Stop Obama’s green energy cronyism: Kill the Export-Import Bank

Barack Obama and Solyndra

One of the Export-Import Bank’s main goal, as it appears stated on its “About Us” page, is to “provide[s] export financing products that fill gaps in trade financing,” and effectively support U.S. companies that export “primarily to developing markets worldwide.”

The noble mission of filling in the gaps in trade financing, working as if the institution exists to fill in for an all-seeing eye and making sure that the developing world is being coerced into purchasing American products, doesn’t seem all that noble once you explore what the agency has accomplished in the last 80 years.

While the export credit firm offers financial incentives that promote a few amongst the greats of American corporations so that poor countries can afford U.S. products, one of the agency’s least publicized but extremely essential functions is to pick winners and offer them a striving market that is ready for their subsidized – therefore artificially affordable at the final consumer level – goods.

According to a research published by the Mercatus Center, the Export-Import bank’s most pressing problem is its procedural favoring of politically-connected corporations, which ultimately undermines competition, offering a disloyal and unjust environment to other companies that are not even allowed to compete with the government’s protégé abroad.

One of the industries that have been recently picking up steam with the help of the Ex-Im Bank is the green energy and sustainability sector.

Companies that benefit from a series of federal programs for their green energy-related tax breaks, end up double dipping by also collecting benefits from the export credit agency. Official data shows that the Ex-Im Bank has offered over $11.8 billion in assistance to members of the natural gas industry and $3.7 billion in assistance to solar between 2007 and 2014.

Green energy has received overall $19 billion in assistance from the agency, making it the industry that reaps the most benefits from the subsidies dealer.

When congressman Jeb Hensarling (R-TX) talked about the Export-Import Bank being the “face of cronyism,” he was right: in the age of President Obama, the taxpayer-funded agency is entrusted with the task of promoting the green industry.

Its main business model continues to be the same: subsidize the west and push products to poor countries that desperately need the aid but do not necessarily need what’s being offered in return for the handout.

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