Home
/
RELIGION & LIBERTY ONLINE
/
Not Jonesing for the Jones Act
Not Jonesing for the Jones Act
Jul 1, 2025 7:44 PM

An obscure maritime law hit the news recently because of catastrophic weather and its consequences. Let’s hope we never have to hear about it again.

Read More…

Just a few years ago, very few people knew or discussed the Jones Act. Now everyone is talking about it. In a colossal but somewhat predictable fiasco, while Puerto Rico was being pummeled by Hurricane Fiona, the Jones Act prevented a cargo ship from docking off its coast to deliver some 300,000 barrels of much-needed diesel fuel. The Act dates to 1920 and is formally known as Article 27 of the Merchant Marine Act. It regulates “cabotage”—a word that sounds sinister but isn’t. Cabotage is territorial merce between ports within a country. Eighty percent of the world’s coastlineshave cabotage laws. The Jones Act stipulates that those goods traveling between U.S. ports must travel on U.S. ships, constructed in the United States, owned by U.S. citizens, staffed with a crew of U.S citizens or U.S permanent residents—and be flying an American flag.

Last week, as Hurricane Fiona ravaged Puerto Rico, Governor Pedro Pierluisi petitioned President Biden to allow a ship flagged with an open registry, which means it was not registered as a U.S. ship, to deliver diesel at a port in Ponce. The ship had previously been headed to Europe but made a diversion to Puerto Rico. This is the second waiver of the Jones Act in Puerto Rico in five years; the last was offered by President Trump in 2017 during Hurricane Maria.

The Jones Act is promulgated under the guise of national defense. Without much effort we can make anything fall under the category of national defense. It plays to political interests well because it stokes the fears of the moment. For example, some claimed during the COVID pandemic that mask production was a matter of national security, and so all masks should be made domestically. Economics tells a different story, however, and warns of overly burdensome regulations and their untended but very real consequences.

The unintended consequences of the Jones Act are that it serves special interests; makes merce more expensive by reducing the number of qualifying ships, which in turn means more trucks on the road to transport goods; and thwarts emergency response efforts, especially to Puerto Rico and particularly during hurricanes. In the pursuit of a free and virtuous society, we want to avoid institutionalizing winners and losers. In this case, the losers are spread far and wide—American consumers and those living in the path of hurricanes. The winners are small and better able to organize politically for the preservation of the status quo. The beneficiaries of the Jones Act include U.S. shipbuilders, merchant mariners, and various merchant unions. The cost is estimated annually to be in the tens of billions of dollars in lost output and uncaptured business revenue. This is a situation of concentrated benefits and dispersed costs. The costs are spread out over the American public and, as such, no one person has a powerful enough incentive to fight against the protective measures. The incentives of the “winners” are very powerful because they stand to gain significantly from the protection, so they lobby quite effectively to preserve it.

The costs of the Jones Act, even outside the egregious incident in Puerto Rico last week, are well known. Vox magazine has referred to it as “protectionism and exploitation at its worst.” The Economist magazine, no bastion of free-market thought, decried it back in April as a protectionist measure that pushes up prices and has almost wiped out domestic shipping. These consequences are catastrophic because e on the heels of a pandemic that brought its own supply chain and transportation challenges. Further, it exacerbates rising prices in the throes of a 40-year peak in inflation.

