Home
/
RELIGION & LIBERTY ONLINE
/
Not Jonesing for the Jones Act
Not Jonesing for the Jones Act
Oct 14, 2026 1:10 AM

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
When you mock Christianity, you’re mocking women and minorities
Last month a judicial nominee was asked during a Senate hearing if his membership in the Knights of Columbus might impede his ability to judge federal cases fairly. Senators Mazie Hirono (D-Hawaii) and Kamala Harris (D-California)both questioned Brian C. Buescher about his membership in the Catholic service organization. Hirono even asked Buescher if he would quit the group if he was confirmed “to avoid any appearance of bias.” In response to this blatant anti-Catholic bigotry, Rep. Tulsi Gabbard (D-Hawaii) wrote...
Homeschooling a parent’s choice, not the state’s
Decades ago, when I was first ordained a priest, I shared a prejudice that many people hold: I thought homeschooling families were odd. I believed schooling children at home deprived such children of opportunities to be with other children causing them to be less able municate with others, socially awkward and reclusive and narrow in their experience and understanding of the world that they would one day have to grow up in and navigate. That was until I actually met...
The Brexit deal defeat and confidence vote: Why Christians should care
UK Prime Minister Theresa May suffered the largest defeat in modern history last night, as Parliament rejected her Brexit deal by a vote of 202-432; she now faces a confidence vote that could turn her out of office.Rev. Richard Turnbull – who is both ordained in the Church of England and the directorof the Centre for Enterprise, Markets, and Ethicsin Oxford – explains the likely es in a new essay forthe Acton Institute’sReligion & Liberty Transatlanticwebsite.Christians should be concerned about...
C.S. Lewis on how the humanitarian theory of punishment threatens liberty
Over the past decade conservatives have, once again, e champions of criminal justice reform. To some this appears to be a surprising development. Why would conservatives, the self-proclaimed champions of law and order, have concern for the treatment of criminals? On reflection, though, the interest and connection es more obvious. Conservatives are concerned with how law and order leads to human flourishing, and so are necessarily troubled by a criminal justice system that is neither just nor serves the interest...
Govt may deny homeschool families custody to teach tolerance: ECHR
The government has the right to remove children who are homeschooled from their parents’ custody if authorities believe their parents will not teach children “tolerance,” the European Court of Human Rights (ECHR) ruled last week. The Wunderlich family had claimed German authorities violated their innate human rights by denying them custody and forcibly enrolling their children in public schools to further their “social integration.” But the ECHR disagreed. Nearly three dozen police and social workers stormed the family’s home in...
Radio Free Acton: Ashanti Bryant explains AmplifyGR; What is a government shutdown?
On this episode of Radio Free Acton, Acton’s Tyler Groenendal speaks with Dave Hebert, professor of economics at Aquinas College, about the current government shutdown and what effect is has on individuals and businesses. In another segment, we have a conversation munity revitalization with Ashanti Bryant, director of education at AmplifyGR, a nonprofit working to build flourishing neighborhoods in Grand Rapids, Michigan. Check out these additional resources on this week’s podcast topics: Register here to hear Ashanti Bryant speak on...
Understanding the quantity theory of money
Note: This is post #106 in a weekly video series on basic economics. The quantity theory of money states that there is a direct relationship between the quantity of money in an economy and the level of prices of goods and services sold. According to the theory, if the amount of money in an economy doubles, price levels also double, causinginflation. The consumer, therefore, pays twice as much for the same amount of the good or service. In this video...
Toward ‘humanomics’: Deirdre McCloskey on honoring the world of human creation
In her transformative Bourgeois Era trilogy, economist Deirdre McCloskey challenged our popular theories about the causes of our newfound economic prosperity, arguing that it sprung not from new systems, tools, or materials, but rather the ideas, virtues, and rhetoric behind them. “The Great Enrichment, in short, came out of a novel, pro-bourgeois, and anti-statist rhetoric that enriched the world,” she writes. “It is, as Adam Smith said, ‘allowing every man [and woman, dear] to pursue his own interest his own...
What Christians should know about marginal tax rates
Note: This is the latest entry in the Acton blog series, “What Christians Should Know About Economics.” For other entries inthe series seethis post. What it means: A marginal tax rate is the amount of tax paid on an additional dollar of e. The Explanation: What is the tax rate you pay on your current e? For most Americans, the question is surprisingly difficult to answer. The reason we don’t know our tax rate is because we have a progressive...
The irony of Patagonia’s tax cut ‘protest’
In response to the recentRepublican-led tax reform—which reduced corporate taxes from 35% to panies have responded by handing out surprise bonuses, increased 401(k) matches, and various wage bumps. For pany like Patagonia, however, the tax cuts have been labeled “irresponsible,” a symbol of the federal government’s reckless apathy. In response, Patagonia CEO Rose Marcario recently announced that the outdoor pany will donate its $10 million tax-cut windfall to its preferred partners in battling climate change. “Instead of putting the money...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved