And the problem is that the US doesn’t have an international merchant marine. It’s gone. There are less than 100 US flagged civilian large ships. The Jones Act has FAILED hard because it does nothing to ensure that ships calling in US ports adequately pay their crews.
You hit on a subject near and dear to my heart... Korean companies using sub-contractors for labor or entire fabrication of a product. In the early '00's we did a world-wide bid for ASME Section VIII, CR-MO alloy pressure vessels for a project. A Korean company won the bid and was awarded the contract. That Korean company did NOT reveal to us that they would be using sub-contractors to fabricate these vessels. To keep a really, really long story short, once the vessels were received at the US sites, Positive Material Identification revealed that the welds were not CR-MO, but carbon steel, which made the vessels useless and the vessels had to be replaced. LOTS of $$$ and a big schedule delay. The reason? The Korean prime contractor did not monitor their subcontractor for quality. Buyer beware.
@@williamgibb5557 We (the company) did, then turned it over to the lawyers. I never heard what the outcome was, after the new vessels were fabricated in Spain, and Installed, I was assigned to another project. I did have to give a deposition a year later, but that was the end of my involvement.
Ugh the lack of investigation by journalists on this subject is extreamly frustrating. Thank you Dr. Mercogliano for your continued and informed discussion on the manner. It's ridiculous in that I'm seeing both Left and Ring wing media sources really showing their lack of professionalism and a strive for clicks instead of publishing truthful and authentic reports.
@@erikjohnson3255 Exactly. This is the primary reason why i'm now longer watching mainstream news anymore including CNN, Fox, MSNBC, etc. It sucks to say, but they dictate the narrative. UA-cam surprisingly has become an important resource in getting and receiving quality and professional subject analysis and reporting.
@@jimmyrk3 not the way he talks-condescending and spiteful, and I just passed the 3-minute mark where Sal is only a few seconds into stossel's apparent rantcast.
17:01 Great Britain, France, the Netherlands, Germany, do not have the Jones Act. The US does. Worldwide, 40% of shipyards have closed. In the US, 65% has closed. THE JONES ACT DOESN'T WORK! It makes remote life in remote communities harder and more expensive. Yes, for national security, you might want a shipbuilding, and shipping industry that is local. But it is unconscionable that national security needs for everybody in the country should be financed exclusively on the backs of small remote communities. It doesn't work, and it is unfair that poorer communities should pay for it. Just subsidised it directly from national taxes.
Transportation to small remote communities is always more expensive, whether it is an island, in the mountains or across the plains. What is your source for the 65%? There is a need for maritime reform, no question. However repealing the Jones Act does not guarantee what you think.
I watched John Stossel's video and after looking up the Merchant Marine Act of 1920, I was led to your channel and learned about it. I subbed and will watch more of your content. Thank you!
Was just about to send John a link to your Peter Zeihan commentary, since as much as I like John, he totally ignored any history of the act. Thanks for addressing this so fast.
Once again you contribute so much to our information and knowledge base on this (and other) strategic, fundamental issues. If only stossel and other "journalists" would be so attentive to data and to being truthful. I'm honored to be a Patron of this superb channel!
Sal-thanks again for a great vid. Most people are ignorant and disinterested about anything beyond their immediate lives and are easily manipulated-I appreciate you voice of clarity-hopefully some will get it. I can't help but draw parallels to the US giving away so much of our economic activity through PPP , NAFTA etc.-result-aggressive China and many American's without the good jobs the help give self-esteem. Corporate interests win again.
Sal, you've been critical of the state of the Military Sealift Command, the American maritime fleet, and the (lack of) American shipbuilding capacity. IMO, persuasively. But that leads me to this question: does the Jones Act achieve its goals? To the extent the answer is no, what changes would you recommend?
Love it when Sal's hair bursts into flames! Seems to me that without the Jones act, shipping would be in the same life raft as our ports being without dedicated dredges.
It’s all about “Clicks”! It’s the same reason Tesla is the brand mentioned if there is an accident. Any and all other brands are ignored. Also the other brands advertise and Tesla doesn’t. Love your channel.
25:30 "Why didn't you get a long-term contract to get a reliable supply of gas or whatever you needed to run your plants?" That's a financial solution to a physical problem. If they don't have enough ability to bring molecules of fuel into the region, the contract is obviously no solution.
Another impressive episode. Besides subsidies, or domestic tariffs/quotas, we could always add a law that if war occurs, whereby we were unprepared to respond with necessary industrial capacity, especially against a country we allowed to take over our manufacturing/skilled industry, that anyone who supported such policies will be fined/taxed to impoverishment, and their of-age family members will be automatically drafted to the front lines of said conflict.
Puerto Rico has had power problems for a long time. I lived in Fajardo 20 years ago and the power would go out regularly, they would shut down the local pump station for a few hours every day to take some of the load off the grid. The hotels on the island have backup generators and water.
Sal, You need to make the podcast rounds and explain to folks just how diluted our maritime position is. Multiple other nations are building Naval, and shipping capacities with the express purpose of weakening our national security. Libertarian's should appreciate more then anybody how the jones act supports American security by creating a simple requirement that should create security; can you imagine the amount of bureaucracy that would be required to do this if the American market wasn't doing it. Keep up the good work and fighting for our national security
This goes along with the idea of being careful what you wish for; other countries will end up paying the bill for maritime security and they won't like it.
Why doesn't John look at domestic trucking?Or trucking in Canadacrossing the border? The last Land Line Magazine figures i saw state 65% of over the road truckers are foreign born nationals, working 70 hours a week for no overtime and benefits for less then minimum wage so he can have free shippimg. Sal you are 100% right on this. Waving the Jones Act would open the flood gates to a business led takeover of the interstate shipping routes utilizing indentured servants from overseas.
I was once an OTR trucker and I don’t agree with that, first off I once actually did do cross border work into Canada as an American trucker, and 65% of OTR drivers are not foreigners. You never really see American drivers go to Mexico because Mexico is not a society where American businesses can succeed at that level due to corruption and lower wages, but Canadian drivers come here and American drivers go there
Many of the parts in "American cars" are foreign. More and more "American" brands are made in Mexico now. Much of the alleged innovation has been cost and quality cutting measures.
The first most efficient to carry liquids in the country is pipelines, the second is by ship, the third is by rail and the fourth by trucks. For some reasons the pipelines building is a big no no, the ships under Jones act are not some kind of NGO rescue ships, they just carry fuel whithin the US. Foreign ships might found it a lot more profitebal to brink fuel to devestated areas, charging the NGO for it. It still has nothing to do with the Jones Act.
Corporations will happily throw the country under a bus, all day, every day, to make a little extra profit. We see it all the time. Regulation is needed.
18:00 The fact that we subsidize interstate highway systems (and other land transportation) is the big detriment to US maritime The libertarians have a good answer for that one: stop the subsidy Ludwig von Mises talked about how interventionism creates problems, and the proper solution is to stop the intervention but governments use the problems to justify further interventions (a particularly nerdy but I think apt term is "iatrogenic escalation", iatrogenic from the medical context where the purported treatment causes the disease)
The "efficiency" they talk of is the ability to exploit workers and conduct unsafe operations. It's how much money owners can extract, not how much useful work gets done.
@user-pz8bl3uz2z where did say people do not have their hand out. thats exactly my point midwit. I see a lot of workers exploiting employers . dont worry you have no reason to argue. Your worldview has already won but the results will just be more of the same. more and more poverty as the marxist worldview works its magic.oh and corporations are government created entities. Thing is america is corrupt, immoral and marxist through and through and its not just the billionaires . its all the way from the top to the bottom. like i said you already won. so enjoy the victory
@user-pz8bl3uz2z america will not survive. Deadliest combination of 50 years of marxist propoganda and dumber than a bag of shit. Marxist propoganda works the best when a people have rejected God and no longer have morals. It works of the principle of greed and envy. this class act here who is thoroughly indoctrinated and probably sings the national anthem and thinks he believes in freedom. sad
Because de-regulating the airlines and the railroads has worked so well for the common man ... and making more wealth never costs lives or national security. I'm *so* glad tye US economy depends critically on TSMC and COSCO. I'm *so* glad someone else has a bugger boat.
The problem I have with this argument for the Jones act, is the USA doesn't not make merchant ships in America anymore, and haven't since 1950. So althoe the Jones act was created in 1920 to protect American workers, it actually hurts us, because we can't deliver merchandise in American ports by any ships is because we don't have American made ships to do it so anything else is forbidden due to the Jones act. So we can either start making American made ships and have them American owned, or use American flagged regardless of where they were made. Shipping in American rivers, lakes, Baltimore ect is 12 percent more efficient then trucks and very very efficient due to hydrodynamics.
Keep in mind is that "national security" is not a thing in Stossel's worldview. His worldview is that every person should have the right to get whatever they want for the lowest price possible. This is good for humanity, but so long as any goverment on earth exists that interferes in markets it's merely a utopian dream.
26:00 Is he just now figuring out what lobbyists do? No, Stossel has been pretty critical of lobbyists in many industries. I'm pretty sure he knows the deal
That ship off PR is a carpet bagger. The same type of person that charges $5000 for a generator the day after a hurricane when the day before it was $500.
Some time ago I was arguing with Collin Grabow and he insisted that the Jones act protects no American jobs and I told him “well it seems the Jones Act is actually pretty effective at protecting the jobs of Cato writers arguing for its repeal” He stopped replying after then
Well Sal, since I follow shipping and am also a Campbell I am forced to support you. Okay, not really forced. All the best. I noted that Campbell University seems to have campuses at Fort LeJeune and Fort Brag. Interesting.
The more I watch/listen through Dr. Capt. Mercogliano the Magnificent, the more i realize this guy is an oak. Strong, solid, reliable, and incredibly good at throwing shade.
Would you admit the Jones Act does make US shipping more expensive, but argue that we benefit in terms of reliability and security Is that a fair summary?
It is impossible to argue that using nearly anything American does not make it more expensive. But the question is what do you get with those savings? I stated that we need to revise our maritime laws. I just don't think a repeal is the solution.
