End the Corporate Welfare of the Export-Import Bank

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I recently signed onto a letter with a number of other conservative and liberty minded leaders across the US urging the Congress and the current administration to end the Import-Export Bank.

This boondoggle of corporate welfare has gone on for far too long. I agree with Ron Paul’s 2001 statement on the Import- Export Bank when he urged Congress to end this STATE created debacle  “for economic, constitutional, and moral reasons.” He said, “The Export-Import Bank (Eximbank) takes money from American taxpayers to subsidize exports by American companies. Of course, it is not just any company that receives Eximbank support- rather, the majority of Eximbank funding benefits large, politically powerful corporations.” Read here for full statement from Dr. Ron Paul to the House Financial Services Committee in 2001.

Of course Ron Paul was as right in 2001 as this group of leaders is in 2012. While this isn’t just an Obama problem because it has existed for years – it is still no more appropriate now than it was before Obama, and it needs to end.

Let’s end the collusion that has become corporate welfare. Let’s stop subsidizing failing business models, and let’s put an end to private gains that are only coming with public risk. Let’s end the Corporate Welfare of the Export-Import Bank, and let’s build a free market system once again.

Excerpt of content from letter below

RE: The reauthorization of the Export-Import Bank of the United States before the Bank’s current authority expires at the end of May. The Obama   administration aided by politically connected corporations is seeking an extension of the Ex-Im Bank’s reauthorization and a major expansion of its borrowing capacity.

ACTION: With the Federal government saddled with trillion dollars in deficits and debt the Export-Import Bank should be neither expanded nor reauthorized. We urge all organizations and individuals concerned about the size of the federal government to issue op-eds, alerts, blog posts, releases, and other communications warning about the implications of reauthorizing of the Export-Import Bank.  Time is short, therefore please do not delay.

ISSUE-IN-BRIEF:  The EX-IM was a “New Deal” program created during the Roosevelt administration for the purpose of making loans to the Soviet Union. It became an independent agency in 1945 expanding its reach and since then has doled out hundreds of billions of dollars with very little accountability.

• The free-market objection to this government entity is that the Ex-Im Bank is a government subsidy to certain companies with influential friends favored by the federal government—picking private-sector winners and losers.

• While it has allegedly been self-financing for a number of years—much like Fannie Mae & Freddie Mac—taxpayers remain exposed to tens of billions of dollars of loans and guarantees.  (FYI…the Bank sought a $3 billion bailout in 1987 because of mismanagement of funds)

• Bankrupt companies like Enron and Solyndra benefitted from Ex-Im Bank loans and loan guarantees.  As outlandish as it sounds, so did a Mexican drug cartel and an oil company with ties to the Russian mafia.

• In fiscal year 2009, Ex-Im guaranteed $8.4 billion of loans to a single company—Boeing—an astounding 90% of Ex-Im’s entire loan guarantees that year.

• In fiscal year 2010 Boeing was awarded $6.4 billion in loan guarantees—63% of the total of Ex-Im loan guarantees for that year.

• The bankrupt company Solyndra benefited from a $10.3 million loan guarantee from Ex-Im’s “Renewable Express” program, which was created to specifically aid the renewable energy industry

Copy of letter I signed with full list of leaders HERE.

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