Episode #474: The Jones Act - Interview with Colin Grabow

On this episode Ron and Ed welcomed Colin Grabow of the CATO Institute's Herbert A. Stiefel Center for Trade Policy Studies to talk about the Jones Act (aka Merchant Marine Act of 1920) which regulates maritime commerce in U.S. waters and between U.S. ports, oh, and, makes stuff more expensive for all of us while benefitting a select few. You will learn the main reason why food and other sundry items are more expensive in Hawaii and Puerto Rico; why the Northeast US imports natural gas from Russia instead of getting it from the US; and many more insanities.

[Snarky Editor’s Note] Some day, this episode will be obsolete because Congress will take action and repeal the Jones Act. You can check if Congress has taken action by visiting HasCongressRepealedTheJonesAct.com

Use these show notes to follow along with the audio:

Segment one

• What is the Jones Act? Term used to refer to section 27 of the Merchant Marine Act of 1920. It has four major components and you can read them here: https://en.wikipedia.org/wiki/Merchant_Marine_Act_of_1920 

• Here is a slightly older podcast from Cato that Colin did that discusses the case against the Jones Act: https://www.cato.org/multimedia/cato-daily-podcast/case-against-jones-act 

• One of the more outrageous examples of the Jones Act: two hundred and fifty kegs of nails were loaded onto a foreign ship in New York that went to Belgium, and then the nails were placed on another foreign ship and taken to Los Angeles

• Another outrageous example of the Jones Act: a 200-foot long railway in Canada that ships Alaskan seafood to the East Coast. More here: https://www.cato.org/blog/east-coast-seafood-supply-chain-faces-uncertainty-amidst-heavy-fines-alleged-jones-act 

• The Jones Act causes a LACK of oil and petroleum shipping from the Gulf Coast to the East Coast. Instead, most is imported to the East Coast. Why? Details at this link: https://www.cato.org/blog/new-study-estimates-jones-act-costs-east-coast-energy-consumers 

• The Jones Act ENCOURAGES Puerto Rico’s use of Russian energy. This is well documented by Colin and his colleague, Alfredo Carrillo Obregon. More here: https://www.cato.org/blog/jones-acts-role-encouraging-puerto-ricos-use-russian-energy 

Segment two

• “It was like watching Physicists debate flat earthers.” —Ron Baker when talking about Colin’s recent appearance on Maritime TV in which he debated supporters of the Jones Act. https://www.cato.org/multimedia/media-highlights-tv/colin-grabow-discusses-jones-act-maritime-tv 

• Colin revealed today that there are easily 10-12 lobbyist groups whose top (or top 3) priority is maintaining the Jones Act. That is the start of the answer to, “Why has the Jones Act not been repealed or significantly changed?”

• “In 1984 Alaskans overwhelmingly passed a ballot measure mandating the state’s governor attempt to persuade Congress to repeal the Jones Act” — yet, all 3 Congressional reps support it today https://www.cato.org/commentary/alaska-lawmakers-must-get-serious-about-jones-act-repeal 

• If you look into the statistics and pull back the emotion, “We are a manufacturing superpower. I don’t know any other way to say it.” —Colin Grabow; More here: https://www.cato.org/publications/reality-american-deindustrialization 

Segment three

• “I’m gonna go to China, and I’m gonna get these jobs from China and bring ‘em back to America. For what, so iPhones can be $9,000? Leave that job in China where it belongs … I wanna wear Nikes, I don’t wanna make those things. Stop trying to give us Chinese jobs.” —Dave Chappelle

• Here’s probably the MOST absurd outcome due to the Jones Act: Cattle fly first class to Hawaii. Folks, I couldn’t make that up if I tried and Colin wrote a piece on it: https://www.cato.org/blog/jones-act-fleet-high-costs-limited-capabilities 

• The Jones Act was waived for 10 days after Hurricane Maria hit Puerto Rico. That’s the most positive development we can provide in an attempt to #EndTheJonesAct https://www.nytimes.com/2017/09/28/us/jones-act-waived.html 

• So if the Jones Act is so ridiculous then why is it not being challenged? “Concentrated benefits and diffused costs.” —Colin Grabow

