Monday, December 9, 2024
Hawai'i Free Press

Current Articles | Archives

Monday, October 23, 2017
CNN’s Zakaria calls for Jones Act repeal as part of Puerto Rico aid package
By Michael Hansen @ 12:54 PM :: 4731 Views :: Jones Act

CNN’s Zakaria calls for Jones Act repeal as part of Puerto Rico aid package

by Michael Hansen, Hawaii Shippers Council, October 23, 2017

CNN published on October 22, 2017, the op-ed video, “Zakaria proposes ‘grand bargain’ on Puerto Rico’s debt.” Zakaria’s grand bargain would involve the federal government restructuring the Territory’s $90 billion of outstanding debt and substantially changing the federal regulatory structure for the Commonwealth in exchange for local economic reform and government restructuring.

Zakaria stated the federal regulatory changes and local reforms he referenced were “proposed by economist Anne Krueger.”  That is a reference to a June 2015 study, “Puerto Rico – A Way Forward,” also known as the “The Krueger Report,” after the lead author, Anne Osborn Krueger. At the time, Krueger was and is currently, Senior Research Professor of International Economics, School for Advanced International Studies, Johns Hopkins University. Previously, Kruger was First Managing Director, International Monetary Fund, 2001-2006, World Bank Chief Economist, 1982 – 1986.

The former Puerto Rico Governor Alejandro García Padilla commissioned the Krueger Report to study the Commonwealth’s dire financial situation and make recommendations. The results of the report were incorporated into Gov Garcia Padilla’s Puerto Rico Fiscal and Economic Growth Plan issued on September 5, 2015. Gov Garcia Padilla served a single four year term choosing not to run for reelection in 2016 largely due to his inability to rectify the Commonwealth’s financial situation.

Among the key reforms recommended in The Krueger Report was to fully exempt the Commonwealth of Puerto Rico from federal maritime cabotage popularly known as the Jones Act and formally in American jurisprudence as “the coastwise laws of the United States.” This undoubtedly what Zakaria meant by his statement, “repealing the Jones Act, which has made shipping goods to the island more expensive.”

This is exactly what U.S. Senator John S. McCain III (R-AZ) proposed with introduction on September 28, 2017, a bill, “To exempt Puerto Rico from the coastwise laws of the United States (commonly known as the ‘Jones Act’’).”

Puerto Rico needs a broad program of federal and territorial reforms as described by Krueger including a full Jones Act exemption, and as Zakaria mentioned a federal restructuring of the Commonwealth’s debt.

Key excerpts:

Fareed Zakaria floated the idea of a "grand bargain" between the federal government and the people of Puerto Rico to resolve the country's economic crisis.

During his 'What in the World' segment of his weekly show on Sunday, he explained how the deal could work.

"The federal government should commit a large, multi-year, multi-billion dollar program of investment, should restructure Puerto Rico's debt and repair the island's infrastructure."

"In return, after conditions get normal, the leadership of the commonwealth should also make some difficult economic reforms" he said.

Zakaria pointed out that many of these reforms have already been proposed by economist Anne Krueger. They're geared to making the island more business-friendly to bring back jobs, increase the tax base and stop the outflow of people.

Krueger's proposals include reducing the cost of electricity and repealing the Jones Act, which has made shipping goods to the island more expensive.

Her most controversial proposal involves lowering the minimum wage, implementing welfare reforms and lowering benefits to make Puerto Rico more competitive compared with other Caribbean economies.

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