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Saturday, October 14, 2023
Crony Capitalism: Jones Act in the News
By Grassroot Institute @ 8:05 PM :: 1537 Views :: Jones Act

Crony Capitalism: Jones Act in the News

from Grassroot Institute, October 13, 2023

George Will calls Jones Act 'crony capitalism'

>> Washington Post columnist George Will weighed in recently on the Jones Act in a commentary titled "Ahoy! It’s crony capitalism sailing in and out of U.S. ports."

Will said the 103-year-old federal maritime law started as "garden-variety political parochialism," but has survived "because it is defended by the 'reliance interests' — industries tethered to government favoritism — that industrial policy, a.k.a. protectionism or crony capitalism, invariably produces."

He added: "Predictably, … protecting the shipping industry from competition increased costs of shipped goods (costs passed along to U.S. consumers), decreased pressure for efficiencies and contributed to the shrinking of U.S. shipbuilding."

C3 critique of Jones Act cites Grassroot research

>> On Wednesday, C3 news magazine published an article titled "For a cleaner, more competitive economy, repeal the Jones Act."

C3 writer Jeff Luse noted that America's protectionist Jones Act is "the most restrictive cabotage law in the world, … hurts U.S. competitiveness in the modern global economy, makes domestic goods and energy more expensive for Americans, and is counterproductive to America’s national security interests."

In addition, "While America has ascended as the top energy producer and exporter in the world, the Jones Act has forced residents of the Northeast [and Hawaii] and our territories to rely on foreign oil and gas."

The article cites numerous sources, including research published by the Grassroot Institute.


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