Tag Archives: Ex-Im

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Trump should rein in the Export-Import Bank

Throughout his campaign, Donald Trump promised to revolutionize trade policy for the benefit of American workers and industry. He should begin by stopping the Export-Import Bank from purveying corporate welfare.

Ex-Im is a federal agency established to help American exporters by providing taxpayer-backed financing to governments and businesses in developing foreign markets without access to the necessary means to buy American products. In its youth, Ex-Im did just that and bolstered exports in the interwar period to Cuba, Haiti and Burma. Over the last 50 years, though, it has ventured far from its original purpose and has become a vehicle for ruinous market distortion.

According to the Mercatus Center, some of the largest beneficiaries of Ex-Im financing are companies like Boeing, Bechtel Power, General Electric and Caterpillar — all multinational conglomerates that could conceivably get financing directly from private lenders.

Continue reading at Washington Examiner.

Money

Politicians Who Support Ex-Im Should Embrace Corporate Tax Reform

On Tuesday, the House of Representatives voted—with the support of nearly all Democrats and a slim majority of Republicans—to reauthorize the Export-Import Bank, or “Ex-Im” for short. The credit-granting agency has been closed since June, when its charter expired. Bipartisanship is unusual these days, yet Washington can agree on supporting a program that leaves ordinary Americans as the losers. The Ex-Im Bank is corporate welfare at its finest.

The Ex-Im Bank provides subsidies to foreign customers of American companies such as Boeing and Caterpillar. Supporters of the Bank argue that it is beneficial to our trade balance, but over 98 percent of American exports do not depend on Ex-Im, and the 2 percent that do would likely be able to find financing elsewhere. As the research of the Mercatus Center’s Veronique de Rugy has shown, the Bank “fails to promote exports, create jobs, or support small businesses.”

Read the rest on Economics 21 here.