What with everything going on in the world, stewing over an obscure, century‐old maritime law might seem odd. But the Jones Act really does warrant such consternation. It’s not just a terrible law that hurts you, me, and everyone we know—especially if they live in Puerto Rico or drive to work on the East Coast. It’s also a cautionary tale against government industrial policies, which can have unintended consequences far beyond higher prices or budget overrun. The Jones Act, formally known as Section 27 of the Merchant Marine Act of 1920, was ostensibly intended to ensure adequate domestic shipbuilding capacity and a ready supply of merchant mariners and ships in times of war or other national emergencies. Today, it requires that any domestic waterborne shipping of goods be conducted on vessels that are built, owned, flagged, and crewed by Americans. As a result, the U.S. has one of the most (if not the most) restrictive shipping systems in the world.
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