Tuesday, May 30, 2023
Hawai'i Free Press

Current Articles | Archives

Wednesday, September 2, 2015
Former World Bank Chief Economist: Jones Act Very Costly
By Michael Hansen @ 10:10 PM :: 4370 Views :: Jones Act

by Michael Hansen, Hawaii Shippers Council, September 2, 2015

Project Syndicate, which bills itself as the “World’s Opinion Page,” posted on September 2, 2015, a piece entitled “Puerto Rico in crisis,” written by the noted economist Anne Krueger.

Ms. Krueger is the lead author of the most widely referenced paper on the Puerto Rico financial crisis, “Puerto Rico – a way forward,” which is commonly known as the Krueger Report and was commissioned by current Governor Garcia Padilla to chart a course out of the island’s long term economic decline.  A former World Bank chief economist and former first deputy managing director of the International Monetary Fund, Krueger is Professor of International Economics at the School of Advanced International Studies, Johns Hopkins University, and Senior Fellow at the Center for International Development, Stanford University.

The Krueger Report emphasized the need for Puerto Rico to be exempted from Jones Act cabotage, and in her instant op-ed Ms. Krueger continues to call for an Jones Act exemption for Puerto Rico.

Key excerpts:

Puerto Rico ought to be the jewel of the Caribbean. It is not. Tourism has been stagnant for decades, even as travelers have flocked to other Caribbean destinations. European firms doing business in North and South America locate their corporate headquarters in Miami, Panama City, and elsewhere, with almost none choosing Puerto Rico. And now the island’s economy, after a decade of torpor, is declining at an accelerating rate as people leave for the US mainland. Public debt has soared, and the government says it cannot pay.

But there are also disadvantages to this arrangement. For example, Puerto Rico is subject to the Jones Act, which requires using very costly US-built ships and crews for all sea transport to and from the mainland. The island must also comply with the federally mandated minimum wage, despite an income level about half that of the poorest US state. And municipalities cannot benefit from Chapter 9 of the US bankruptcy code.

For the Puerto Rican authorities, this means making the island friendlier to business, including by removing onerous labor-market regulations. Meanwhile, the US government could exempt Puerto Rico from the Jones Act, extend to it Chapter 9 bankruptcy coverage, and align the island’s welfare and labor requirements with its productivity level.

Read more at Puerto Rico in Crisis

HSC: Unions Reply to Krueger

PDF: Krueger Report


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

Aloha Pregnancy Care Center


Antonio Gramsci Reading List

A Place for Women in Waipio

Back da Blue Hawaii

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute


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 Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together



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

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui


Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii


National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport


OHA Lies

Opt Out Today


Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii



Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii


Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu


West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii