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Trump's War With Iran Pushed Him To Waive a Century-Old Shipping Law. Commerce Boomed.

A large boat with shipping containers seen from above | Tawatchai Prakobkit/Dreamstime/Cato Institute

America's interminable war with Iran has killed thousands, disrupted commerce that flows through the Strait of Hormuz, and raised prices on the home front.

But there may be one silver lining. In an attempt to lower gas prices that spiked because of the war, the Trump administration has repeatedly issued waivers of the Jones Act, a century-old law that requires all goods moved between American ports to be carried on American-built, American-crewed ships.

With the law (temporarily) not being enforced, commerce has exploded.

Just look at how much propane has been shipped from the mainland United States to Puerto Rico, says Colin Grabow, a trade policy analyst at the Cato Institute and perhaps the nation's foremost advocate for abolishing the Jones Act.

A map showing U.S. fuel shipping routes
Cato Institute / Joanna Andreasson

Since March, when the first waiver was issued, Puerto Rico has imported more than 800,000 barrels of propane from the mainland. That's more than twice the amount of American propane shipped to Puerto Rico in the last 22 years combined.

America is one of the world's leading producers and exporters of propane, but the lack of Jones Act–compliant ships capable of carrying gas means that it has been nearly impossible to ship propane from the mainland to outlying parts of the country. In the past, Puerto Rico has imported gas from Nigeria, Chile, and elsewhere because those deliveries don't have to comply with the Jones Act.

For years, libertarians have argued that the Jones Act unfairly impoverishes American consumers and businesses that want to buy and sell things within the same country in order to artificially inflate the price of moving those things across water. Waiving the law seems to have proven that point: There are plenty of ships capable of moving gas and oil around the country as long as the government gets out of the way.

"The instant the Jones Act no longer applied to energy shipments, mainland propane displaced foreign imports, suggesting it had been the cheapest option all along," says Grabow.

Puerto Rico is hardly the only winner.

The Jones Act waivers are offering a glimpse into a world where the law doesn't exist. From March through mid-August, there had been 210 voyages completed that otherwise would have been deemed unlawful without the waivers, according to an analysis of Maritime Administration data by the Institute for Energy Research.

It's a world where American oil and natural gas can be more easily shipped from the Gulf Coast to New England, which had previously been importing energy from Russia and Europe. Another big winner is California, which had been importing gasoline from as far away as the Bahamas because it was nearly impossible to legally ship gas from Texas or Alaska to the West Coast.

President Donald Trump reupped the Jones Act waiver in mid-May. Another extension, issued in August, will last for 90 days but applies only to ships carrying energy products such as gas and oil. Before that waiver expires in November, lawmakers ought to kill the Jones Act permanently.

There is some irony in the fact that one of Trump's most successful policy maneuvers has paused a protectionist law that limited commerce, when so much else of his economic policy has been focused on erecting barriers to trade. It's also amusing that it was a war in the Middle East—something Trump pledged to avoid—that triggered this change.

Still, the proof is in the shipping. The free traders were right all along.

The post Trump's War With Iran Pushed Him To Waive a Century-Old Shipping Law. Commerce Boomed. appeared first on Reason Magazine.

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DOGE Worked? Only If You Grade on a Curve.

Elon Musk and Donald Trump with a DOGE meme coin | Official White House Photo by Daniel Torok/Newscom/Jiri Hera/Dreamstime.

As the Trump administration's short-lived Department of Government Efficiency (DOGE) project implemented its plan to downsize the federal workforce, there was much wailing from the liberal institutions in Washington, D.C.

Federal employee unions filed lawsuits to block the effort. NPR ran profiles of federal workers who, for the first time, faced the prospect of potentially not having absolute job security forever. The Brookings Institution wondered how many jobs the federal government could shed before it crashes.

The answer: plenty. The Trump administration has cut more than 10 percent of the federal workforce, and the government hasn't crashed. Indeed, it hasn't even shrunk—if you're counting by dollars spent instead of people employed.

In a new article for City Journal, Manhattan Institute senior fellow Judge Glock highlights the tremendous gap between the dire predictions about DOGE's cuts and the reality that has emerged, more than a year after DOGE was shut down. Despite having only a modest impact on spending, Glock writes, DOGE "had a massive impact on the federal civil service."

This is true—to a point, more on that in a moment—and notable. Aside from a modest downsizing in the 1990s, the number of people employed by the federal government has been steadily growing for decades. Reversing that trend is one of the few genuinely libertarian accomplishments by the Trump administration.

The cuts to the federal workforce prove that "DOGE worked," argues Glock.

Well, hold on.

Elon Musk and Vivek Ramaswamy (who departed the DOGE project before Trump's inauguration and is now running for governor of Ohio) set some very ambitious goals after being appointed DOGE co-chairs in late 2024. In an op-ed for The Wall Street Journal in November 2024 where they promised "we won't just write reports or cut ribbons. We'll cut costs."

Musk repeatedly attached some rather absurd numbers to that promise. He said DOGE would cut $1 trillion or even $2 trillion in federal spending. In the end, it didn't come close. By DOGE's own (questionable) accounting, it cut $170 billion. Meanwhile, overall federal spending has increased in each of Trump's first two years in office, and the budget deficit has widened as well.

Yes, Musk and Ramaswamy also said they would reduce the federal workforce. But that was presented as a natural consequence of cutting spending, not as the primary goal.

Think about it like this. If I spent months promising my friends and family that I would lose 50 pounds on a new diet, and then didn't lose any weight, would it be fair to say the diet worked?

What if I reduced the number of donuts I eat every day, but still didn't lose any weight? Sure, that might be good for my health in some way—just like reducing unnecessary workers in the federal government is good for America's fiscal health—but it certainly wouldn't mean I had achieved the goal of losing weight.

Finally, even the claim that DOGE cut the federal workforce requires an asterisk. As Glock also notes in his report, the decline in federal workers has been offset by an increase in federal contractors.

It's not a one-for-one trade, of course. The new contractors are overwhelmingly concentrated in places like the Department of Homeland Security and the Pentagon, while the cuts mostly targeted other areas, like the Department of Health and Human Services.

"Most of that increase came from the buildup in homeland-security and defense contracting, including purchases such as surveillance aircraft and tanks, rather than substitutes for government workers," Glock writes. "DOGE achieved real contract savings, but these were more than offset by higher spending elsewhere, reflecting a shift in priorities rather than an overall reduction in contracting."

So, the government is eating fewer donuts but more pizza.

There might be libertarian reasons to prefer contractors over government employees. They are less likely to hold those jobs for life, for one. But there's nothing inherently good about a government policy that cuts jobs in some areas just to create more room in the budget for poorly trained immigration enforcement agents and defense contractors. That may even be a negative outcome for liberty.

In the end, the DOGE project looks less like a meaningful attempt at cutting government spending or employment levels and more like a way to purge parts of the federal workforce likely to get in Trump's way during his second term. "As long as [Trump's] larger commitment is to extending his power rather than rolling back power itself, you shouldn't expect the government to stop growing," as Reason's Jesse Walker wrote last year in comparing DOGE to President Richard Nixon's attempted purge of the civil service.

Did DOGE work? Only if you grade it on a pretty dramatic curve.

Yes, it proved that a president can slash bureaucratic jobs—particularly the bloated managerial and administrative types—without doing much damage to the government's core responsibilities. That's a lesson future administrations should remember.

Maybe, someday, a president will try applying the same logic to government spending too.

The post DOGE Worked? Only If You Grade on a Curve. appeared first on Reason Magazine.

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