Segment four

• “The premium placed by policymakers on manufacturing employment is misplaced. Unlike most of the post–World War II era, jobs in this sector now provide lower compensation than similar roles elsewhere in the economy […]” https://www.cato.org/publications/reality-american-deindustrialization 

• On episode #187, Ron and Ed interview Donald Boudreaux and asked him if we should we do away from trade statistics? “Absolutely”, was Don’s answer https://www.thesoulofenterprise.com/187 

• Here is a seminal piece from Coin Grabow called “The Jones Act: A Burden America Can No Longer Bear” https://www.cato.org/publications/policy-analysis/jones-act-burden-america-can-no-longer-bear 

• A big THANK YOU to Colin Grabow for joining us today. Here is a link to his work at Cato including how the Jones Act undermines National Security https://www.cato.org/people/colin-grabow 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #473: I Have a Right! Do you?

What does it mean to say "I have a right" to something? In this thought-provoking episode, Ron and Ed delve into the distinct realms of negative and positive rights, exploring how they shape our understanding of individual liberties and societal obligations. Join us as we unravel the philosophical, practical, and even business implications of these two concepts, challenging preconceptions and fostering a deeper appreciation for the complexities of rights discourse.

Use these show notes to follow along with the audio:

Segment one

• Trevor Burrus @TCBurrus wrote an article for FEE called, “Is Health Care a Human Right?” which is the starting point for our conversation today. https://fee.org/articles/is-health-care-a-human-right/ 

• “Someone on a desert island can claim the right to life but the tiger doesn’t have to listen.” —Ed Kless

• Ron is reminded of Peter Block’s work — Confronting Our Freedom https://www.amazon.com/Confronting-Our-Freedom-Accountability-Belonging/dp/139415609X 

• Negative rights vs positive rights: Negative rights include inaction on the part of someone else. Positive rights require an action (ie. duty) on the part of someone else

• “The nature of the corollary duty is what distinguishes positive rights from negative ones.” —Trevor Burrus from this article https://fee.org/articles/is-health-care-a-human-right/ 

• 1/4 All from Trevor’s article, there are 4 qualities that make negative rights and positive rights categorically different: 1) “Negative Rights are Absolute; Positive Rights Are Not” https://fee.org/articles/is-health-care-a-human-right/ 

• 2/4 “Negative Rights are Scalable; Positive Rights Are Not” https://fee.org/articles/is-health-care-a-human-right/ 

• 3/4 “Negative Rights Can Easily Exist Together; Positive Rights Cannot” https://fee.org/articles/is-health-care-a-human-right/ 

• 4/4 “Negative Duties are Universally Shared; Positive Duties are Not” https://fee.org/articles/is-health-care-a-human-right/ 

Segment two

• An example of positive rights from Trevor’s article: “In 2009, under Massachusetts’s ‘universal’ health care system, 31,000 legal immigrants had their state-subsidized health insurance scaled back in order to counter budget shortfalls.” https://fee.org/articles/is-health-care-a-human-right/ 

• What does compossibility mean? Don’t worry, I had to look that one up too. Compossibility is a philosophical concept that refers to the ability or possibility of coexisting.

• At some point you will find yourself on the other side of government policy. This is one of Ed’s arguments against Executive Orders.

• Ron mentioned Ayn Rand’s book, Capitalism, The Unknown Ideal. Here is a link: https://aynrand.org/novels/capitalism-the-unknown-ideal/ 

Segment three

• Positive rights do exist in the mind of the Libertarian but only after you have a contract. Once you have a contract then there are positive rights that can be expected.

• Here’s a fun thought experiment around rights: Does an accountant have a right to not perform his/her duties for a business or person that they think might be a cheat?

• The Second Bill of Rights or Bill of Economic Rights was proposed by United States President Franklin D. Roosevelt during his State of the Union Address on Tuesday, January 11, 1944 https://en.wikipedia.org/wiki/Second_Bill_of_Rights 

• The second bill of rights included topics such as an Adequate income for food, shelter, and recreation, Farmers' rights to a fair income, Freedom from unfair competition and monopolies, Decent housing, and Adequate medical care

Segment four

• “Liberty is the absence of coercion and freedom is a choice.” —Peter Block

• The right to a trial by jury in the Constitution is a positive right. There are a few, but not many, other positive rights in the Constitution. Most are negative rights.

