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3 Reasons to KILL the Export-Import Bank FOREVER!

Created by Franklin Roosevelt, the Export-Import Bank gives taxpayer-back loans, loan guarantees, and credit insurance to foreign companies seeking to buy products from U.S. manufacturers.

The bank, colloquially known as Ex-Im, is notorious for inefficiency, ineffectiveness, and sloppy accounting.

It’s coming up for reauthorization later this year and for the first time in a long time, opponents have a real shot at ending this excresence of crony capitalism.

Here are three reasons to kill the Export-Import Bank forever.

1. It’s expensive.

In 2012 alone, Ex-Im authorized $36 billion in loans, guarantees, and insurance. The bank can carry a portfolio of up to $150 billion, meaning that taxpayers could be on the hook that much money.

2. It doesn’t boost U.S. exports.

According to the Mercatus Center’s Veronique de Rugy, Ex-Im’s favored firms account for around 2 percent of the total dollar value of American exports and 2 percent of the jobs associated with exports.

3. It’s crony capitalism at its most obvious.

Although Ex-Im’s defenders like to claim the bank levels the international playing field for small U.S. companies, virtually all of the agency’s resources go to supporting giant, politically connected firms such as Boeing, General Electric, Caterpillar, and John Deere. The American taxpayer shouldn’t be subsidizing their market share at home or abroad.

The new House Majority Leader, Kevin McCarthy, has said he is against reauthorizing the Export-Import Bank. He’s joined by representatives and senators on both sides of the aisle who are offended by the uselessness and cronyism of Ex-Im.

Hopefully, this is one New Deal–era policy that will finally disappear for good.

About 2 minutes. Written by Nick Gillespie and produced by Todd Krainin.

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  • Christophe||

    My inner cynic will be very surprised if it actually gets defunded.

  • 14rays||

    the first part of the video, where Obama is talking, he's stating that the Export-Import bank is waste. When I search Youtube for "Export Import Bank", on the first page of results, I find in 2012, he reauthorized the Export Import Bank.

    Politicians are all talk.

  • ||

    so if Obama signs a bill that does away with the bank can we say Obama is dismantling the New Deal?

  • Buckyball magnets||

    The buckyballs (magic magnetic ball) is indeed an cool magnetic building intellectual toy. Compared to the other types of Intelligence toys, Bucky balls magnetic building toys can simulate your brain, both left and right side, so you can benefit more from it.

  • ||

    I really don't understand why Reason TV has to distort the truth about the Export-Import Bank to validate its arguments against the Bank.

    1. Ex-Im is the only government agency that puts money back into the US Treasury.

    2. When an exporter uses Ex-Im Bank's programs, theirtheir international sales can go up anywhere from 0% to 49%!

    4. 90% of the Bank's transactions are for small business. Most of the dollar values do go to large companies because they sell airplanes, earth moving equipment, expensitve medical equipment and other big ticket items. 80 countries have ExIm Banks and they will be happy to eat our lunches and take market share from our manufacturers.

    No one in the world should have nuclear bombs. Should we get rid of our nuclear bombs too?

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