From the President Jun 25
The Jones Act Ain't Broke, So Don't "Fix" It
by admin
Isn't it about time that the claims regarding the benefits to American consumers resulting from foreign competition be examined.

 

When clothing and shoes were made here in the U. S., they were affordable and of high quality. They even came precisely sized. A shirt could be had in a precise neck and sleeve size without searching for a store that was fully stocked. Shoes came in more than a standard D width. Now the so-called bargain foreign made goods offer fewer choices, wear out faster and except for poorest grade, cheapest quality items, the cost no less than the superior American-made, union-made goods of yesteryear.

 

Consumers have long noted that name-brand goods haven't been priced lower even though they are now universally produced in sweatshop conditions by workers making meager hourly wages. The importers and fashion houses that supply nothing more than a brand name simply make more money. Society pays more because the opportunity to earn a reasonable livelihood has been thwarted for displaced production workers.

 

The shipbuilding industry has—in theory—been insulated from foreign competition for national security reasons under the Jones Act. Since the First World War, the need to maintain a strong merchant marine for national emergencies has been secured by the Jones Act. Under that law, Congress restricted coastal shipping between U.S. ports to U.S.-built vessels owned by U.S. citizens and crewed by American citizens. Despite the intent of the law, lax enforcement and generous politically-motivated waivers have weakened its impact, undermining the economic viability of the U.S. shipbuilding industry to the point that, today, only six major shipyards remain and each of them is in a precarious financial state. In its “protected” state, the U.S. shipbuilding industry has shrunk to the point that it now accounts for less than 1 percent of worldwide shipbuilding.

 

Anyone who has happened to notice the wars in Iraq and Afghanistan or the oil spill disaster in the Gulf of Mexico (involving foreign-based BP, Halliburton and Transocean to name but three) can see the need for national emergency preparedness.

 

A wrongheaded bipartisan attack on the Jones Act by candidates for Congress in Hawaii who want their state exempted should be scrapped. The national security issues are paramount. The likely damage to a vital industry and those employed by it is overwhelming. And, even proponents of repeal cannot claim proof of any advantage to American consumers.

 

At a point in our nation’s history when unemployment has become a national crisis, it is irresponsible to flirt with any action that would result in even more unemployment. Stronger enforcement of the Jones Act—including:

  • Ending the current long-term leasing practices by the Department of Defense that skirt the law;
  • Re-examining the Coast Guard’s policy that allows shipyards to assemble ships from imported parts; and
  • Withdrawal of Jones Act waivers for barges and drilling platforms would give the U.S. shipbuilding industry a healthy boost.

 

A wrongheaded bipartisan attack on the Jones Act by candidates for Congress in Hawaii who want their state exempted should be scrapped. The national security issues are paramount. The likely damage to a vital industry and those employed by it is of grave concern. And even proponents of repeal cannot claim proof of any advantage to American consumers.

 

The Jones Act ain't broke, so don't "fix" it.

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