28:00 Am I incorrect in remembering that the US government bailed out Chrysler because it was going bankrupt? I remember something similar, but they should have been allowed to fail. Capitalism progresses by letting companies who fail to meet consumer desires fail, and rewarding those who satisfy the consumer.
This vid is predictable. they are going on self interest. Stossel is going on economic principles. you are wasting your time commenting. %0 years of hardcore communist propaganda makes any use of logic and reason with people futile
@@anonymousAJ yeah but the problem with americans is they are communized but under the illusion they believe in freedom. you can give it a shot though.
People forget that stuff has to compete on the global market. If we repealed the Jones Act then all commercial ship building in the US would go overseas. i agree to your point that the US needs some commercial ship building to help move military supplies in a time of war. Also imagine the Staten Island Ferry being run by a Filipino company.
Thank you for your work, it's interesting how you got started, where would you be if the evergreen did not go aground and you started this channel. where would we be.
This is a real can of worms and you open it and spoon it out for us, Sal. This deeply geopolitical issue needs your analysis to help us voters make sense of it. It is painful to see America's dominance and generosity after WWII be returned as competition and hostility in international trade. The new generation in those Asian markets have no idea that their liberty exists because of American efforts to build a decent world after a totalitarian nightmare.
Last defense and information was the best Campbell University is lucky to have you as a tenured professor. It makes you want to know more about your university
THANK YOU, I watched this video and it made my blood boil. The comment section was saying “this is why you should never trust the government 🤓” it makes me so upset.
I'm PRO Jones ACT 100%. It's the only shipping left in The USA. Everyone else are foreigners. Shoot look up who the parent companies of the semi trucks are that run in North America. With the exception of Kenworth and Peterbilt They are all owned by another company overseas.
Based on my background in aviation, I’m trying to imagine someone arguing that because Lufthansa can fly between Germany and various international U.S. airports that they should then be allowed to fly domestic flights within the U.S.
Two things 1. I appreciate your insight into the history of shipping and the Jones Act. Information is important. 2. How many wrestlers will Campbell qualify for the NCAA Men's Wresting Tournament?
The whole F-wording problem is not the Jones Act. The whole problem is the over-taxation and over-regulation of our own shipping industry. Do you really think shipping companies would take the risk of building and registering in sh$t holes if they could keep it all right here for a reasonable premium and not a huge, irrational premium?
That's fair. But it's called a flag of convenience for a reason. Those countries have looser labor laws (no minimum wage) and other very loose laws. It would be a bad look if the U.S had ships with their flag on it who employed sailors for 10 dollars a day. It's not like it would change anything. It would just be bad optics. And sal always likes to leave out the power of unions.
Rather, the whole Mother F-wording problem is the lack of financial accountability by the shippers. That indiviudals are allowed to hide behind limited liabilities and corporate personhood instead of being held personally accountable enables the irrational level of profit seeking that most people hate in big business. It's an accoutnability issue first and foremost; everything else is downstream.
I really do not see how taxation and unions are the boogeyman in this situation. My head is exploding. Let's talk about how much of the GDP growth that has happen in say the last 50 years has been concentrated in a small part of the population. If the economy grows $10 in a year and $7 goes to Sal and you me and anti-union dude have to slip the other $3. This is what happen when income taxes were reduced. This is why you make shit money at a shit job. Because some financial anarchist ( read libritarian )told you at an impressionable age. Taxes are just dead weight loss to the economy. No. Your taxes are even when the go to Nicaragua to build houses are helping keep you safe ( preventing desperate people fleaing their homes and by extension migrating ( a classically destabilizing event throughout history ) ; if your taxes stay here and pay the lady at the DMV ; if the go to pay some of the wages for ship yard workers your tax dollars are strengthening The United States. As Perun lays out in his presentation on the defense industrial base that lasts out this argument in a more conjent fashion. Some portion of this revenue is recovered in taxes (on workers and corporation operating in the US) and services sold to these individual workers. Representing a savings to the government when buying locally (with in US) that is present but hard to quantitate. Basically keeping that money circulating inside the US is a good thing. If forgen ships are built operated and crewed by non-Americans we are giving money away to eather $7 Sal who can afford to gamble (ie. Invest) some of his money in the market and still live better than us on our aforementioned $3 remainder that we split or we are enriching some person or entity ( corporations are not people they can in no way be ' locked up ' when the break the law a fine is just the cost of parking to a sufficiently rich person and im pretty sure you and I are not going to live for 200 years or mergewith a SPAC to have shares sold on a stock exchange) that does not reside in the US and e would have little or no intrest in the people that live there. After the economic benefit of 'offshoreing' generates the gaines are focused on people who are already rich. I raged out on this subject... The next thing that grindes my gears is when some company sits down with one of these think tanks and talks about the workforce. They will usually gently talk about how important they are and maybe how they partner with some school to get feeder system, because they usually gently stat American workers are just not ready to take on the jobs without a lot of training. This is telling me that key PEOPLE are the important part! Each individual worker is a valuabe resource. The problem to my mind is how can that value show up on a balance sheet. How can companies demonstrate that value to 'wallstreet'. So companies downsize and off shore to keep access the the funds they get through the privet markets and by effect of keeping that stock price high or 'stable' protect employees a vested intrest in that company. Or in retirement funds that hold their stock. But the a key factor of that value the workers in not represented. My fear and anger is stoked because we can not even get to this part if the conversation the systematic undervaluation of worker's. Because misguided hate is directed towards Unions are Taxes. The goverment doesn't need to tax high earners at a higher level to make money, they need to do it so that the gains of economic growth are incentivised to be shared across a broader pool of people. Like that fascist lover Henry Ford did when he paid his workers so they could afford buy a model T. It's no different now. Ask your self if saving some money on cheaper shipping or 'lower taxes' is really makeing up for the lost share of GDP growth... P.S. Libritarinas are just financial anarchistists. P.P.S. '$7 Sal ' is in no way related to the wonderful Sal who runs this channel. : p Appologies for my gramer, spelling and tangents
The big fact we have to deal with, is that U.S commercial shipbuilding is severely atrophied. Totally not enough for the needs of the country. and its unlikely we'll be able to get it running again to fulfill our needs. Why not buy foreign ships second hand, and have US crews and flags on them? otherwise will we just have to deal with a paltry sealift/commercial shipping for the foreseeable future?
