Tuesday, July 23, 2024
Hawai'i Free Press

Current Articles | Archives

Wednesday, April 8, 2020
The Jones Act is American Self-Sabotage
By Michael Hansen @ 9:57 AM :: 2586 Views :: Jones Act

CATO asserts Jones Act is self-sabotage

by Michael Hansen, Hawaii Shippers Council, April 7, 2020

Real Clear Policy published on April 6, 2020, the opinion-editorial, “The Jones Act is American Self-Sabotage,” written by Colin Grabow, a Cato Institute policy analyst. It describes how the extraordinarily high cost of domestic ship construction mandated by the Jones Act is shooting the U.S. in the foot, economically speaking, which benefits competitors like the Peoples Republic of China (PRC).

Key excerpts from Real Clear Policy:

In their zeal to defend the protectionist Jones Act, supporters of the law argue that it helps thwart the ambitions of countries such as China. The truth is almost the complete opposite. If Beijing was able to vote for its favorite U.S. law, the Jones Act would surely be a strong contender. It’s been a disaster for both the U.S. economy and its maritime sector.

The reasons aren’t hard to understand. Out of the tens of thousands of ships in the world, a mere 99 comply with the Jones Act. That’s only 99 ships to meet the needs of the world’s largest economy and its non-contiguous states and territories including Alaska, Hawaii, and Puerto Rico.

And these few ships were built at fantastic expense. A ship built in the United States can cost up to five times more than one built abroad. Instead of paying $50 million for a ship Americans may instead be forced to pay $250 million.

With limited competition and expensively-built ships, the inevitable result is higher transportation costs.

Faced with high shipping costs, Americans do their utmost to avoid the use of Jones Act ships. Instead, they often use alternative forms of transportation such as trucks and rail.

Shipping-dependent areas of the country such as Alaska, Hawaii, and Puerto Rico, however, don’t have this option.

But sometimes the Jones Act doesn’t just deter the purchase of American products—it makes it impossible. Puerto Rico and New England both import natural gas for electricity generation, but none of it comes from the U.S. mainland.

The few ships that are built, meanwhile, feature numerous imported components such as the engines, so any notion that the Jones Act makes the U.S. self-reliant in shipbuilding is just wishful thinking.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii