Repeal the Jones Act
Summary
This episode features William L. Anderson arguing for the repeal of the Jones Act, a 1920 law restricting U.S. port-to-port shipping to domestically built, owned, and crewed vessels. Anderson contends that the legislation is a destructive protectionist measure that raises consumer prices and infrastructure costs without successfully revitalizing the U.S. shipbuilding industry. He highlights that the U.S. remains a marginal player in global commercial shipbuilding, with costs significantly higher than international competitors. The discussion concludes that the law is a naked wealth transfer…
Topics discussed
Introduction: The Jones Act as a destructive law
Origins and basic requirements of the Jones Act
Specific legal provisions and ownership rules
Pre-WWI shipbuilding decline and post-war surplus
WWII shipbuilding surge and the Liberty ships
Modern US shipbuilding failure vs. global competitors
Historical context: US never a major shipping force
Post-WWII decline and loss of competitive edge
Propaganda from unions and Congress supporting the Act
Economic costs: higher prices and infrastructure damage
Rent-seeking dynamics and dispersed costs
Impact on freight modes and the irony of the law
Conclusion: Call for repeal and final remarks
Listen ad-free on Castria