the 190 shipped docked offshore wasn’t the foreign carriers fault. It was the inability of the ports to work the ships and clear up the que.. the ports weren’t able to clear the backlog because their terminals were full, their terminals were full due in part to the rail’s inability to move to the inland points.. defending the jones act is terrible. Lol using “dedicated” in leu of “monopoly” is total BS. I’d love to talk about this topic.
Once again Professor I M., ya did your research before opening, with FACTS, on subject at hand!!! It really awful on digestion to listen to politically centered, biased gobbledygook coming from these 2 yes men, especially the "bearded one" w/ the sing song crap!! I'd have to be well paid, as I would presume these characters are, to spout such one-sided.B.S. Boy, sure had to edit myself after hearing those two. By way, the gal was difficult two, don't get me wrong! THANKS SAL, for another fine rundown on topic at hand, Mike from Delaware
The basic concept of the law is to protect labor unions in the US . The truth is the law inhibits innovation in the US maritime industry, discourages long term investment in the industry, all to protect wages and government tax revenue.
Thank you Sal you came through brother…. Perhaps it's not too late congress just passed the Chip-act $50 billion perhaps we can do a ship act for $50 billion…. localization is coming?!
And the problem is that the US doesn’t have an international merchant marine. It’s gone.
There are less than 100 US flagged civilian large ships.
The Jones Act has FAILED hard because it does nothing to ensure that ships calling in US ports adequately pay their crews.
This is exactly what I was hoping for! I made the call and Sal answered. Thanks!
Glad I could help!
SAME HERE
You hit on a subject near and dear to my heart... Korean companies using sub-contractors for labor or entire fabrication of a product. In the early '00's we did a world-wide bid for ASME Section VIII, CR-MO alloy pressure vessels for a project. A Korean company won the bid and was awarded the contract. That Korean company did NOT reveal to us that they would be using sub-contractors to fabricate these vessels. To keep a really, really long story short, once the vessels were received at the US sites, Positive Material Identification revealed that the welds were not CR-MO, but carbon steel, which made the vessels useless and the vessels had to be replaced. LOTS of $$$ and a big schedule delay. The reason? The Korean prime contractor did not monitor their subcontractor for quality. Buyer beware.
Who paid for the error?
@@williamgibb5557 We (the company) did, then turned it over to the lawyers. I never heard what the outcome was, after the new vessels were fabricated in Spain, and Installed, I was assigned to another project. I did have to give a deposition a year later, but that was the end of my involvement.
787 issues ring a bell?
Ugh the lack of investigation by journalists on this subject is extreamly frustrating. Thank you Dr. Mercogliano for your continued and informed discussion on the manner. It's ridiculous in that I'm seeing both Left and Ring wing media sources really showing their lack of professionalism and a strive for clicks instead of publishing truthful and authentic reports.
That frustrates me, too. None of them are researching anything.
@@erikjohnson3255 Exactly. This is the primary reason why i'm now longer watching mainstream news anymore including CNN, Fox, MSNBC, etc. It sucks to say, but they dictate the narrative. UA-cam surprisingly has become an important resource in getting and receiving quality and professional subject analysis and reporting.
Does John Stossel even qualify as a journalist?
None of them have ever published completely truthful reports, why start now?
@@jimmyrk3 not the way he talks-condescending and spiteful, and I just passed the 3-minute mark where Sal is only a few seconds into stossel's apparent rantcast.
17:01 Great Britain, France, the Netherlands, Germany, do not have the Jones Act. The US does. Worldwide, 40% of shipyards have closed. In the US, 65% has closed. THE JONES ACT DOESN'T WORK!
It makes remote life in remote communities harder and more expensive. Yes, for national security, you might want a shipbuilding, and shipping industry that is local. But it is unconscionable that national security needs for everybody in the country should be financed exclusively on the backs of small remote communities. It doesn't work, and it is unfair that poorer communities should pay for it.
