Ex-Im Bank

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.

Ex-Im Is The “Face of Cronyism,” Says Jeb Hensarling

Crony capitalism is America’s disease and the real problem with the modern perception of capitalism that most of the left likes to use against capitalism itself, without discerning between what voluntary trade and free markets can accomplish and what crony capitalism actually is all about.

It’s very easy to find perfect examples of crony capitalism in the age of President Barack Obama.

One of these perfect examples has been relying on taxpayer money to subsidize financial incentives destined to foreign companies that purchase U.S. exports: the Export-Import Bank.

The agency’s charter expires in 2014, making now the perfect time for opponents of crony capitalism to raise their objections to the agency’s upcoming congressional renewal. Heritage’s The Foundry talked to Rep. Jeb Hensarling (R-TX) about the Export-Import Bank and why he thinks that the federal export-subsidy agency should not be allowed to stay in business.

Corporate Welfare: Can Republicans Kick the Habit?

I periodically try to explain that there’s a big difference between being pro-market and pro-business.

Simply stated, policy makers shouldn’t try to penalize businesses with taxes, mandates, and regulations.

But neither should politicians seek to subsidize businesses. That’s why I’m against bailouts, subsidies, and other distortions that provide special favors for politically connected companies.

I have nothing against companies earning money, to be sure, but I want them to earn their profits in the marketplace rather than lining their pockets by using the coercive power of government to rig the rules of the game.

Republicans are about to cave on the crony Ex-Im Bank, surrendering more ground to the Obama White House

After months of a very public debate over the future of the Export-Import Bank, House Republicans are poised to temporarily extend the life of the controversial New Deal-era agency to avoid any drama before the mid-term election.

The Ex-Im Bank has, rightly, been criticized by conservatives both inside and outside of Congress because it has become symbolic of cronyism, the marriage of big government and big business. The Bank has doled out billions of dollars in taxpayer-backed loans to some United States’ biggest corporations, including Boeing, Caterpillar, General Electric.

Despite the efforts of some members willing to take on cronyism, House Republicans are poised to reauthorize Ex-Im, albeit temporarily, instead of risking a big fight before the chamber, because, apparently, there’s never a good moment to get into a debate over bad policy:

Speaker John Boehner on Tuesday signaled the House will extend the Export-Import Bank’s charter, saying that one of the institution’s biggest critics is on board.

The Ohio Republican said he is working with Texas Rep. Jeb Hensarling, the Financial Services chairman, who “thinks a temporary extension of the Export-Import Bank is in order.”

Big Business and big government cronyism is bad for taxpayers and consumers: Let the free market work

capitalism

There’s a common misconception that people in favor of free markets love corporations. That isn’t the case.

There’s nothing wrong with a business being highly successful and expanding operations. The question becomes what happens when their operations end up getting involved in government and when government tries to influence business.

This is an issue a lot of groups have struggled against. Both the original Tea Party and Occupy Wall Street protests were against the government-big business bailout of 2008/2009. The solutions were much different. The Tea Party wanted the government and businesses to be separated and not mix with each other. Occupy (outside of it’s not-top hits) wanted businesses taxed to eternity and capitalism destroyed.

The problem with Occupy’s solution is it expands the role government has in people’s lives. The idea of using higher taxes against businesses and “the rich” doesn’t work (just look at France). Burger King is also an example because of their plan to leave the U.S. if they merge with Tim Hortons. Paying taxes isn’t patriotic, despite what President Barack Obama thinks.

Elizabeth Warren’s hypocrisy exposed: She hates corporate welfare, except for when she doesn’t

Elizabeth Warren

Sen. Elizabeth Warren (D-MA) is the darling of the political left. They can’t get enough of her. The Massachusetts Democrat’s willingness to take on corporate special interests, especially Wall Street and big banks.

But Warren’s anti-big business populism only goes so far. She recently came out in support of the reauthorization of the Export Import Bank, the controversial New Deal-era agency known for issuing taxpayer-backed loans to politically-connected big businesses. Unlike Warren, it’s conservatives that are trying to end the Bank’s brand of cronyism.

The Club for Growth released a nearly 3-minute video this week exposing Warren’s hypocrisy, pointing out that Ex-Im represents is exactly the type of corporate welfare that the Massachusetts Democrat should be against:

Flip-flopper-in-chief: Barack Obama was against the crony Ex-Im Bank before he lobbied for its reauthorization

President Barack Obama used his weekly address to make a sales pitch for the Export-Import Bank, the New Deal-era agency that has come under fire from conservatives in Congress because of its taxpayer-backed loan guarantees to large corporations. Congress will take up the reauthorization of the Bank at some point next month, which could lead to a showdown between conservatives and the Washington political establishment:

President Barack Obama urged the owners and employees of businesses that rely on Export-Import Bank financing to tell members of Congress to “quit treating your business like it’s expendable” in his Saturday morning address.
[…]
Obama took aim at that characterization of the bank on Saturday.

“Its sole mission is to create American jobs. That’s it,” Obama said. “It helps many American entrepreneurs take that next step and take their small business global.”

The bank has been reauthorized 16 times before, “always with support from both parties” and under both Republican and Democratic presidents, the president said.

“This time around shouldn’t be any different,” he said. “Because the bank works. It’s independent. It pays for itself. But if Congress fails to act, thousands of businesses, large and small, that sell their products abroad will take a completely unnecessary hit.”

Kill The Ex-Im Bank: Let Free Markets Work

If Congress kills the Export-Import Bank it would be a massive win for those who love free markets. Both Jason Pye and Alice Salles have pointed out how the bank is a massive cronyism scheme, which doesn’t really help anyone except a select few. Wisconsin Congressman Paul Ryan made an excellent comment on the bank saying, “Republicans should be pro-market, not necessary pro-business.” This is something more people need to realize. Liking the free market doesn’t mean liking massive corporations, unless their products or services are great.

That isn’t stopping President Barack Obama from demanding Ex-Im be reauthorized. He said last week Americans would lose jobs if the bank wasn’t kept alive. Obama even made a comparison to owning a Ford dealership which doesn’t offer financing, while a Toyota dealership across the street does.

Today in Liberty: House authorizes lawsuit against Barack Obama, Rand Paul slams MSNBC host’s distortion of his record

“The most important single central fact about a free market is that no exchange takes place unless both parties benefit.” — Milton Friedman

— Happy birthday, Milton Friedman: You may have noticed that we’ve featured quotes from Milton Friedman, the famous free market economist and Nobel Prize laureate. He was born on this day in 1912. Words cannot express how much of an impact Friedman had on public policy. He advanced free market capitalism in various areas, especially in school choice. He played a key role in ending the military draft and made some of the compelling arguments against the war on drugs. Celebrate Milton Friedman’s legacy by checking out Capitalism and Freedom and Freedom to Choose: A Personal Statement.

Today in Liberty: Treasury Department halts Ex-Im deals with Russia, federal court grants D.C. a stay on gun rights ruling

“I am a libertarian with a small ‘l’ and a Republican with a capital ‘R’. And I am a Republican with a capital ‘R’ on grounds of expediency, not on principle.” — Milton Friedman

— Boehner dismisses Democrats’ impeachment “scam”: Speaker John Boehner (R-OH) says that the talk of impeachment is a “scam” being pushed by Democrats to boost their fundraising numbers and motivate their base. “This whole talk about impeachment is coming from the president’s own staff — and coming from Democrats on Capitol Hill. Why? Because they’re trying to rally their people to give money and show up in this year’s election,” said Boehner, according to the Washington Examiner. “We have no plans to impeach the president; we have no future plans. Listen, it’s all a scam started by Democrats at the White House.” Between Friday and Monday, the Democratic Congressional Campaign Committee (DCCC) sent out at least 19 fundraising emails (see them here and here) referencing either the lawsuit that Boehner plans to file against the White House or impeachment. The DCCC sent four more on Tuesday, including one with “ⓘⓜⓟⓔⓐⓒⓗⓜⓔⓝⓣ” in the subject line. The White House, however, says that it won’t discourage Democrats from fundraising off the completely unserious threat of impeachment.


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