Quotulatiousness

July 22, 2013

When is an “arrest” not really an arrest?

Filed under: Law, Liberty, USA — Tags: , , , — Nicholas @ 00:01

Answer: when you try to sue them for false arrest:

The Portland police and City Attorney are making an argument in federal court this month that gives another glimpse into the increasing claims of authority of police in our society. Scott Miller was stopped for jaywalking by Officer Dean Halley in 2010 and admitted that he committed the common violation of pedestrians. The officer however proceeded to handcuff him, tell him “you’re under arrest,” throw him into the back of a cruiser and then drove him a block away. He was in custody for about 30 minutes, but Deputy City Attorney William Manlove is arguing that citizens cannot sue because such acts do not constitute an actual arrest. They are something between a chat and custody, but not an arrest for purposes of legal action.

So, according to Portland, this constitutes just being detained and is effectively beyond any challenge of a citizen. In other words, police can routinely handcuff citizens, lock them in court and even tell them that they are under arrest without being subject to accountability for wrongful arrests.

Deputy City Attorney William Manlove insists that when Miller briefly jaywalked one morning while trying to catch a bus, he could be detained and handcuffed but not treated as an arrested person despite the express statement of the officer. It is an argument that would allow officers virtually unchecked authority in handcuffing citizens and holding them. It is the perfect authoritarian loophole and the city Portland wants to help establish it for future cases.

When Officer Friendly roughs you up, searches your car, and detains you for an indeterminate period of time, in no way does that imply that your rights have been infringed, citizen. Move along … nothing to see here.

July 21, 2013

Sad tale of whiskey theft

Filed under: Law, USA — Tags: , , — Nicholas @ 13:46

It puzzles me why the alleged thief didn’t just sell the stuff and buy (far cheaper) modern booze with the proceeds.

The owner of an historic inn in Pittsburgh has brought charges against a former tenant she says was supposed safeguard 50 bottles of vintage whiskey valued at more than $100,000 but drank it all instead.

The owner of the South Broadway Manor Bed and Breakfast, Patricia Hill, found 104 bottles of Old Farm Pure Rye Whiskey when she bought the historic mansion and converted it into a bed and breakfast. It had originally belonged to Pittsburgh businessman J.P. Brennan.

The whiskey had been distilled in 1912 and given to Brennan in 1918, she told ABC News affiliate WTAE.

“There were four cases, 52 bottles, manufactured by an old distillery here in the Township that went out of business many years ago,” Barry Pritts, chief of police in Scottdale, Pa., said today.

He said the bottles had been made and sold before Prohibition and then passed down.

H/T to Doug Mataconis for the link.

Real competition? In our mobile phone market? It’s less likely than you think

Filed under: Business, Cancon, Government, Technology — Tags: , , , — Nicholas @ 09:31

Canada’s mobile telephone market is a rigged oligopoly of three major companies and a few minor players. One of the big three, Telus, has opened a new campaign against the federal government’s tentative gestures towards allowing a more competitive mobile phone market for Canadians. Michael Geist has the details:

Yesterday, Telus CEO Darren Entwistle was campaigning at the Globe and Mail and National Post, warning of a “bloodbath” if the government sticks with its commitment to allow for a set-aside of spectrum for new entrants such as Verizon. Telus is concerned that a set-aside would allow Verizon to purchase two of the four available blocks, leaving the big three to fight it out over the remaining two blocks. Telus emphasized its prior investments in arguing for a “level playing field” in the auction.

Yet to borrow Telus’ phrase — “scratch the surface of their arguments and get to the facts” — and it becomes clear the fight is not about level playing fields since new entrants have been at a huge disadvantage for years in Canada. Indeed, even with a spectrum set-aside, there would not be a level playing field as companies such as Telus would have big advantages that include restrictions on foreign ownership for broadcast distribution (thereby blocking Verizon from offering similar bundled services), millions of subscribers locked into long term contracts, far more spectrum than Verizon would own, and its shared network with Bell that has saved both companies millions of dollars.

While the companies frame their arguments around level playing fields, the real goal is simply to keep competition out of the country. For Verizon (or any major new entrants), a spectrum set-aside will be crucial since it is the only way to obtain sufficient spectrum (when combined with the existing spectrum from Wind Mobile and Mobilicity) to establish a viable fourth wireless network that could compete directly with the big three incumbents. If Telus gets their way, the removal of the set-aside would kill the government’s stated goal of a viable fourth carrier since there would be little reason for Verizon to enter the country only to face many of the same disadvantages that has hamstrung the smaller new entrants.