Just subsidised it directly from national taxes.
Transportation to small remote communities is always more expensive, whether it is an island, in the mountains or across the plains.
What is your source for the 65%?
There is a need for maritime reform, no question. However repealing the Jones Act does not guarantee what you think.
On your opening point: Why did the governor petition Biden to waive the Jones Act if there was plenty of fuel and why did Biden eventually relent?
Because he would have been booted out of office for going against a Jones Act waiver. Check out my earlier videos on this.
Unfortunately, he bent over for the political narrative. At the end of the day he still is a politician.
@@wgowshipping Seen them. Where's the answer to the first part? Why was the governor petitioning Biden? Is this a dodge?
@@84ActionjackSal dodged your question quicker than Neo dodges bullets😂😂😂
@@84Actionjackthe answer was in the video
I enjoyed this video very much. So loaded with information. Thank you, Sal!
Having someone from the Cato Institute block you is a real feather in your cap.
I watched John Stossel's video and after looking up the Merchant Marine Act of 1920, I was led to your channel and learned about it. I subbed and will watch more of your content. Thank you!
As soon as I saw this I was looking forward to your reaction. I generally agree with John, but I wanted to hear your expertise
Thanks!
Thanks!
Rich...thank you so much. Your support is much appreciated!
We have to protect our national treasures, and you, Sal, are one of them! Great video, my friend 🤙
LOL! I saw that video on a news feed, and the first thing that went through my mind was: “You better call Sal.”
Was just about to send John a link to your Peter Zeihan commentary, since as much as I like John, he totally ignored any history of the act. Thanks for addressing this so fast.
Brilliant!
You are too kind and generous. Thank you for your support!
Once again you contribute so much to our information and knowledge base on this (and other) strategic, fundamental issues. If only stossel and other "journalists" would be so attentive to data and to being truthful. I'm honored to be a Patron of this superb channel!
Sal-thanks again for a great vid. Most people are ignorant and disinterested about anything beyond their immediate lives and are easily manipulated-I appreciate you voice of clarity-hopefully some will get it. I can't help but draw parallels to the US giving away so much of our economic activity through PPP , NAFTA etc.-result-aggressive China and many American's without the good jobs the help give self-esteem. Corporate interests win again.
Sal, you are magnificent! You should be on the national news!
Seriously! Better Call Sal should be a thing on TV, and battle cry!
Sal, you've been critical of the state of the Military Sealift Command, the American maritime fleet, and the (lack of) American shipbuilding capacity. IMO, persuasively. But that leads me to this question: does the Jones Act achieve its goals? To the extent the answer is no, what changes would you recommend?
What the Ship (Ep 64) | 5 Initiatives to Revise the U.S. Maritime Industry | Better Call Sal
ua-cam.com/video/vDC6AHI0biQ/v-deo.html
Love it when Sal's hair bursts into flames!
Seems to me that without the Jones act, shipping would be in the same life raft as our ports being without dedicated dredges.
Another awesome vid, I can't believe I'm now so interested in shipping. Sal, you will always be more Hank Schrader than Saul for me.
🤣
Not a Breaking Bad reference, but I was thinking Kevin O'Leary. The voice is similar.
Jon Stossel is being dishonest?! I am truly shocked...
An unnatural dramatic voice and narration for effect with dishonest word choice, is always suspicious to me, when guessing trust in speaker.
It’s all about “Clicks”! It’s the same reason Tesla is the brand mentioned if there is an accident. Any and all other brands are ignored. Also the other brands advertise and Tesla doesn’t. Love your channel.
Breath of fresh air, Sal, nice job!
Great vídeo, thanks to the US for rebuilding our industry after the war 🇪🇺🇺🇲
Where's a junkyard dog when you need one?... Let's call Sal!
Glad you addressed this. You should interview him and school him on the Jones Act.
25:30 "Why didn't you get a long-term contract to get a reliable supply of gas or whatever you needed to run your plants?"
That's a financial solution to a physical problem.
If they don't have enough ability to bring molecules of fuel into the region, the contract is obviously no solution.
Another impressive episode. Besides subsidies, or domestic tariffs/quotas, we could always add a law that if war occurs, whereby we were unprepared to respond with necessary industrial capacity, especially against a country we allowed to take over our manufacturing/skilled industry, that anyone who supported such policies will be fined/taxed to impoverishment, and their of-age family members will be automatically drafted to the front lines of said conflict.
Thanks Dr. Sal for your defense.
Wow, i appreciate your take on this. Really eye opening
Sal you fucking rule dude. This channel is awesome. Wishing you much continued success.
Puerto Rico has had power problems for a long time. I lived in Fajardo 20 years ago and the power would go out regularly, they would shut down the local pump station for a few hours every day to take some of the load off the grid. The hotels on the island have backup generators and water.
Sal, You need to make the podcast rounds and explain to folks just how diluted our maritime position is. Multiple other nations are building Naval, and shipping capacities with the express purpose of weakening our national security. Libertarian's should appreciate more then anybody how the jones act supports American security by creating a simple requirement that should create security; can you imagine the amount of bureaucracy that would be required to do this if the American market wasn't doing it. Keep up the good work and fighting for our national security
This goes along with the idea of being careful what you wish for; other countries will end up paying the bill for maritime security and they won't like it.
