How would an industry react if there was such an artificial control on where something could be made?
Well look no further than this episode and America’s domestic shipping industry, more specifically the Jones Act, that mandates all ships being used to transport goods domestically in the US, be built in America and operated by mostly Americans.
What the reasoning was when this Act was put in place, and how far the US has fallen since the industrial revolution in ship building globally, set the stage for the modern pushback and general lazy obedience to the status quo argument and political will.
As my returning guest Colin Grabow policy analyst at The Cato Institute details, forcing ships to be built in America only, breeds a lack of specialization for the US’ ship yards, which then means a lack of efficiency and lack of standardization, resulting in lower quality ships and higher costs.
Listen in to learn what the Jones Act is, and why we should seriously be considering it's repeal.
(0:00) - Introduction
(6:16) - Discussion on the history and purpose of the Jones Act
(15:47) - The role of the Merchant Marine and its relationship to the government
(19:23) - Effectiveness of the Jones Act and its continued existence
(23:06) - The modern-day implications of the Jones Act
(27:48) - The lack of competition and innovation in US shipbuilding
(34:22) - Scale and efficiency
(39:46) -International trade
(45:12) - The Impact of the Jones Act on Domestic Trade
(58:22) - The Decline of the Maritime Industry
(1:04:01) - Potential Infrastructure Shifts
(1:12:45) - The Environmental Impact
(1:24:41) - Breaking the Status Quo
(1:31:45) - Creating Stable Shipping Industry
