Summary
Who would have thought the Gulf of Mexico oil spill would make a 90-year-old law newsworthy? The Merchant Marine Act of 1920, also known as the Jones Act, was meant to save the merchant marine industry by requiring ships that plied American waters be built in the United States and manned by American crews. After the oil started gushing, lawmakers started demanding that the government waive the law to speed international assistance for the cleanup. What the White House can't waive, however, is the ongoing damage caused by the Jones Act. The policies it embodies are a remnant of a worldview that contributed to economic collapse and the Great Depression.
Like many protectionist policies, the premises of the Jones Act seem plausible: Require goods moving from one U.S. port to another to travel on U.S.-built ships, with U.S. crews, and you will protect U.S. maritime and shipbuilding jobs. Unfortunately, under closer scrutiny it turns out the idea isn't seaworthy. The history of the U.S. merchant marine since passage of the Jones Act has been a story of decline, interrupted only by a massive shipbuilding boom during World War II. In 1920, U.S.-flagged ships carried 52 percent of the nation's seaborne trade. By 1939, U.S.-flagged shipping tonnage had declined by 25 percent and American ships carried only 22 percent of our seaborne trade.See the full content of this document
Extract
Congress Needs to Abolish the Outdated Jones Act
After WWII, the number of U.S.-flagged ships declined rapidly to 1,072 by 1955. By 2005, that number declined to 249. As of December 2007, the U.S. ocean-going me...
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