The Jones Act
Categories: Regulations, International
The Jones Act was enacted by Congress around WWI as protectionist legislation. Also known as The Merchant Marine Act of 1920, The Jones act set some ground rules (no pun intended) for maritime commerce.
The most notable thing it did was require goods shipped between US ports to be transported on ship that are built, owned, and operated by US citizens or permanent residents. The reason this is notable is because, while it helped out those owning those transport lines now, it increased shipping costs, particularly to Hawaii, Alaska, and Puerto Rico.
While the US boasts of big burgers, big cars, and a big military, it has a pretty small supply of shipping ships compared to the global supply. So while the demand for shipping goods increased, the US supply of ships legally allowed to make those trips remained small, making shipping expensive from lack of competition. Naturally, this cost was passed on to consumers. Some cite The Jones Act as one of the leading economic problems for Puerto Rico. Ouch.
The Jones Act also did some other things, like giving sailors the right to seek damages.