Stop Obama’s Crony Bank: Ex-Im distorts the free market by doling out billions to politically-connected big businesses

Tell Congress to Stop Obama's Crony Bank

Congress will soon consider reauthorization of the Export-Import Bank, a New Deal-era agency that exists solely to funnel billions of taxpayer dollars to foreign corporations to buy goods from companies based in the United States.

Ensuring Ex-Im’s survival has become a pet cause for the cronies at the U.S. Chamber of Commerce and other special interest groups. While its supporters claim that the Ex-Im helps small business, that couldn’t be further from the truth. The Export-Import Bank has become an ATM for big business, doling out billions in corporate welfare to the politically-connected.

Boeing received nearly $8 billion in taxpayer-backed loan guarantees from the Export-Import Bank in FY 2013. That’s 66 percent of the loan guarantees it made in that fiscal year. Perhaps that’s why Ex-Im has earned the nickname “Boeing’s bank.” Caterpillar hauled in $1.34 billion and General Electric received $1.7 billion.

In 2008, Barack Obama, then a candidate for president, called out the Export-Import Bank for what it really is: “little more than a fund for corporate welfare.” That was true then, as it is today.

But, like he’s done on so many other issues, Obama changed his position once he took up residence in the White House. In 2012, Obama successfully lobbied Congress to save Ex-Im. And Obama wants Congress to rubber stamp reauthorization of the crony Bank again this year.

Sign the Petition

While its apologists claim the Bank turns a profit, the Congressional Budget Office recently estimated that it will actually cost taxpayers $2 billion over the next 10 years, under the “fair-value” accounting method.

And contrary to its supporters’ claims, the Ex-Im doesn’t do much to boost U.S. exports or related jobs, according to research recently published by Veronique de Rugy of the Mercatus Center. The Bank accounts for less than 2 percent of the total value of U.S. exports and 2.3 percent of export-related job creation.

Ex-Im distorts the free market, allowing federal bureaucrats to pick winners and losers. And the Bank does it on the backs of hardworking taxpayers. Finally, it doles out dollars to countries that aren’t too friendly with the United States, including Vladimir Putin’s Russia.

Businesses should compete on their own merits, without taxpayer-backed subsidies given to them by federal agencies like the Export-Import Bank. And the United States doesn’t need promote cronyism to encourage free trade.

Thankfully, fiscal conservatives like Senator Mike Lee and Congressman Jeb Hensarling are making a huge push to end the Export-Import Bank, but they need your help to make it happen.

Sign the peition and help stop the Export-Import Bank!


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