[…]

Make no mistake: the Telus lobbying campaign will be joined by Bell and Rogers as the three companies spend millions of dollars in advertising and lobbying to keep the Canadian market free from much needed competition (the Wire Report reports that ten board members each from Telus and BCE have registered to lobby the government on spectrum). The government has insisted that it will do whatever is necessary to ensure greater competition and consumer choice in the wireless sector. The potential Verizon entry into Canada — undoubtedly conditioned on a spectrum set-aside — is precisely what is needed. In this case, sticking with its policy by siding with consumers and greater competition has the dual advantage of being both good policy and good politics.

Reason.tv – Detroit’s Tragedy and How to Fix It

Filed under: Economics, Government, USA — Tags: , , , — Nicholas @ 09:12

The key things about Detroit’s bankruptcy are that it didn’t happen overnight – and it didn’t have to happen at all.

Detroit’s long, sad slide started in 1950, when the Motor City’s population peaked at nearly 2 million people. Now it’s around 700,000.

The hollowing out of the city was on gut-wrenching display in two recent exhibits at the National Building Museum, featuring photographs by Camilo Jose Vergara and Andrew Moore.

In fat times and lean, the city’s pols and power-brokers chose to focus their energy, and the residents’ tax dollars on gigantic, big-ticket development scams while ignoring the basics that let cities thrive — or at least survive.

Detroit’s leaders poured money into a never-ending assembly line of sad-sack projects such as the Renaissance Center, the Fox Theater, Comerica Park, Poletown, the People Mover, and Ford Field.

But unlike Pompei and other cities crushed by Nature’s wrath or God’s wrath, Detroit’s destruction is completely man-made and thus can be reversed. The city that midwifed the Model T and the Cadillac, Bob Seger and Eminem, Ted Nugent and the Insane Clown Posse, still has tremendous assets in terms of infrastructure, location, and people.

Like Buffalo, Cleveland, St. Louis, and other dead cities scattered across the map of the industrial Midwest like so many cigarette burns, Detroit can stage its own comeback by reducing crime and picking up garbage; by freeing kids, parents, and property values from an abysmal school system; and getting the government out of everything that isn’t essential.

In other words, Detroit’s leaders only need to do what they should have been doing for the past 50 years. And the city’s dwindling supply of residents needs to keep them honest this time.

Because Detroit is finally out of next times.

Produced by Jim Epstein. Written and narrated by Nick Gillespie. Additional camera by Meredith Bragg.

Lessons in “Rockonomics”

Filed under: Economics, Media — Tags: , — Nicholas @ 00:01

Tim Harford has a few interesting economic examples to look at from the world of music:

Lesson two is about globalisation. A new article in The Economic Journal from Fernando Ferreira and Joel Waldfogel asks whether in a world of MTV and YouTube, national musical cultures are being crushed by American imports. Ferreira and Waldfogel have assembled more than a million data points covering chart hits in 22 countries, in some cases going back to 1960. In practice this covers pretty much the entire global music market, and the data are used to estimate the value of music sales.

At first glance, worries about the cultural dominance of the US seem justified: US artists are responsible for 60 per cent of world music sales. But US artists were responsible for 80 per cent of world music sales in the early 1960s before dramatically losing market share to the British. (We are now, alas, in sharp decline.)

In the early 1980s, less than 50 per cent of music sales were by domestic artists — that is, French artists selling in France, or Brazilian artists selling in Brazil. By 2007 that figure was around two-thirds. Domestically produced music is having a renaissance — proof that globalisation has more complex effects than we tend to assume.

July 20, 2013

UK government inches closer to giving posthumous pardon to Alan Turing

Filed under: Britain, History, Law, WW2 — Tags: , , — Nicholas @ 09:50

In the Guardian, Nicholas Watt updates the news on a private member’s bill that would give Alan Turing a pardon:

Alan Turing, the Enigma codebreaker who took his own life after being convicted of gross indecency under anti-homosexuality legislation, is to be given a posthumous pardon.

The government signalled on Friday that it is prepared to support a backbench bill that would pardon Turing, who died from cyanide poisoning at the age of 41 in 1954 after he was subjected to “chemical castration”.

Lord Ahmad of Wimbledon, a government whip, told peers that the government would table the third reading of the Alan Turing (statutory pardon) bill at the end of October if no amendments are made. “If nobody tables an amendment to this bill, its supporters can be assured that it will have speedy passage to the House of Commons,” Ahmad said.

