The Wage Subsidy Index in the Merchant Marine Act of 1970

The Wage Subsidy Index in the Merchant Marine Act of 1970

Subsidies for US merchant fleets were formerly on a cost-plus basis, giving no incentive to economise on labour costs. The 1970 Act restricts the subsidy by reference to an index of wages paid in other industries. This has many advantages, but Dr. Franco thinks it may be disadvantageous to seamen.

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