Letters: Ex-Im Bank picks winners and losers in the economy, invites cronyism and corruption, and distorts the free market.
In 2008, a prominent politician referred to the United States Export – Import Bank as “little more than a fund for corporate welfare.” Then Presidential Candidate, Barak Obama, summarized the best reason to de-fund and eliminate the Export – Import Bank, also called Ex-Im. If this institution had been named, ”The Federal Corporation Subsidy Bank” there would be little resistance to its demise.
The Chamber of Commerce and Congressman Patrick McHenry included would have you believe the Ex-Im Bank is good for our economy and small business. Don’t believe the media hype!
Want ten top reasons to shut down this failed 1934 FDR Progressive leftover for good? As succinctly put by The Heritage Foundation:
1. Boeing, GE, and Caterpillar received 87% of Ex-Im loan guarantees in FY13.
2. Ex-Im provides export financing for just 0.009 percent of America’s small businesses.
3. The vast majority of exporters—98 percent—do not receive assistance from the Ex-Im Bank.
4. Export financing doesn’t create new jobs. It merely redistributes jobs across America’s economy.
5. Among the top 10 buyers of Ex-Im exports, 5 are state-controlled and rake in millions of dollars from their own governments in addition to Ex-Im Bank subsidies.
6. There are 31 open corruption and fraud investigations into the bank.
7. The top beneficiaries of Ex-Im also have massive backlogs of orders, meaning jobs would not be lost when the bank expires.
8. Ex-Im subsidies benefit China, Venezuela, Cuba, and Russia. State-owned foreign airlines have received $16 billion in subsidized financing since 2009.
9. Taxpayers are on the hook for nearly $140 billion in the Ex-Im loan portfolio.
10. The companies advocating for the reauthorization of Ex-Im admit they do NOT actually need it.
The Washington Examiner reported, Ex-Im loaned First Solar $455 million to sell solar panels to itself. In 2009, Ex-Im Chairman Fred Hochberg laid out his agency’s policy objectives: “We want to help American manufacturers produce green technology for the world.” In 2014, he boasted that their renewable energy support “has increased nearly tenfold from $30.4 million in FY 2008 to $257 million in FY 2013.” Ex-Im is unafraid to publicly advocate for the administration’s environmental initiatives, which it has called a “top priority.”
Taxpayers have a real opportunity to send a message to K Street – Business As Usual Is Over! Let Ex-Im expire. Tell Congressmen Patrick McHenry and Mark Meadows – NO on reauthorizing the Ex-Im Bank!