The announcement marks a change of heart by the government, which declined last year to grant pardons to the 49,000 gay men, now dead, who were convicted under the 1885 Criminal Law Amendment Act. They include Oscar Wilde.

Update: On the other hand, Matt Ridley thinks that there’s a major problem with this approach.

That Turing deserved an apology in his lifetime for this appalling treatment is not in doubt. What will be debated tomorrow is whether a posthumous pardon from today’s Government is right, or may be a further insult to his memory. After all, the word pardon implies that his crime is still a crime, which it is not, and it will do nothing for the victim (especially since he was an atheist), and do nothing to untarnish his reputation, which history has already fully untarnished. Also it could be unfair to other, less famous convicted gay men and may even seem to rewrite history rather than leaving it starkly to reproach us. By rights, Turing should be pardoning the Government, but that’s not possible.

So it is not easy to judge if a pardon is the right thing. For my part, I think a greater matter is at issue — whether we have done enough to recognise Turing’s scientific reputation and how we put that right. It becomes clearer by the day that, irrespective of his tragic end and even of his secret war service, he ranks for the momentous nature of his achievements with the likes of Francis Crick and Albert Einstein in the 20th-century scientific pantheon. This was not just a moderately good scientist made famous by persecution; this was the author of a really big idea.

[…]

When the war broke out, Turing’s genius proved as practical as it had been ethereal in the 1930s. His crucial contributions to three successive computing innovations at Bletchley Park — the “bombe” machines for replicating the settings of the German Enigma encryption machine, the later cracking of the naval Enigma machine enabling U-boat traffic to be read, and finally the Colossus computer that broke the Germans’ “tunny” cipher machine — provided Churchill with the famous “ultra” decrypts that almost certainly shortened the war and saved millions of lives in battlefields, ships and camps.

For this he was appointed OBE, but secrecy shrouded his work until long after his death, so he wasn’t known to be a hero, let alone the man who saved so many lives. He moved to what would become GCHQ, but in the paranoid days after Burgess and Maclean fled east, his homosexuality conviction categorised him as a security risk.

The Angry Nerd comes down on Comic Con weapon checks

Filed under: Humour, Media — Tags: , , — Nicholas @ 09:27

“A man walks down the street in that hat, people know he’s not afraid of anything” – except copyright lawyers

Filed under: Law, Media — Tags: , , , , — Nicholas @ 08:41

At TechHive, Leah Yamshon talks about the fuzzy edge of law in the fan community:

Undying devotion to your favorite TV show can lead to much worse than a sedentary life parked on the couch. For Stephanie Lucas, it threw her right in the middle of an intellectual-property lawsuit: In March she was hit with a cease-and-desist order from 20th Century Fox Television.

Her actionable offense? She was selling a knitted hat inspired by a Fox TV show on Etsy.

Lucas is a member of the Firefly fan community, a group dedicated to Joss Whedon’s short-lived “space western” series that originally aired on Fox. “I’m absolutely in love with this show and its characters,” Lucas says. And thus her shop features one special item dedicated to her fellow Browncoats (a nickname for the Independence fighters in Firefly, and now for the fans themselves).

[…]

The Etsy market is full of unofficial, handmade hats.

The Etsy market is full of unofficial, handmade hats.

Fans who had been knitting these hats for years were now screwed, thanks to Fox’s claim that they broke the law after the official version debuted. But which law?

“Merchandising rights is a monster that has grown without any proper legal backing,” says Madhavi Sunder, a professor of law currently at University of California, Berkeley, with a specialty in intellectual property and culture. “Under traditional copyright law, the exclusive right to make these goods is not there,” she says. The U.S. Supreme Court has made no rulings in regard to merchandising rights, so intellectual-property violations have to be considered on a case-by-case basis.

Intellectual property is protected under both trademark and copyright, but the two concepts are different: Trademark protects names, terms, and symbols used to identify an original work or brand, and copyright protects the creative work itself. According to U.S. copyright law, the only groups with the right to distribute works based on an original creation are copyright holders. So, technically, only the original story creators are allowed to make pieces featuring images and concepts for which they hold the copyright.

Investigators still don’t know what caused the explosion in Lac-Mégantic derailment

Filed under: Cancon, Environment, Railways — Tags: , — Nicholas @ 00:02

In the Globe and Mail, Jacquie McNish and Grant Robertson report on the ongoing investigations into the causes of the fatal explosion:

Federal officials probing the Lac-Mégantic disaster are testing the chemical composition of crude oil carried by the runaway train as they seek to answer the crucial question of what triggered the unusual and devastating explosion after the derailment.