Talk about the Canadian Bayside railway. American seafoods way around the Jones act.
Or Cruiselines little Hawaiian detour to a non-American island. The Jones Act fails quite a lot.
Why doesn't John look at domestic trucking?Or trucking in Canadacrossing the border? The last Land Line Magazine figures i saw state 65% of over the road truckers are foreign born nationals, working 70 hours a week for no overtime and benefits for less then minimum wage so he can have free shippimg. Sal you are 100% right on this. Waving the Jones Act would open the flood gates to a business led takeover of the interstate shipping routes utilizing indentured servants from overseas.
I was once an OTR trucker and I don’t agree with that, first off I once actually did do cross border work into Canada as an American trucker, and 65% of OTR drivers are not foreigners.
You never really see American drivers go to Mexico because Mexico is not a society where American businesses can succeed at that level due to corruption and lower wages, but Canadian drivers come here and American drivers go there
Thanks for another great video 👍👍👍
Lol come on John, give Sal that super thanks!
Good evening Sal
Good morning!
Sal you make great points on the video. Keep up the good work!!
Up yours John and Scott
Many of the parts in "American cars" are foreign. More and more "American" brands are made in Mexico now. Much of the alleged innovation has been cost and quality cutting measures.
If it were not for his heavy editing and interjections, the lady Stossel is interviewing stomped him.
I love videos that point out misinformation.
I'm stunned by the lack of research on Stossel's part.
The first most efficient to carry liquids in the country is pipelines, the second is by ship, the third is by rail and the fourth by trucks. For some reasons the pipelines building is a big no no, the ships under Jones act are not some kind of NGO rescue ships, they just carry fuel whithin the US. Foreign ships might found it a lot more profitebal to brink fuel to devestated areas, charging the NGO for it. It still has nothing to do with the Jones Act.
Corporations will happily throw the country under a bus, all day, every day, to make a little extra profit. We see it all the time. Regulation is needed.
18:00 The fact that we subsidize interstate highway systems (and other land transportation) is the big detriment to US maritime
The libertarians have a good answer for that one: stop the subsidy
Ludwig von Mises talked about how interventionism creates problems, and the proper solution is to stop the intervention but governments use the problems to justify further interventions (a particularly nerdy but I think apt term is "iatrogenic escalation", iatrogenic from the medical context where the purported treatment causes the disease)
The "efficiency" they talk of is the ability to exploit workers and conduct unsafe operations. It's how much money owners can extract, not how much useful work gets done.
Marx would be proud. Take a bow oppressed worker
@user-pz8bl3uz2z where did say people do not have their hand out. thats exactly my point midwit. I see a lot of workers exploiting employers . dont worry you have no reason to argue. Your worldview has already won but the results will just be more of the same. more and more poverty as the marxist worldview works its magic.oh and corporations are government created entities. Thing is america is corrupt, immoral and marxist through and through and its not just the billionaires . its all the way from the top to the bottom. like i said you already won. so enjoy the victory
@user-pz8bl3uz2z america will not survive. Deadliest combination of 50 years of marxist propoganda and dumber than a bag of shit. Marxist propoganda works the best when a people have rejected God and no longer have morals. It works of the principle of greed and envy. this class act here who is thoroughly indoctrinated and probably sings the national anthem and thinks he believes in freedom. sad
Because de-regulating the airlines and the railroads has worked so well for the common man ... and making more wealth never costs lives or national security. I'm *so* glad tye US economy depends critically on TSMC and COSCO. I'm *so* glad someone else has a bugger boat.
The problem I have with this argument for the Jones act, is the USA doesn't not make merchant ships in America anymore, and haven't since 1950. So althoe the Jones act was created in 1920 to protect American workers, it actually hurts us, because we can't deliver merchandise in American ports by any ships is because we don't have American made ships to do it so anything else is forbidden due to the Jones act. So we can either start making American made ships and have them American owned, or use American flagged regardless of where they were made. Shipping in American rivers, lakes, Baltimore ect is 12 percent more efficient then trucks and very very efficient due to hydrodynamics.
Great report Sal!
Jennifer and her crew at AWO are great advocates for the Jones Act. I worked with them when ringing in Subchapter M for Towing vessels.
Keep in mind is that "national security" is not a thing in Stossel's worldview. His worldview is that every person should have the right to get whatever they want for the lowest price possible. This is good for humanity, but so long as any goverment on earth exists that interferes in markets it's merely a utopian dream.
love your knowledge and how you share it with laypersons like me …thank you
Good to know the nuance, thanks!
Wonderful explanation of the truth
26:00 Is he just now figuring out what lobbyists do?
No, Stossel has been pretty critical of lobbyists in many industries. I'm pretty sure he knows the deal
That ship off PR is a carpet bagger. The same type of person that charges $5000 for a generator the day after a hurricane when the day before it was $500.
This video reinforces my Disgust for Lobbyists.
Just saw the Stossel report, had to get here and see Sals comment.