The Jones Act does not serve American national security interests, nor does it serve Americans. Rather, it institutionalizes privilege, and it makes the rules governing shipping plex and murky. It imports scientism into merce, placing an exaggerated trust in the central planners and their methods to know not only what is best but how best to solve large-scale problems. It should strike us as ridiculous that we need the permission of the president of the United States to have a ship dock to deliver needed gas supplies during a hurricane. The policy takes something simple and bureaucratizes it when what we need is to democratize the process of merce in an effort to discover the best ways to transport goods to the people who need them.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Why the Federalist Papers Still Matter
Even at America’s top schools, says Peter Berkowitz, graduates leave without reading our most basic writings on the purpose of constitutional self-government: It would be difficult to overstate the significance of The Federalist for understanding the principles of American government and the challenges that liberal democracies confront early in the second decade of the 21st century. Yet despite the lip service they pay to liberal education, our leading universities can’t be bothered to require students to study The Federalist—or, worse,...
Natural Law and Winter’s Bone
I was privileged to participate this week in a conference at the Katholieke Universiteit Leuven, hosted by the Division for Roman Law and Legal History, “Law and Religion: The Legal Teachings of the Protestant and Catholic Reformations.” My paper today was titled, “Natural Law and Subsidiarity in Early Modern Reformed Perspective.” In this paper I explore some of the theological context in the sixteenth century among Reformed theologians like Wolfgang Musculus, Peter Martyr Vermigli, Jerome Zanchi, and Franciscus Junius that...
Kishore Jayabalan: Vatican Radio interview on French election
On May 15, Socialist Francois Hollande will be sworn in as France’s new President following elections this past weekend. According to Vatican Radio, Hollande is vowing to overturn many of current President’s Sarkozy’s economic reforms, in an attempt to relieve France’s current debt crisis. One of Hollande’s goals is to increase taxation on millionaires to 75 percent. With more than a quarter of a million French citizens already working in London, this type of heavy taxation may cause an exodus...
Legatus: Celebrating 25 Years of Supporting Catholic Business Professionals
Legatus, an international organization of Catholic business professionals, is celebrating its 25th year of existence. The mission of Legatus is to help its members and spouses live out their Catholic faith and to spread that faith “through good works, good ideas, and high ethical standards.” The current issue of Legatus magazine features an article by the Acton Institute’s Michael Matheson Miller, research fellow and director of Acton media. Entitled ‘Poverty, social justice, and the role of business’, Miller points out...
Acton on Tap: Calvin Coolidge and the Spirit of Federalism
When es to the presidency, there are times when historians find the need to reevaluate a president. Often it is because of a crisis, war, or other current events. I can think of no other president that needs to be reassessed more than Calvin Coolidge. Thankfully, Amity Shlaes has written a new biography of Coolidge that will be available next month. Coolidge preceded a progressive era and fought not just to shrink government, which he did successfully, but harnessed the...
Victor Claar on Trade
Is ‘fair’ trade really more fair or more just than free trade? Does fair trade create an unfair advantage that hurts the poor more than it helps? There are two different opportunities over the next few days where you can have the chance to explore this topic further. Acton will be hosting Professor Claar for an online discussion tomorrow, May 9, at 6:00pm ET. In the AU Online session of his popular lecture Fair Trade vs. Free Trade, he will...
A Field Guide to the Baseless Claims and Outrageous Canards of the Liberal-Progressive
Review of The Tyranny of Cliches: How Liberals Cheat in the War of Ideas, by Jonah Goldberg, (New York, NY: Sentinel, 2012) With proper training, and maybe a bit of experience on the debate team, it’s easy to recognize logical fallacies in an opponent’s argument. When es to popular give and take, the sort of thing we have so much of now on opinion websites and news channels, there hasn’t been decent preparation for arguments outside the columns and blog...
Samuel Gregg: Europe’s Right in Disarray
France elected a new president yesterday, the socialist Francois Hollande who has vowed to rein in “Anglo-Saxon” capitalism and dramatically raise taxes on the “rich.” Voters turned out Nicholas Sarkozy, the flamboyant conservative whose five-year term was undermined by Europe’s economic crisis, his paparazzi-worthy lifestyle and bative personality. But Sarkozy’s defeat exposes “a crisis of identity and purpose that presently afflicts much of Europe’s center-right,” according to Acton Research Director Samuel Gregg in a new analysis on The American Spectator....
You Can Keep Preaching About Tax Fairness, Mr. King, But Cut a Check First
Novelist Stephen King recently added his voice to the chorus of superrich clamoring to be taxed more. He knows his critics will call for him to “Cut a check and shut up,” but King says he’s not going to be keep quiet. He believes he and other uberwealthy citizens have a moral imperative to pay more. Clive Cook has a solution that should satisfy both sides of the issue. As Cook says, “it’s childishly simple once you recognize that two...
Teachers are Blessing this World Today
“The two most powerful forces in your life are your thoughts and your words.” — Thomas McDaniels When I ponder this quote, I can’t help but think back to the teachers in my life. After all, they were the ones who taught me to read, write, think, and present ideas clearly. They equipped me to harness these “powerful forces” as I now go into the world to bless others. During Teacher Appreciation Week, it is appropriate to think about the...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved