|
|
Article: Promoting the U.S. flag merchant marine. (negative effects of the decision to allow three giant tankers from the international fleet to enter domestic commerce)
- Article from:
- Business Economics
- Article date:
- April 1, 1991
- Author:
CopyrightCOPYRIGHT 1991 The National Association for Business Economists. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
*Gerald A. Pollack is Associate Professor of Finance at Pace University, New York, NY.
1 See footnotes at end of text.
For national security reasons, the United States has long had a policy of promoting the country's merchant marine. In general, U. S. flag ships in international commerce may be subsidized, but only unsubsidized U. S. flag ships may serve the domestic market. In the middle 1980s, however, the Administration admitted into domestic commerce three giant tankers from the international fleet. The results were lower freight rates and the displacement of a number of smaller but more modern tankers. The initial benefits accrued mainly to the ...