Some time ago I was arguing with Collin Grabow and he insisted that the Jones act protects no American jobs and I told him “well it seems the Jones Act is actually pretty effective at protecting the jobs of Cato writers arguing for its repeal”
He stopped replying after then
Well Sal, since I follow shipping and am also a Campbell I am forced to support you. Okay, not really forced. All the best. I noted that Campbell University seems to have campuses at Fort LeJeune and Fort Brag. Interesting.
Happy to have you onboard!
I saw this video and immediately thought
BETTER CALL SAL!
The more I watch/listen through Dr. Capt. Mercogliano the Magnificent, the more i realize this guy is an oak. Strong, solid, reliable, and incredibly good at throwing shade.
Would you admit the Jones Act does make US shipping more expensive, but argue that we benefit in terms of reliability and security
Is that a fair summary?
It is impossible to argue that using nearly anything American does not make it more expensive. But the question is what do you get with those savings? I stated that we need to revise our maritime laws. I just don't think a repeal is the solution.
Well done
this IS Peter Zeihan's fault. Thereto:
"PETER ZEIHAN IS WRONG: HERE'S WHY"
28:00 Am I incorrect in remembering that the US government bailed out Chrysler because it was going bankrupt?
I remember something similar, but they should have been allowed to fail.
Capitalism progresses by letting companies who fail to meet consumer desires fail, and rewarding those who satisfy the consumer.
This vid is predictable. they are going on self interest. Stossel is going on economic principles. you are wasting your time commenting. %0 years of hardcore communist propaganda makes any use of logic and reason with people futile
@@eurobrowarriormonk7182 some of the most thoughtful defenders of liberty were previously statist in their thinking - Thomas Sowell for example
@@anonymousAJ yeah but the problem with americans is they are communized but under the illusion they believe in freedom. you can give it a shot though.
@Matt You make a compelling argument but I find myself ultimately unconvinced
Trouble with Americans is - they often call each other liars. More trouble is - that's often right..🙄🙄
Thanks Sal
SET THE RECORDS STRAIGHT, SAL.
People forget that stuff has to compete on the global market. If we repealed the Jones Act then all commercial ship building in the US would go overseas. i agree to your point that the US needs some commercial ship building to help move military supplies in a time of war. Also imagine the Staten Island Ferry being run by a Filipino company.
It happened to P+O ferries in the UK.
Thank you for your work, it's interesting how you got started, where would you be if the evergreen did not go aground and you started this channel. where would we be.
No idea Tom!
This is a real can of worms and you open it and spoon it out for us, Sal. This deeply geopolitical issue needs your analysis to help us voters make sense of it. It is painful to see America's dominance and generosity after WWII be returned as competition and hostility in international trade. The new generation in those Asian markets have no idea that their liberty exists because of American efforts to build a decent world after a totalitarian nightmare.
Another totalitarian nightmare coming up!
Thanks Sal. I like TimBatSea. I watch him often.
Last defense and information was the best
Campbell University is lucky to have you as a tenured professor. It makes you want to know more about your university
please all they want is to have the monopoly of shipping in PR so every thing 3 times more than the mainland
THANK YOU, I watched this video and it made my blood boil. The comment section was saying “this is why you should never trust the government 🤓” it makes me so upset.
I'm PRO Jones ACT 100%. It's the only shipping left in The USA. Everyone else are foreigners. Shoot look up who the parent companies of the semi trucks are that run in North America. With the exception of Kenworth and Peterbilt
They are all owned by another company overseas.
Crowley Maritime was the only company that complained when ThE Jones Act was temporarily lifted after hurricane Maria.
I remember the acronym GMC being turned into, Government Motors Corporation.
Based on my background in aviation, I’m trying to imagine someone arguing that because Lufthansa can fly between Germany and various international U.S. airports that they should then be allowed to fly domestic flights within the U.S.
Two things 1. I appreciate your insight into the history of shipping and the Jones Act. Information is important. 2. How many wrestlers will Campbell qualify for the NCAA Men's Wresting Tournament?
The whole F-wording problem is not the Jones Act. The whole problem is the over-taxation and over-regulation of our own shipping industry. Do you really think shipping companies would take the risk of building and registering in sh$t holes if they could keep it all right here for a reasonable premium and not a huge, irrational premium?
No!
That's fair. But it's called a flag of convenience for a reason. Those countries have looser labor laws (no minimum wage) and other very loose laws. It would be a bad look if the U.S had ships with their flag on it who employed sailors for 10 dollars a day. It's not like it would change anything. It would just be bad optics. And sal always likes to leave out the power of unions.
Rather, the whole Mother F-wording problem is the lack of financial accountability by the shippers. That indiviudals are allowed to hide behind limited liabilities and corporate personhood instead of being held personally accountable enables the irrational level of profit seeking that most people hate in big business. It's an accoutnability issue first and foremost; everything else is downstream.
I really do not see how taxation and unions are the boogeyman in this situation. My head is exploding.
Let's talk about how much of the GDP growth that has happen in say the last 50 years has been concentrated in a small part of the population. If the economy grows $10 in a year and $7 goes to Sal and you me and anti-union dude have to slip the other $3. This is what happen when income taxes were reduced. This is why you make shit money at a shit job. Because some financial anarchist ( read libritarian )told you at an impressionable age. Taxes are just dead weight loss to the economy.
