How A 96-Year-Old Law Has Jeopardized America's Ports

How A 96-Year-Old Law Has Jeopardized America's Ports - Jared Meyer - Page 1

Recent slowdowns at West Coast ports, the result of ongoing labor disputes, are jeopardizing the more than $2 trillion in cargo that pass though these ports each year.

The slowdowns are not the only way U.S. maritime shipping unions are holding back the American economy. Most Americans have not heard of the Merchant Marine Act of 1920, also known as the Jones Act, but this piece of antiquated legislation increases costs for American consumers and discourages domestic business investment.

The Jones Act is a federal statute that requires all goods transported by water between U.S. ports to be carried on ships built in America, owned by citizens, and crewed by U.S. residents.

...Contrary to the claims of Jones Act supporters, the law does not increase economic growth. A select few benefit, but most consumers lose. 

...To highlight the absurdity of this law, consider goods being shipped from Japan to the Hawaii. Foreign ships must pass Hawaii on their way to San Francisco, so an American ship can take that cargo and bring it back to Hawaii. No wonder Hawaii has the nation’s highest cost of living, 12 percent higher than second-place Connecticut.