McCain and the Jones Act

[Turbineguy]

"As McCain points out June 25: "The Jones Act adds a real, direct cost to consumers – particularly consumers in Hawaii and Alaska. A 1988 GAO report found that the Jones Act was costing Alaskan families between $1,921 and $4,821 annually for increased prices paid on goods shipped from the mainland. In 1997, a Hawaii government official asserted that 'Hawaii residents pay an additional $1 billion per year in higher prices because of the Jones Act. This amounts to approximately $3,000 for every household in Hawaii.'"

http://www.franklincenterhq.org/1788/mccain-seeks-repeal-of-jones-act/

OK, to pay lazy unionized asshole Americans their exorbitant pay amounts to about 3% of shipping costs. So let's say that we can get foreigners for 1/3 that. In other words, a 2 percent savings. So let's see: if 2% equals $3000, how much is 100%? Answer: $150,000 per year. So a Hawaiian Family with an income of $66,000 per year spends $150,000 per year on shipping their shit from the main land.

May I suggest where this $3000 number comes from? This guy: http://www.youtube.com/watch?v=I-VEU5h-08o

Now for the Alaska numbers. Why the disparity? Simple. It depends on who's ass you pull the number from. At the risk of complimenting Rush Limbaugh, I'll say the $1921 number came from his ass and therefore the $4821 comes out of Glenn Beck's ass.

Whenever you can put 50,000 Americans out of work is a good day to Republicans. The GAO report cited is here http://archive.gao.gov/d17t6/137061.pdf and comes to some different conclusions overall.

[atreides1]

1. Where do you live?

And what's your point?

Here’s some examples of the best prices you will find in Hawaii at an ordinary grocery store.

gallon of milk: $4.00
loaf of bread: $5.00
apples: $3 a pound
blueberries: $6 for the tiny package
whole watermelon: 90 cents a pound
ground beef: $3.79 a pound
bag of macadamia nuts: $7.89
bananas: $1.29 a pound
lunch meat: 15 oz for $4.89
digiorno pizza: $8 ($6 on sale)
brand name cereal: $4-$6 (or $7.49 if it’s the big box of Kix)

And these are the best prices you can find.

How about paying $8 for a jar of JIF peanut butter, or $5.50 for a loaf of white bread, $6.50 for a gallon of milk, or $7.00 for half gallon of orange juice. This is the main reason that several of my relatives left Hawaii and have moved to the mainland US.

If repeal of the Jones Act will provide some relief for the people of both Hawaii and Alaska, then I would support it. And don't worry about the union workers in Hawaii, because they've been able to take care of themselves for several decades weathering all kinds of changes.

[Turbineguy]

2. The point is you would be saving

2% of the shipping costs. That's not off the total cost. A 35 ton container costs $1500 to ship. That's 2 cents per pound. Dumping the Jones act would reduce a pound of bananas by $0.0004. You would save 1 penny for every 2500 lbs of bananas you buy.

There are many reasons people pay more in Hawaii and Alaska. The Jones Act is not a significant one.