No.
Your taxes are even when the go to Nicaragua to build houses are helping keep you safe ( preventing desperate people fleaing their homes and by extension migrating ( a classically destabilizing event throughout history ) ; if your taxes stay here and pay the lady at the DMV ; if the go to pay some of the wages for ship yard workers your tax dollars are strengthening The United States.
As Perun lays out in his presentation on the defense industrial base that lasts out this argument in a more conjent fashion. Some portion of this revenue is recovered in taxes (on workers and corporation operating in the US) and services sold to these individual workers. Representing a savings to the government when buying locally (with in US) that is present but hard to quantitate. Basically keeping that money circulating inside the US is a good thing.
If forgen ships are built operated and crewed by non-Americans we are giving money away to eather $7 Sal who can afford to gamble (ie. Invest) some of his money in the market and still live better than us on our aforementioned $3 remainder that we split or we are enriching some person or entity ( corporations are not people they can in no way be ' locked up ' when the break the law a fine is just the cost of parking to a sufficiently rich person and im pretty sure you and I are not going to live for 200 years or mergewith a SPAC to have shares sold on a stock exchange) that does not reside in the US and e would have little or no intrest in the people that live there. After the economic benefit of 'offshoreing' generates the gaines are focused on people who are already rich. I raged out on this subject...
The next thing that grindes my gears is when some company sits down with one of these think tanks and talks about the workforce. They will usually gently talk about how important they are and maybe how they partner with some school to get feeder system, because they usually gently stat American workers are just not ready to take on the jobs without a lot of training. This is telling me that key PEOPLE are the important part! Each individual worker is a valuabe resource. The problem to my mind is how can that value show up on a balance sheet. How can companies demonstrate that value to 'wallstreet'. So companies downsize and off shore to keep access the the funds they get through the privet markets and by effect of keeping that stock price high or 'stable' protect employees a vested intrest in that company. Or in retirement funds that hold their stock. But the a key factor of that value the workers in not represented.
My fear and anger is stoked because we can not even get to this part if the conversation the systematic undervaluation of worker's. Because misguided hate is directed towards Unions are Taxes.
The goverment doesn't need to tax high earners at a higher level to make money, they need to do it so that the gains of economic growth are incentivised to be shared across a broader pool of people. Like that fascist lover Henry Ford did when he paid his workers so they could afford buy a model T. It's no different now. Ask your self if saving some money on cheaper shipping or 'lower taxes' is really makeing up for the lost share of GDP growth...
P.S. Libritarinas are just financial anarchistists.
P.P.S. '$7 Sal ' is in no way related to the wonderful Sal who runs this channel. : p
Appologies for my gramer, spelling and tangents
Thanks, Sal! Why do I suspect John and Scott know exactly what you know?
If I’m not mistaken, many of China’s cargo ships are equipped for combat and carry weaponry.
Remember, anything federal they want to get rid of, but also hope the federal government Default and shut down like an old mall.
Since there was a disruption in the jones act continuium it was only a matter of time before you made a response
Good rebuttal !!
The big fact we have to deal with, is that U.S commercial shipbuilding is severely atrophied. Totally not enough for the needs of the country. and its unlikely we'll be able to get it running again to fulfill our needs. Why not buy foreign ships second hand, and have US crews and flags on them? otherwise will we just have to deal with a paltry sealift/commercial shipping for the foreseeable future?
I believe New York won’t permit a Pipeline is because of the water table being destroyed especially the northern part closer to the Canadian border.
Ive nva heard of the Jones Act
the 190 shipped docked offshore wasn’t the foreign carriers fault. It was the inability of the ports to work the ships and clear up the que.. the ports weren’t able to clear the backlog because their terminals were full, their terminals were full due in part to the rail’s inability to move to the inland points.. defending the jones act is terrible. Lol using “dedicated” in leu of “monopoly” is total BS. I’d love to talk about this topic.
The auto industry had to learn to deal with foreign competition. That's why American cars have improved greatly.
The older I got the more I realized Stossel was crazy biased at best.
@user-pz8bl3uz2z Who is Dr. D?
Once again Professor I M., ya did your research before opening, with FACTS, on subject at hand!!! It really awful on digestion to listen to politically centered, biased gobbledygook coming from these 2 yes men, especially the "bearded one" w/ the sing song crap!! I'd have to be well paid, as I would presume these characters are, to spout such one-sided.B.S. Boy, sure had to edit myself after hearing those two. By way, the gal was difficult two, don't get me wrong! THANKS SAL, for another fine rundown on topic at hand, Mike from Delaware
The basic concept of the law is to protect labor unions in the US . The truth is the law inhibits innovation in the US maritime industry, discourages long term investment in the industry, all to protect wages and government tax revenue.
Thank you Sal you came through brother…. Perhaps it's not too late congress just passed the Chip-act $50 billion perhaps we can do a ship act for $50 billion…. localization is coming?!
Instead of the Bat Signal, Sal should have the Jones Act Signal