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In 1920 a
congressman from Washington State proposed, passed a law through congress known as the
Merchant Marine Act of 1920, aka The Jones Act. What the Jones Act does is
requires any goods going from one US port to another port in the US to be
shipped on a ship made in the US and captained
by an American.
The idea initially
was to promote US jobs in shipbuilding and crews. Of course in the modern era
something different is happening. In the modern world not many ships are built
in the US anymore. So what happens now is you can ship from one port to another
on trains not built in the US, you can ship on planes not built in the US, you
can even have a truck going from one port to another driven by someone from
another country and built in another country. But you still can't have an item
put on a cargo ship in New Orleans and have it dropped off in a port in New
York unless that ship was built in the US, flying a US flag, and crewed by
Americans.
The US council of
economic advisers has found that this law costs each job gained $250,000 per
job. About 1 billion dollars a year. So
unless each of those jobs pays more than
$250,000k per year, this is a loss that taxpayers are covering.
If the Republicans
in office want to cut unnecessary laws and spending, how about cutting this
$1 Billion a year expense instead of trying to cancel Sesame Street? Because rich lobbyists want to keep
it around, that's why.
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