Puerto Ricans were in dire need of fuel following the recent disaster. Thankfully, there was an oil tanker nearby. Sadly, the American government stopped it from landing! Why? because of The Jones Act, a foolish statute with a dumb name, as reported by NY Post.
Increased prices
By virtue of the Jones Act, no cargo may be transported between American ports on vessels that were not built and crewed in the US.
This raises the price of products ($1,800 more annually for the typical Hawaii household) and can occasionally exacerbate crises, as it did in Puerto Rico.
The US shipping industry, however, argues that this law is beneficial.
According to Jennifer Carpenter of the American Maritime Partnership, “The Jones Act assures reliable, devoted service” in my most recent film. The group’s members lobby on behalf of shipowners and labour unions.
Your regulations seriously harm people,
I retort rudely and accuse her outright of manipulating me: “You pay money to politicians; they forbid your competition.”
We are not at the mercy of foreign forces because the Jones Act is a tried-and-true American security measure, she grins.
Foreign shipment prohibited
That is absurd. The incident is unrelated to American security.
Foreign nations frequently send commodities to America via foreign ships.
This includes Russian and Chinese ships. Right now, dozens of foreign ships are docked in American ports.
Only within the United States is foreign shipment prohibited.
Only American ships and crews are permitted to transport cargo from Miami to Puerto Rico or Los Angeles to Hawaii.
Another unique agreement that one business has conned Congress into passing is the Jones Act.
Even the US shipbuilding industry suffered from the foreign ship ban. Due to the ban on competition, they became obese and indolent.
In the past, there were over 450 American shipyards.
There are now just 150. Also, there are fewer ships with American crews.
I tell Carpenter, “American shipyards keep collapsing because of your monopoly. As there is no competition, they do not advance.”
Fierce competition
There is fierce competition both inside our industry and with other forms of transportation! She answers.
“Dogs eat dogs,”
No, it’s not, I say. I answer.
The top dogs are prohibited.
She swiftly turns.
The US government does not support its shipyards in the same manner as many of our strategic rivals and friends.
That is both accurate and pitiful.
Subsidies cause harm. The fact that America subsidises less than other nations is a good thing.
Nevertheless, trade policy expert Scott Lincicome of the Cato Institute notes that American ships cost significantly more to build than ships in Japan or Korea, “four to five times more expensive,” primarily due to “decades of being sheltered from competition, just not having to innovate.”
Jones Act should die?
No American shipyard today constructs even a single vessel capable of carrying natural gas. If it’s a cold winter, that poses a significant issue for New England.
Because he was unable to “obtain relief from the Jones Act,” Eversource president Joseph Nolan was concerned that there wouldn’t be enough gas for the winter.
It makes sense why the statute is described as an “antiquated 100-year-old union-driven policy” by New Hampshire Governor Chris Sununu.
Carpenter campaigns against waivers of the Jones Act.
I said to her, “You pay politicians not to provide waivers.”
“Hold up”, she yells.
Let’s examine this. Actually, waivers need to be uncommon, safe, and lawful. We witness people trying to make a fast buck all too frequently. There is no requirement for national defence, and there is no product deficit. Hey, I could save some money, is what it says.
But consumers benefit by saving money!
Everyone benefits from it, except the shipping monopoly in America.
Of course, the majority of industries dislike rivalry!
US automakers didn’t want to go up against Toyota and Honda.
Yet since they had to compete, they improved.
According to Lincicome, “foreign rivalry would improve American-made ships in the same way that foreign competition benefited American automobiles.”
If the American shipping industry had to compete like any other industry, we’d all be better off.
Jones Act repeal is necessary.
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Source: NY Post
