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Latin Juke Remix by Molten Guava #Jungle #Footwork #DnB #drumandbass #breakbeat #Mambo #Latin #jazz ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ The Jones Act, officially known as the Merchant Marine Act of 1920, significantly impacts Puerto Rico’s economy by imposing restrictions on shipping and trade. Here’s a breakdown of how it works and its economic effects: Overview of the Jones Act The Jones Act requires that goods transported between U.S. ports must be carried on ships that are: 1. Built in the United States, 2. Owned by U.S. citizens, 3. Crew predominantly staffed by U.S. citizens or permanent residents, 4. Registered in the U.S. and flying the U.S. flag. This applies to Puerto Rico because it is a U.S. territory, so any goods shipped from the mainland to Puerto Rico or between other U.S. territories must comply with the Jones Act. How the Jones Act Hurts Puerto Rico Economically 1. Increased Shipping Costs: U.S.-built and operated ships are generally more expensive to build and operate than foreign vessels due to higher labor and material costs. This makes shipping goods to Puerto Rico costlier than importing goods directly from foreign countries using non-U.S. ships, which the Jones Act prohibits. 2. Limited Competition: The Jones Act restricts competition by disallowing foreign-flagged carriers, which might offer lower shipping rates. This results in artificially high prices for both shipping and goods. 3. Higher Consumer Prices: Since Puerto Rico imports the majority of its goods, the additional shipping costs are passed down to consumers. This includes everything from food and fuel to manufactured goods. 4. Economic Isolation: The Jones Act limits Puerto Rico’s ability to trade directly with nearby Caribbean nations and other international markets. Goods must first go through U.S. ports and then be transported on Jones Act-compliant vessels, increasing costs and delays. 5. Fuel and Energy Costs: Puerto Rico imports much of its fuel. The Jones Act forces it to rely on more expensive U.S. tankers for transportation, leading to higher energy costs for both households and businesses. Tariff Structure in Puerto Rico The U.S. Customs system treats Puerto Rico similarly to a state in terms of tariffs: • Goods imported into Puerto Rico from the mainland are not subject to tariffs since it is a domestic shipment. • Goods imported from foreign countries to Puerto Rico are subject to the same U.S. tariff schedule as any state. However, Puerto Rico must pay tariffs to the federal government without necessarily seeing proportional reinvestment of those funds back into the territory. • Goods shipped from Puerto Rico to the mainland U.S. are duty-free, but high shipping costs due to the Jones Act make Puerto Rican exports less competitive. Broader Implications • Critics argue the Jones Act effectively acts as an economic handicap for Puerto Rico, inflating costs and limiting growth. For instance, during natural disasters like Hurricane Maria, the Act’s restrictions delayed and increased the cost of delivering critical supplies. • Proponents of the Jones Act claim it supports U.S. shipbuilding and maritime jobs, though the benefits of these protections are felt primarily in shipbuilding states rather than Puerto Rico. Potential Reforms Reforming or repealing the Jones Act for Puerto Rico could reduce shipping costs, encourage direct trade with neighboring countries, and lower consumer prices. However, such changes face resistance from powerful lobbying groups representing the U.S. maritime industry. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ SoundCloud - https://soundcloud.com/molten-guava Instagram - https://www.instagram.com/molten_guava/ Business Inquiries - moltenguava@gmail.com