> 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.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.
bluGill|1 year ago
FrustratedMonky|1 year ago
But, not seeing how allowing foreign built ships, with foreign crews, owned by foreign companies, somehow leads to a stronger US shipping industry.