Economic Consequences of the Jones Act: A Burden on American Shipping The Jones Act, a 1920 law that regulates the domestic shipping industry in the United States, has been criticized for its restrictive policies that stifle competition and drive up costs. The Act requires that all goods transported by sea between U.S. ports be carried on ships built in the United States, owned by U.S. citizens, and crewed by U.S. citizens. As a result, the law distorts the domestic shipping market, leading to a lack of competition and higher prices for consumers. Economists argue that the Jones Act's restrictive policies have significant economic consequences, including higher transportation costs, reduced economic growth, and a loss of jobs in the shipping industry.
The Jones Act distorts domestic shipping substantially, with great economic damage as a result.
