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> USA has no shipyards and infrastructure is crumbling precisely because of misallocation of resources and labor

That's because of the Jones Act and other poorly designed protectionism.

How is the Jones Act responsible for the failure of domestic ship building? Seems like the Jones Act didn't go far enough if we really cared about a strong domestic ship building industry.

If it went even further the demand for ships would be even lower. You want to copy what South Korea did, which is basically the opposite approach.

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