3 Reasons to KILL the Export-Import Bank Forever
Nick Gillespie |
The bank, colloquially known as Ex-Im, is notorious for inefficiency, ineffectiveness, and sloppy accounting.
It's coming up for reauthorization later this year and for the first time in a long time, opponents have a real shot at ending this excresence of crony capitalism.
Here are three reasons to kill the Export-Import Bank forever.
In 2012 alone, Ex-Im authorized $36 billion in loans, guarantees, and insurance. The bank can carry a portfolio of up to $150 billion, meaning that taxpayers could be on the hook that much money.
2. It doesn't boost U.S. exports.
According to the Mercatus Center's Veronique de Rugy, Ex-Im's favored firms account for around 2 percent of the total dollar value of American exports and 2 percent of the jobs associated with exports.
3. It's crony capitalism at its most obvious.
Although Ex-Im's defenders like to claim the bank levels the international playing field for small U.S. companies, virtually all of the agency's resources go to supporting giant, politically connected firms such as Boeing, General Electric, Caterpillar, and John Deere. The American taxpayer shouldn't be subsidizing their market share at home or abroad.
Hopefully, this is one New Deal--era policy that will finally disappear for good.
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Written by Nick Gillespie and video produced by Todd Krainin (Reason TV).
Tags: Export-Import bank. Ex-Im, 3 reason. to kill Ex-Im Bank, expensive, doesn't boost American exports, crony capitalism, Nick Gillespie, Reason TV To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. and "Like" Facebook Page - Thanks!
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