This is a long fight and getting rid of the Export-Import Bank is just the beginning. A battle in a larger war to reduce the size and scope of government and to reduce the power of the current crony capitalist system. It will be a slog. Blood will be lost. But make sure most of the blood comes from the cronies and not from those who strive for a reasonably honest government and economy.
The furious war of words in Washington currently waging over the Export-Import Bank is making a lot of people uncomfortable. It’s causing so much discomfort because challenging the Ex-Im Bank not only threatens the crony capitalist arrangement that describes too much of our government’s business, but it’s also tearing down long-held and convenient stereotypes.
Let’s first address the crony capitalism issue. The fact is, the Ex-Im Bank is a tool of only the biggest businesses. It hinders free market competitiveness, especially in the domestic market. The bank’s supporters will correctly point out that it aids a large number of small businesses too, but that’s still just playing with the numbers. The truth is that 76% of the Ex-Im’s financial aid goes to the largest corporations, like Boeing, GE, and Bechtel. The argument that it’s okay to support the biggest companies because they create the most jobs is also bogus. We know that it’s the emerging and smaller companies that fuel almost all the net new job creation in America. As CNBC’s Larry Kudlow explained more than a year ago, the Ex-Im Bank is very strong symbol of destructive corporate welfare.