Macro Musings with David Beckworth cover image

Colin Grabow on Current Trends in US Trade Policy and the Adverse Impact of the Jones Act

Macro Musings with David Beckworth

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Is the Jones Act a Good Idea?

The logic of the jones act is that, you know, by restricting it to us. Flag vessels, that means we have lots of ships. That's the theory. The reality is that none of that has really come to pass. It turns out that forcing people to pay five times more the global price for a ship is not a great way of encouraging people to use ships. We don't build very many and the ones that we do build are highly dependent on foreigners. Ship building in this country is overwhelmingly driven by the military. Ships built and repaired for the us.

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