Monday, June 21, 2010

Barrier Reef

Face to face, each classic case
We shadow box and double cross
Yet need the chase
--Sade

The Merchant Marine Act of 1920 (a.k.a. the Jones Act) stipulates that all goods transported by water between US ports be carried on US ships built in the US by US firms and crewed by US citizens. This is obviously a protectionist measure that caters to a number of special interest groups (SIGs).

It is easy to see how this act and affiliated SIGs have slowed response to the Gulf oil spill problem. A number of specially fitted foreign vessels, hailing from norther Europe and elsewhere, are available to assist in cleanup. Thus far, these ships have largely been 'locked out' of the Gulf by the Jones Act.

I don't have a good idea of how much foreign cleanup capacity is out there; the mainstream media has certainly not be very 'investigative' in this regard. However, a 'no brainer' a month ago or more would have been to waive the Jones Act to get as much clean up capacity to work ASAP. Yet here we are today, with the protectionist measure still in the way.

A fundamental axiom is that government will generally be slow to anticipate and respond to crisis situations. One reason for this is the mesmerizing effect of SIGs on bureaucrats.

no positions

2 comments:

dgeorge12358 said...

Regarding SIG's, 6 out of 7 commission members assigned to review the oil spill have associations w/environmental groups according to MS analysts

fordmw said...

Haven't seen resumes 1st hand, but my understanding is that none have oil industry experience.

Of course, objective of this commission may not be technical accuracy.