The Jones Act seems like very bad legislation but I still find it remarkable that it hasn’t even worked to create a US ship building industry. We just give up on doing intrastate sea commerce instead it seems.
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When the shut down of international trade creates a domestic monopoly, you get increased price and decreased quantity unlike in the standard trade model of tariffs.
maximum-progress.com/p/the-jones-ac
Congress credit the Jones Act for the feeble ship industry we have. Think it would be worse without. It's existentially horrifying for me.
I support the important goal of sustaining a U.S. shipbuilding industry, but it seems clear the Jones Act has utterly failed to accomplish this and only serves to promote gross inefficiencies at terrific expense.
0.1% of global shipbuilding output last year: unctadstat.unctad.org/datacentre/dat
The damage to Puerto Rico, Hawaii, Alaska, etc has been immense. Just nonsensical from that standpoint.
An analysis of market-distorting factors in shipbuilding
Jones Act intention: domestic trade by water is so imperative that we can use it as a backbone to build naval infrastructure
Jones Act result: this is so shitty that we are actively disincentivized from using our country's most valuable natural infrastructure
There are approximately 180 U.S.-flag vessels between the three separate U.S.-flag fleets, according to the Bureau of Transportation Statistics (BTS). The three fleets consist of the domestic fleet, the international fleet and the Military Sealift Command (MSC).
Roadways are subsidized to the moon, so why bother building expensive ass ships that have to go through slow union ports?
Air freight optimized for all end-consumer expectations of immediate delivery.
Next to no investment in new freight capacity by rail or by water in decades.