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De Omnibus Dubitandum - Lux Veritas

Tuesday, November 19, 2013

Two More Strikes against the Export-Import Bank

by Nicholas Geiser on November 18, 2013
Two common points made in defense of the Export-Import bank are its recent profitability and the number of jobs it supports. During the recent reauthorization debate, defenders argued that it would be silly to cut a program that makes a profit for taxpayers and supports American jobs. The Ex-Im bank claims it posted a $1 billion profit in FY2013 and supports 255,000 American jobs.
However, new evidence undermines both these claims. As part of the 2012 Export-Import Bank Reauthorization Act, Congress directed the Government Accountability Office to review the Export-Import Bank’s method for calculating its impact on employment. The Bank feeds the value of the exports by industry into input-output tables published by the Bureau of Labor Statistics (BLS) to calculate the total number of jobs it supports. As the GAO’s report notes, there are several limitations of to this methodology:….To Read More…..

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