• This is a heavy show so we are going to wrap it up on a light note with a discussion on this article. “Why the Ethics of ‘Would You Kill Baby Hitler?’ Are More Important Than You Probably Think” https://fee.org/articles/why-the-ethics-of-would-you-kill-baby-hitler-are-more-important-than-you-probably-think/ 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #472: Best Books of 2023

In the second of our annual beginning of the year episodes, Ron and Ed recap their best books of 2023. Many listeners consider this the "most expensive" episode of the year as their anti-libraries tend to grow while listening. All books discussed are listed below in the show notes.

Use these show notes to follow along with the audio:

Segment one

• Before we get started on books, here’s a quote from Charlie Munger: “In my whole life, I have known no wise people (over a broad subject matter area) who didn't read all the time — none, zero.”

• Ed’s number 5 book is Social Justice Fallacies by Thomas Sowell - https://amzn.to/48wZDnN - From the book, “Stupid people can cause problems but it requires a genius to cause a catastrophe.” 

• Ron’s number 5 book is While Time Remains: A North Korean Defector's Search for Freedom in America https://amzn.to/48ybL7W 

• From Ron’s number 5 book, “There is a reason why the great books of Western civilization are all banned in dictatorships.”

Segment two

• Ed’s number 4 book is Goldratt’s Rules of Flow by Efrat Goldratt—Ashlag -  https://amzn.to/3TTDrzJ. “This book is going to have a long term impact on my thinking.” —Ed Kless

• Ron’s number 4 book is Capitalist Punishment: How Wall Street Is Using Your Money to Create a Country You Didn't Vote For by Vivek Ramaswamy https://amzn.to/3O2rQut 

• Ed’s number 3 book is Redaction by Titus Katharine and Reginald Dwayne Betts - https://amzn.to/3vrvxDm. It’s an art/poetry book and Reginald Betts has appeared several times on EconTalk

• Ron’s number 3 book is The Creative Act: A Way of Being by Rick Rubin https://amzn.to/3vA5VV7. Rick Rubin is a music producer (editor’s note: …and the reason the Beastie Boys exist)

Segment three

• Ed’s number 2 book AND Ron’s number 1 book is 2. Life After Capitalism by George Gilder: The Meaning of Wealth, the Future of the Economy, and the Time Theory of Money - https://amzn.to/48wwxVp 

• Speaking of Rick Rubin, check out this interview with Tyler Cowen https://conversationswithtyler.com/episodes/rick-rubin/ 

• We had George Gilder on the show specifically to talk about Life After Capitalism (show 442). Check it out at this link https://www.thesoulofenterprise.com/442 

• Honorable mention: Simple Complexity by William Donaldson https://www.amazon.com/Simple_Complexity-Management-Guide-Systems-Thinking/dp/1683500741 (a guest on show number 457 https://www.thesoulofenterprise.com/457)

Segment four

• Honorable book mention: Saving Grace by David D. Alfery MD https://www.amazon.com/Saving-Grace-Patients-Doctors-Balance/dp/1666737941 (show number 426 as a guest https://www.thesoulofenterprise.com/426)

• Honorable book mention: Tornado of Life by Jay Baruch https://www.amazon.com/Tornado-Life-Doctors-Constraints-Creativity/dp/0262046970 (show number 424 as a guest https://www.thesoulofenterprise.com/424) 

• Honorable book mention: Muppets in Moscow by Natasha Lance Rogoff https://www.amazon.com/Muppets-Moscow-Unexpected-Making-Sesame/dp/1538161281 (show number 428 as a guest https://www.thesoulofenterprise.com/428) 

• Honorable book mention: The Little Prince by Antoine de Saint-Exupéry https://en.wikipedia.org/wiki/The_Little_Prince 

• And FINALLY, Ed’s number 1 book is Confronting Our Freedom by Peter Block - https://amzn.to/3TWHtXU “Anxiety is the price you pay for freedom. This is not a great value proposition.” —Peter Block

• When Peter Block was a guest on the show he said, “The nice thing is that you are at risk no matter what you do. The wish for safety is an illusion and so why not choose an illusion that better suits you.” https://www.thesoulofenterprise.com/445 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #471: 2023 — The Year in Review

During this annual favorite Ron and Ed look back on the good, the bad, and the ugly of 2023 including their favorite episodes, news events, pop-culture, business trends, and in memorium.

