What is driving the cost of living in Hawaii
Lack of Competition in Shipping raises cost of living in Hawaii
Maritime laws in Hawaii prevent foreign ships from competing in the marketplace by limiting restrictions. These restrictions in-turn monopolize shipping hence raise prices to import and well as export. Since Hawaii imports most everything the effect on cost of living is far reaching. In particular the Jones Act and the Commerce Clause hindered the above stated. 95% of the available worldwide Merchant shipping fleets can not serve Hawaii.
Agriculture in Hawaii is suffering due to the expense of agricultural production. Specifically inbound shipping cost of fertilizers, herbicides and outbound shipping costs of fruits and livestock.
The amount of preservative chemicals it takes to keep food fresh while in route inflate prices. One of the reasons why food is more expensive in Hawaii is by virtue of the time it takes to get to the store. Supply issues are also affecting prices. This is all do to lack of competition in the shipping department.
Food prices in Hawaii are adversely affected by the Jones Act and the cost for local businesses to ship goods are so expensive it is ruining local economies. Hawaii is completely Mad Cow disease free and has a huge competitive advantage world wide. But shipping costs prevent Hawaii from being able to compete price wise.
What is the Jones act
The Merchant Marine Act of 1920 Section 27,states all goods transported between U.S. ports will be carried in American ships, made in America, owned and crewed by U.S. citizens. The law was invented to support the U.S. maritime industry.
What is The Commerce Clause
The Commerce Clause states that the United States Congress shall have power “To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes. Dispute exists within the courts as to the range of powers granted to Congress by the Commerce Clause
Advocating the Jones Act
Advocators of the Jones Act state that it is necessary to enforce the United State’s environmental and labor laws as well as protect national security.
Opponents of the Jones Act
Opponents argue that the Jones Act is costing Hawaiian households an estimated $3000 per year. And that abolishing the law will open up competition, lower shipping costs and unsure that consumers are getting the best products at the best prices while giving the local economy a much needed boost.