economy
Trump is right to waive the Jones Act. Congress should eliminate it entirely
The Iran war has caused “the largest supply disruption in the history of the global oil market,” according to the International Energy Agency.
TL;DR
- The Jones Act requires U.S.-built, owned, and crewed ships for domestic cargo transport, driving up costs.
- The fleet of Jones Act-compliant ships has drastically decreased since 1950, and building new ones is extremely expensive.
- The law directly increases energy prices by inflating shipping costs for crude oil, gasoline, and petroleum products.
- A temporary waiver of the Jones Act by the Trump administration is intended to reduce oil prices impacted by the Iran war.
- Studies suggest eliminating the Jones Act would lower East Coast fuel prices and increase consumer surplus.
- The article advocates for the permanent elimination of the Jones Act, arguing it is a relic that hinders national security and economic efficiency.