The Merchant Marine Act of 1920, a key piece of legislation often encountered in the study of American history, particularly within an Advanced Placement United States History context, stipulates that goods shipped between U.S. ports must be transported on vessels that are U.S.-built, U.S.-owned, and U.S.-crewed. This protectionist measure primarily impacts maritime commerce within the nation.
Its historical significance stems from its aim to bolster the American shipping industry following World War I. The act was intended to ensure a strong domestic merchant marine for both economic prosperity and national security. While proponents argue it safeguards American jobs and ensures a reliable fleet, critics contend that it increases shipping costs, making American goods less competitive and disproportionately affecting states like Hawaii and Puerto Rico, which rely heavily on maritime transport.
