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De Omnibus Dubitandum - Lux Veritas

Sunday, September 21, 2014

What’s the Export-Import Bank, and Why We Will Be Happy, Happy, Happy If It’s Abolished?

Burt Folsom

“I don’t understand why my government finances my state-owned enterprise competitors in foreign countries. . . .” Thus spoke Richard Anderson, CEO of Delta Airlines…..Anderson’s prime target is the Export-Import Bank, which was created 80 years ago to promote American exports through subsidies to help with financing. But if Delta Airlines has to buy its Boeing planes at retail, and other countries get them at discounts (through loans or gifts from Ex-Im), then American taxpayers are putting their own airlines at a disadvantage to help Boeing and various foreign countries.

The issue of whether or not to continue funding the Ex-Im Bank is supposed to come to a vote in the House in less than two weeks—but the vote is so politically charged it may be delayed until next year. Either way, it will be an excellent test of whether Republican congressmen are more loyal to corporate donors, who often want Ex-Im loans, or to helping tax payers and abiding by the Constitution…..Throughout the 80 year history of the Ex-Im Bank, it has usually been more swayed by politics than by sound economics.,,,Under President Obama, Boeing’s share of the Ex-Im pot has increased even more. In 2012, for example, Boeing grabbed 82.7 percent of all loan guarantees awarded by Ex-Im–$12.2 billion out of Ex-Im’s $14.7 billion total went to subsidize Boeing’s sales…….To Read More……

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