[…]

Edward Burkhardt, chairman of Montreal, Maine & Atlantic Railway Inc., which operated the derailed train, said Canadian authorities have impounded the rail cars to take “a huge number of samples of oil.” He said the investigators and officials in the rail and oil industries “are asking how come there were explosions here. Crude does not blow up.”

People familiar with the investigation said the TSB is examining the composition of the oil that fuelled the explosion.

Industry sources said there are several possibilities. One is whether the crude, which came from the Bakken oil region of North Dakota, contained volatile chemicals. A possible scenario is that additives were intentionally combined with the crude oil to speed up the transfer of the syrupy oil, common for pipelines but rare in the rail industry. Another possibility is that the tanker cars had chemical contaminants from a previous shipment. Another question is whether the oil contained high levels of flammable hydrogen sulphide gas, which is sometimes present in Bakken oil.

[…]

Regulators in the United States say rail carriers are responsible for knowing what they are carrying, and that the shipper and the railway company are required to work out such details when the train is being loaded.

“The carriers have to know exactly what it is that they’re hauling at all times,” said Warren Flateau, a spokesman for the Federal Railway Association in Washington.

Mr. Burkhardt said MM&A received a detailed bill of lading from the U.S. oil services company, which he declined to identify, and no chemicals were identified as being present in the crude. The intermediary oil services company leased the rail cars, loaded them with oil and then contracted three separate railway companies to transport them.

The first carrier was Canadian Pacific Railway, which handed over the train to MM&A in Montreal. From there, MM&A was to deliver the oil cars to a small rail company in New Brunswick owned by the Irving family.

Orwell’s rules of writing

Filed under: Media — Tags: , , — Nicholas @ 00:01

George Orwell wasn’t a perfect writer, but most of us could stand to be able to write more like he did. Here, from his 1946 essay “Politics and the English Language”, are the rules he recommended to produce clear, understandable writing:

To begin with it has nothing to do with archaism, with the salvaging of obsolete words and turns of speech, or with the setting up of a ‘standard English’ which must never be departed from. On the contrary, it is especially concerned with the scrapping of every word or idiom which has outworn its usefulness. It has nothing to do with correct grammar and syntax, which are of no importance so long as one makes one’s meaning clear, or with the avoidance of Americanisms, or with having what is called a ‘good prose style’. On the other hand, it is not concerned with fake simplicity and the attempt to make written English colloquial. Nor does it even imply in every case preferring the Saxon word to the Latin one, though it does imply using the fewest and shortest words that will cover one’s meaning. What is above all needed is to let the meaning choose the word, and not the other way around. In prose, the worst thing one can do with words is surrender to them. When you think of a concrete object, you think wordlessly, and then, if you want to describe the thing you have been visualising you probably hunt about until you find the exact words that seem to fit it. When you think of something abstract you are more inclined to use words from the start, and unless you make a conscious effort to prevent it, the existing dialect will come rushing in and do the job for you, at the expense of blurring or even changing your meaning. Probably it is better to put off using words as long as possible and get one’s meaning as clear as one can through pictures and sensations. Afterward one can choose — not simply accept — the phrases that will best cover the meaning, and then switch round and decide what impressions one’s words are likely to make on another person. This last effort of the mind cuts out all stale or mixed images, all prefabricated phrases, needless repetitions, and humbug and vagueness generally. But one can often be in doubt about the effect of a word or a phrase, and one needs rules that one can rely on when instinct fails. I think the following rules will cover most cases:

  1. Never use a metaphor, simile, or other figure of speech which you are used to seeing in print.
  2. Never use a long word where a short one will do.
  3. If it is possible to cut a word out, always cut it out.
  4. Never use the passive where you can use the active.
  5. Never use a foreign phrase, a scientific word, or a jargon word if you can think of an everyday English equivalent.
  6. Break any of these rules sooner than say anything outright barbarous.

These rules sound elementary, and so they are, but they demand a deep change of attitude in anyone who has grown used to writing in the style now fashionable. One could keep all of them and still write bad English, but one could not write the kind of stuff that I quoted in those five specimens at the beginning of this article.

However, as Tom Chivers points out, even Orwell could be wrong:

One: never use a figure of speech which “you are used to seeing in print” is a bit weird. For example, you could make the case that “figure of speech” is a figure of speech, since the things it refers to are not literal figures, ie physical shapes or written symbols, but metaphorical ones. And you’ve definitely seen it in print lots and lots. And there’s nothing wrong with it. “Don’t resort to cliché” is what he means, but it’s so obvious it doesn’t need saying.

Two: Language Log nails the “Never us a long word” and the “Never use a foreign phrase” one neatly by pointing out that “when a shorter one will do” or “an everyday English equivalent” are entirely subjective terms. In the very same essay, they point out, Orwell talks of “scrupulous writers”. Could he have said “careful”, Language Log wonders: “Not quite the same meaning, of course. But would it have done?” Similarly, foreign and technical words have subtly different meanings to the English equivalents: there are no true synonyms. “Don’t show off by using needlessly fancy language”, again, is so obvious and unhelpful that it doesn’t need saying; it’s little better than saying “write well”.

Three: “If it is possible to cut a word out, always cut it out” should, by its own rule, be “If it is possible to cut a word, cut it.” Or even “Cut words where possible.” Is that better?

Four: “Never use the passive” is complete nonsense and Orwell uses it regularly himself because there is nothing wrong with it.

Five we’ve dealt with; see two.

Six: So what you’re saying, Mr Orwell, is that applying rigid rules to writing is unhelpful and silly? At last we agree.

All Orwell needs to say is that we should take care over writing, and that cliché and needlessly showy language are worth avoiding. That’s great, if largely empty (“Be better at the things you do” is rarely helpful advice). But the Six Commandments on their tablets of stone are all ridiculous, and if you go through your prose sternly applying them – or worse, if your editor does – then it is very unlikely to make it any better.

July 19, 2013

This week in Guild Wars 2

Filed under: Gaming — Tags: , — Nicholas @ 11:18

My weekly Guild Wars 2 community round-up at GuildMag is now online. This week’s edition is packed full of information and opinion on what is coming to GW2 during the rest of 2013, based on ArenaNet’s Colin Johanson’s livestream, interview, and long, detailed blog post. There’s also the usual assortment of blog posts, videos, podcasts, and fan fiction from around the GW2 community.

The election campaign is in full swing in Lion’s Arch, and GuildMag also has up-to-the-minute reporting from the front lines.

Users of Opera web browser unhappy with latest release

Filed under: Technology — Tags: , — Nicholas @ 10:28

I use several web browsers every day, including Firefox, Chrome, and even Internet Explorer. I also use Opera for some tasks, and I was less than happy to find out that the most recent release of the browser is a major step back in functionality. I’m clearly not the only disappointed Opera fan:

Bitter reality scheduled to return on September 22nd

Filed under: Economics, Europe, Germany, Government — Tags: , , , , , — Nicholas @ 08:46

Here’s an unpleasant idea to disturb your narrative of economic recovery:

You may have noticed the small blurb recently that the ECB had eased the rules for asset backed securitizations. You may have read this snippet and thinking nothing of it you moved on. This would have been a mistake because just here you would have noticed the cracks of a crumbling empire.

The French banks, the Spanish banks, the Portuguese banks are all engaged in an ongoing charade so they do not need to ask the EU for help. They all are taking their Real Estate loans, the properties that they have confiscated, the commercial loans that are no longer paying and they have put them into massive securitizations that are pledged at the ECB as they are given cash for the collateral. The collateral, as you may suppose, has all of the value of cents on the Dollar but they are given money at par while the ECB carries them on their books at par. It is a fraudulent scheme jam packed with money created out of nothing but it is judged to be a better plan that to have to admit to accurate financials and have the banks of Europe default all across the Continent.

[. . .]

There will be nothing but lying until September 22, 2013 which is the date of the German elections. This is the drop dead date that I have been asked about for so long. Then, as soon as the celebration is over that Ms. Merkel is to remain in power, the world will turn on its axis. The status quo will disappear and there will be a “shock and horror” campaign as the Southern nations of Europe demand more help and Germany squirms and then refuses to provide it because it does not have the assets to do so.

Spain, France, Portugal, Greece, Cyprus, and even Italy are all going to line up at the trough only to discover that the promise of water was just that, a promise, and does not exist. A Biblical drought will be upon the Continent and from the political battles will emerge new alliances and new screams calling the traitors by name. The twin towers upon which the markets rest, money from nothing and fairy tale financials, will decompose in the light of this new sun and our old friend, Fear, will return to haunt us.

Sleep well.

Blaming the bankers and absolving the politicians

Filed under: Economics, Government — Tags: , , — Nicholas @ 08:23

Daniel Ben-Ami points out that current campaigns to vilify bankers (“banksters”) over their role in the economic crisis that began in 2007-2008 conveniently ignores the politicians’ dirty hands:

There is at least one area where mainstream politicians can legitimately claim considerable success: they have offloaded much of the blame for the economic crisis from themselves and on to banks and other financial institutions.

Much of the public has accepted the premise that greedy bankers were largely responsible for the economic turmoil that emerged in 2007-8. There is little discussion of the government’s role in creating the conditions for the financial crash, let alone any examination of the economy’s underlying weaknesses.

Criticism of the government’s economic policy is usually confined to it being heartless or ill thought out. Often the two are combined, in the accusation that the government is obeying the diktat of its banker friends by imposing cuts. Campaigners also often allege that a shady global financial network is the real power in the world. In this conspiratorial worldview, a labyrinth of offshore tax havens helps the rootless rich evade the power of national authorities.

[. . .]

But in truth, politicians on both sides of the Atlantic bear a large share of the blame for the crisis. To understand their culpability, it is necessary to go back at least to the early 1980s rather than just to 2007. For decades it was clear that investment and innovation were insufficient. Yet rather than tackle these underlying problems, the authorities pursued policies that ended up creating a credit bubble.

Public spending was kept high and interest rates artificially low. Often, governments also used additional measures to ease the supply of credit, such as reforming the financial markets. The hope was that such moves would keep the market ticking over in the short term and the economy would somehow correct itself in the longer term.

This was the backdrop to the financial crisis that emerged in 2007-8. Bankers certainly played a role, but governments created the conditions for the credit bubble to emerge. Underlying this development was the failure of politicians to tackle or even recognise structural economic weaknesses.

[. . .]

Underlying anti-banking campaigns is the common assumption that financial institutions are part of a giant global conspiracy to undermine nation states.

This view was most vividly put forward by Matt Taibbi, a campaigning American journalist, in a 2009 article in Rolling Stone magazine and in a subsequent book. He famously condemned Goldman Sachs, a top Wall Street investment bank, as ‘a giant vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money’. In the UK, the New Economics Foundation, a think tank, adopted the image with a short video entitled Taming the Vampire Squid: Take Back Our Banks.

There are several reasons to object to such imagery and the conspiratorial worldview that underlies it. For one thing it is strongly reminiscent of Nazi imagery of Jews as central to an international financial conspiracy. For example, in Mein Kampf, Adolf Hitler talked of Jews as being ‘like leeches… they were slowly sucking the blood from the pores of the national body’.

Protectionist law from 1920 strangling economies of Hawaii and Puerto Rico

Filed under: Economics, Politics, USA — Tags: , , , , — Nicholas @ 00:01

Keli’i Akina wants the US government to amend or (better) repeal the 1920 Jones Act:

What’s the best way to destroy the economy of an island or largely coastal region? From the Peloponnesian War to the 1960s confrontation between Cuba and the United States, the answer has been to impose an embargo. In effect, that’s what the United States has been doing for decades to its non-contiguous regions such as Hawaii and Puerto Rico as well as Alaska and much of the East and West Coasts. The culprit in this economically self-defeating practice is a little-understood federal statute called the Jones Act. The 1920 maritime cabotage law specifies that ships carrying cargo between two American ports must: 1) be built in the United States, 2) be 75% owned by U.S. citizens, 3) be largely manned by a United States citizen crew, and 4) fly the United States’ flag.

In 2012, the Federal Reserve Board of New York issued a warning to the federal government that, unless Puerto Rico is granted an exemption from these Jones Act rules, its economy would likely tank. Following suit, the World Bank released a statement announcing that it will cut back its financing of projects in Puerto Rico and begin encouraging investors to look to Jamaica as a new international shipping hub. Puerto Rico’s legislature, governor, and resident commissioner in Congress have voiced loud objections. They join a growing chorus of outrage which includes Alaska, whose legislature has passed a law (Sec. 44.19.035) requiring the governor lobby Congress for reprieve from the Jones Act.

The Jones Act creates an artificial scarcity of ships due to the inefficiency and the extraordinary cost of U.S. ship construction, driving up cargo costs and limiting domestic commerce. Through World War II the United States was a leading producer of merchant ships. Today we build less than one percent of the world’s deep draft tonnage, and the ships produced domestically for the commercial market come at a hefty price.

« Newer PostsOlder Posts »

Powered by WordPress