are some sources I liked reading. You might enjoy them too…

(as always with all critical reading consider the source and look for any bias)

https://www.cato.org/publications/policy-analysis/jones-act-burden-america-can-no-longer-bear#introduction

https://www.ntu.org/foundation/detail/the-jones-act-paradox-why-is-a-law-that-is-deemed-essential-so-frequently-waived#:~:text=Critics%20of%20the%20Jones%20Act,Hawaiian%20family%20$1%2C800%20per%20year

https://brownpoliticalreview.org/2022/11/the-jones-act/#:~:text=The%20result%20is%20a%20shrinking,does%20not%20go%20far%20enough

https://www.sciencedirect.com/science/article/abs/pii/S0022199620300933#:~:text=This%20paper%20examines%20the%20economic,Jones%20Act%20impedes%20domestic%20trade

https://maritimesafetyinnovationlab.org/wp-content/uploads/2019/05/mercatus-grennes-jones-act-v2-2017.pdf

https://www.hoover.org/research/how-jones-act-harms-america

https://www.nber.org/digest/202402/jones-act-and-energy-prices

I think it’s always important to at least consider “the other side”. Therefore, here are some resources to consider from those who argue the Jones Act is still “needed”:

https://www.americanmaritimepartnership.com/u-s-maritime-industry/jones-act-overview/#:~:text=The%2040%2C000%20Jones%20Act%20vessels,%2441%20billion%20in%20labor%20compensation

https://www.defensenews.com/opinion/commentary/2020/06/05/why-the-jones-act-is-still-needed-100-years-later/

Have a great day everyone. What a great community. Great tribe we are building here. Cheers and high fives to us.