Yes Virginia, Ex-Im Bank costs taxpayers

Ex-Im-Bank cc

In many ways actually.

Free enterprise. Not crony capitalism.

(From The Times-Democrat)

It would be easy to attribute Obama’s support for Ex-Im to the typical liberal desire to extend government regulation over the free market, but much more difficult to explain is the support for the reauthorization of the bank among some Republican members of Congress. This GOP endorsement of Obama’s plea to maintain Ex-Im gives the administration undeserved, bipartisan cover for their continued encouragement of crony capitalism. If these were true free-market conservatives, they would see Ex-Im for what it really is: a fund for corporations (some with billions in revenue) to use taxpayer dollars for sweetheart loans.

Companies receive taxpayer-backed funding from Ex-Im, while making millions of dollars each year. According to the Congressional Budget Office, Ex-Im will cost taxpayers $2 billion over the next 10 years. This directly contradicts what the bank and their allies (who certainly have motivation to paint a rosier picture) claim that the Ex-Im Bank doesn’t cost taxpayers any money. Ex-Im supporters say the institution actually turns a profit, but only based on questionable accounting rules which certain government agencies are privileged to apply to themselves. Moreover, in spite of the stated objective of the bank as an agent for small business, it instead has primarily become an instrument of Big Business.

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