Export Import Bank

Export-Import Bank Reauthorization (continued)

Economic Distortion. By subsidizing corporations that compete against U.S. companies, Ex-Im disadvantages elements of the domestic private sector. For instance, Ex-Im has enabled foreign carriers to purchase Boeing aircrafts at what amounts to a discount, allowing them to have lower fixed budget costs than their U.S. counterparts. Delta Air Lines sued Ex-Im, citing that the Bank helped foreign carriers such as Air India acquire aircrafts on favorable loan terms that Delta cannot find on the commercial market, making it harder for Delta to remain competitive.

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Export Import Bank

Export-Import Bank Reauthorization

“I’m not a Democrat who believes that we can or should defend every government program, just because it’s there. There are some that don’t work like we had hoped… [like] the Export-Import Bank that has become little more than a fund for corporate welfare… If we hope to meet the challenges of our time, we have to make difficult choices. As President…I will eliminate the programs that do not work and are not needed.”

-    Barack Obama, Campaign Trail, 2008

Background. In 1934, Franklin D. Roosevelt created the Export-Import (Ex-Im) Bank to “facilitate exports and imports and the exchange of commodities between the United States and other Nations…”. This aid now takes the form of loans and loan guarantees, as well as working capital and credit insurance, to both U.S. exporters and foreign purchasers of American goods and services (including foreign governments). In essence, the Bank attempts to stimulate job creation and counter the subsidies provided by foreign governments to competitors overseas. This interference in and manipulation of the market invites economic distortion, cronyism and corruption.

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Call Your Representative to See Where He or She Stands on Export-Import Bank

The charter for the Export-Import Bank will expire at the end of September, and a bipartisan coalition is already advocating for reauthorization. If not reauthorized, the Bank will be unable to offer new financing, effectively grinding it to a halt and preventing it from distributing subsidies to new constituencies.

Congress had the opportunity to end what has been called a “publicly subsidized piggy bank for large corporations” less than two years ago. Instead, Congress passed legislation to reauthorize and increase Ex-Im’s lending authority by 40 percent, from $100 billion to $140 billion, despite surprising opposition in the House and Senate.

As this fight heats up, it is important to know where your Representative stands on the issue. Calling your congressional office and asking whether or not he or she will oppose the reauthorization of the Export-Import Bank and reporting back what they say creates a feedback loop that will help conservatives win. Take action now by making the call.

Call Your Representative

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Export Import Bank

Yes, the Export-Import Bank Perpetuates Cronyism

As conservatives, we are opposed to the Export-Import Bank of the United States, an 80-year-old institution that allegedly exists to “facilitate exports and imports and the exchange of commodities between the United States and other Nations.”   That description sounds benign, or perhaps even beneficial, until the Bank’s practices, such as using taxpayer backed loans and loan guarantees to support politically connected companies or to advance a particular ideology, are brought to light.

We have written about our opposition to the Bank before, invoking the ire of some of the Bank’s supporters.

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Export Import Bank

Mike Lee to GOP: Serious About Reform? Here’s Your Chance to Prove It

Sen. Mike Lee (R-UT)Heritage ActionScorecardSen. Mike Lee100%Senate Republican AverageSee Full Scorecard100% has some advice for Republicans if they are serious about regaining popularity.  It boils down to being true to their word and upholding “principles we already espouse.”  One such principle is their stance against crony capitalism, which was singled out for condemnation for the first time in 2012 in the Republican party platform.

“Republicans have slammed all this ‘corporate welfare’ and ‘venture socialism’ for ‘unfairly picking winners in the marketplace’,” he recalls.   

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