Should the US Government Bail Out and Subsidize the American Maritime Industry?

1697 Words Jan 15th, 2018 7 Pages
If not, why not? If so to what extent? There is little argument among national policymakers that the American economy was severely horsewhipped by the Great Recession of 2008, and that the country has only recently recovered sufficiently for economists to breathe a sigh of relief that the corner has been turned. Likewise, there is virtually no argument among national policymakers that a healthy maritime industry is also an essential component of the American economy. Finally, there is significant historic precedent. The U.S. government has "bailed out" other industries and sectors in the past that were viewed as being "too large to fail" because of the potential adverse impact on the American economy. For instance, in his editorial, "Rebuilding America and Creating Jobs - A Jones Act Initiative," Munoz (2011) writes, "After bailing out the auto industry with $25 billion in loans and guarantees, the government turned around and provided another $25 billion for the industry to retool its plants to compete on world markets. The experiment succeeded, and American cars and trucks are now among the best in the world" (2). Moreover, it is national policy to support the maritime industry. According to Section 1, "Purpose and policy of United States," 46 App. U.S.C. 861, 2002: "It is necessary for the national defense and for the proper growth of its foreign and domestic commerce that the…