Use these show notes to follow along with the audio:

Segment one

• As we look back on 2023, we recognize James Johnston, the great British Historian. We lost him on January 12th at the age of 94. https://en.wikipedia.org/wiki/James_Howard-Johnston 

• We also lost Gina Lollobrigida on January 12th, an Italian actress, artist, and politician. She made Marilyn Monroe look like Shirley Temple. https://en.wikipedia.org/wiki/Gina_Lollobrigida 

• Who made Ed’s list of notable losses in 2023? David Crosby - from Crosby, Stills, Nash, and Young - some amazing harmony! Also Cindy Williams from Laverne and Shirley. And Burt Bacharach. 

• And let’s not forget Tony Bennett. Some of his great work was towards the end of his career on a series of albums called Duets. Ed loves the one with Lady Gaga. https://en.wikipedia.org/wiki/Cheek_to_Cheek_(album) 

• We also lost Robert Lucas who famously compared the US economy to an amusement park. Here’s a free article from FT that goes into the details: https://www.ft.com/content/b52a4aac-2e1f-46ce-a8ea-0441e1cfb9a5 

Segment two

• Also in 2023, we lost James Buckley - older brother to William. He was a distinguished US senator, Federal Judge, and Cabinet Member. He is 1 of only 45 people to serve in all 3 branches of the US government. 

• Joe the Plumber passed away in 2023. He famously challenged President Obama on taxes on 2008. https://www.theguardian.com/us-news/2023/aug/28/joe-plumber-dead-obama-campaign 

• We also lost Elinor Otto (October 28, 1919 – November 12, 2023), an American factory worker who was an original "Rosie the Riveter". She built airplanes for over a half-century, and spent many years working for Boeing

• We also lost Shane McGowan in 2023 - lead singer of The Pogues. Here are a few of their greatest songs https://www.youtube.com/watch?v=j9jbdgZidu8 

• Others mentioned on the show today that we lost in 2023: Matthew Perry, Juanita Castro, Rosalynn Carter, Charlie Munger, and running back Jim Brown

Segment three

• According to Chartable, our top shows of 2023 are 5) episode 446 4) episode 442 3) episode 445 2) episode 448 1) episode 444. Just visit TheSoulOfEnterprise.com slash episode number to visit any episode directly.

• According to our website stats, our top shows are 2023 are: 5) episode 459 4) episode 434 3) episode 435 2) episode 450 1) episode 452. Just visit TheSoulOfEnterprise.com slash episode number to visit any episode directly.

• Ron loves the Tony Gill episode, ESPECIALLY the poem at the end of the episode. Folks, you’ve got to hear this. https://www.thesoulofenterprise.com/417 

• Ron was really touched by the interview with Dr. David Alfrey. Here is the direct link: https://www.thesoulofenterprise.com/426 

• The Essentials of Strategy was a phenomenal episode. Ron mentioned this as one of his favorites in 2023: https://www.thesoulofenterprise.com/427 

• According to YouTube, our most popular episodes of all time are interviews. They are 5) Matthew Stewart 4) Thomas Sowell 3) Tyler Cowen 2) Donald Hoffman 1) Rory Sutherland https://www.youtube.com/@askTSOE 

Segment four

• And the winner is….BOTH the Oxford word of the year and American slang word of the year is….. RIZZ (don’t ask me. Go ask a teenager)

• How about another 2023 American slang word: Stan… “I guess you can say I’m a Stan. I stan Taylor Swift (sustained fan or longtime fan)”

• Cap is another 2023 American slang word. “You had dinner with Beyonce??? That’s cap.” (Lie or deceive)

• Another slang word for 2023: Rotting… “Stay in bed. Play on social media. You are rotting for the day.” 

• Ed has some 2024 predications to close out the show: Biden will not be the Democratic nominee. AI will continue to be incredibly hyped…and useful. Bitcoin will pass 100k

• Ron has a few 2024 predictions as well: Jimmy Lai faces a perilous future and China might make a move on Taiwan

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits.