No need to renew the Export-Import Bank
Statutory authorization for the $140 billion Export-Import Bank is set to expire at the end of the month. Created more than 80 years ago, the bank has far outlived its purpose. At this point, there is no reason to vote for any measure that would extend its life.
The institution’s advocates like to tout how the institution helps “small businesses” compete in the international market. But as highlighted by last week’s Senate Banking Committee hearing on the topic, the bank frequently has missed its statutory target that at least 20 percent of its loans must be made to small businesses.
Obviously, many small businesses succeed without government help, even in the international market. Instead of holding out for the Export-Import Bank to give them a leg up, entrepreneurs advocate for a system that creates a level playing field.
Indeed, the single-largest beneficiary of Ex-Im largesse – Boeing, which by some measures accounts for 30 percent of Ex-Im’s subsidies by itself – already is planning for life without the bank, and is fully capable of providing financing to its customers out of its own balance sheet.
The Export-Import Bank is the definition of crony capitalism. Taxpayer dollars are used to subsidize loans for politically connected corporations. Not only is this a bad deal for taxpayers but Ex-Im also has contributed to a culture of corruption that should not continue.
Most alarming is that Ex-Im’s defenders are attempting to attach its reauthorization to other legislative business, like the National Defense Authorization Act or the Highway Trust Fund. These issues are completely unrelated and should be considered separately.
By running out the clock on the Export-Import Bank, legislators have an excellent opportunity to demonstrate their commitment to ending corporate welfare and expanding real economic opportunity.
