The Jones Act : an economic and political evaluation

Abstract

On June 5, 1920, the Merchant Marine Act of 1920, also known as the Jones Act, became law. The Jones Act, a cabotage law, restricts American waterborne domestic trade to vessels flagged in the United States, owned by citizens of the United States, operated by citizens of the United States, and built in the United States. This highly restrictive law has become an integral part of American maritime policy. A brief history of the maritime policies of the United States and the Merchant Marine Act of 1920 is followed by an evaluation of the effects of the act on the maritime and shipbuilding industries, an evaluation of the effects on the American economy, and an evaluation of the political debate surrounding the act. Conclusions are made regarding the effects of the act and recommendations are made for the future of the act.