A Feeble Defense of the Jones Act

Rep. Duncan Hunter is not pleased with theCato Institute ’s efforts to repeal the Jones Act. Taking notice of arecent op-ed I penned criticizing the California congressman ’s support of this costly law, Huntertook to the pages of the same newspaper last weekend to defend his stance. It ’s worth reviewing the piece in full, as it recycles several arguments typically offered in support of the Jones Act—and exposes some glaring weaknesses.Hunter begins his defense of the Jones Act by disputing accusations that the law negatively impacts Puerto Rico ’s economy:Like many opponents of the Jones Act, the CATO Institute attempts to conflate this 100-year old law with the struggles of Puerto Rico ’s economy. They repeat the same tired argument that the Jones Act is responsible for high prices and economic instability, going so far as to make the ridiculous implication that the Jones Act adds $5 to the cost of a pint of ice cream.A recent economic study disputed these price discrepancies but if concerns remain, it is important to recognize that Puerto Ricans have other options. Most of the ships that call on Puerto Rico are foreign flagged and current law allows them to deliver as many goods from foreign ports as Puerto Ricans can consume. A 2013 Government Accountability Office Study failed to conclude that removing the Jones Act would benefit Puerto Rico and, in fact, acknowledged that the regulation provides a number of advantages. Other studies have found that the Virgi...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs