If you are protected from facing competition, then you don’t need to actually compete. Therefore, you don’t develop the competitive advantages. You remain at a competitive disadvantage, but it doesn’t matter since you don’t actually have to face the competition… until someday when the protection is removed and you are left to face the more advantaged competition.
tivert|1 year ago
However, it's not uncommon for a company or industry to fail to develop a competitive advantage, and then go bankrupt and disappear.
Without the Jones Act, it's quite possible that the US shipbuilding industry may have ended up even more moribund than it is now, decades ago.
MostlyStable|1 year ago
Without it, we probably wouldn't have a thriving US shipbuilding industry, but we would have significantly (probably orders of magnitude more) intra-state shipping, which would require more ships that would most likely come from close allies which would boost _their_ shipping industry.
For strategic purposes, obviously having our own shipping industry would be better, but that's apparently not on the table. I'll take, as a close second best option, an improved shipbuilding industry of our allies, with a heaping side helping of massive economic benefit.
throw0101c|1 year ago
You mean like all the (e.g.) garment and other factories competed against foreign manufacturers… and the companies decided to close up shop and move overseas?
The main garments that are still made in the US are those for the military due to domestic production regulations in procurement rules.
amluto|1 year ago
Steel making and ship building are done with heavy machinery, at least to a sufficient extent that I would expect wages to matter less.
FrustratedMonky|1 year ago
There are industries the US should support for defense, you don't want to be buying your weapons from your enemies. See the drive to bring Chips back to the US.
Allowing wonton outsourcing is finally being seen as maybe not a forgone good.
tolciho|1 year ago