The Ex-Im Bank Has Run Its Course
(Washington D.C.) – The Export-Import Bank, which is supposed to help foreign companies buy U.S. exports by providing financial assistance, is scheduled to terminate on June 30th. The bank – including its operations and history of fraud – is the subject of hearings this week before committees in both houses of Congress. While supporters of the Ex-Im Bank claim it supports small business, studies have shown that its actions benefit in large part a handful of big companies. The bank has been granting taxpayer-backed financing to foreign governments and companies at below-market rates to help them buy U.S. goods for over 80 years.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
“The government should not be in the position of choosing winners and losers. Even President Obama has said the Export-Import Bank serves as corporate Welfare . The Bank’s efforts only help less than one percent of one percent of small businesses. Rather than channeling hardworking Americans’ money into a select few companies, these companies should be seeking funds in the private market, which is better equipped to evaluate risk and needs. Our taxpayers’ dollars should not go into imprudent investments that only benefit a few. Lawmakers would do well in letting the Ex-Im Bank expire and work instead to create policies that help our small business entrepreneurs flourish and start their businesses without undue disadvantage from government-backed competitors.”