It looks like Boeing misread the market. Now it’s trying to get taxpayers to pay for its mistake.
Trump should have let the Export-Import Bank die.
(From Real Clear Markets)
This spring Boeing’s former CEO and other U.S. business leaders convinced President Trump to give a new lease on life to the Export-Import Bank, a trade-distorting relic of crony capitalism’s heyday. Just weeks later, Boeing asserted the sanctity of fair trade in allegations about Bombardier, a Canadian aircraft company.
The Export-Import Bank was on life support, but, in April, following a meeting with former Boeing CEO Jim McNerney, President Trump reversed himself and decided the Export-Import Bank should not be shut down after all. The Bank has supported major U.S. corporations for years with taxpayer dollars, with Boeing being its chief beneficiary. In 2014, before Congress moved to curtail its activities, the Bank provided long-term loan guarantees totaling $10.8 billion, of which $7.4 billion went to Boeing. All told, Boeing received about 40 percent of the Bank’s $20.5 billion in programs – hence the moniker “the Boeing Bank.”…
…Given the advantages Boeing enjoys courtesy of the Export-Import Bank and its defense contracts, it is both galling and ironic to see Boeing then ask for more U.S. government intervention over Bombardier’s sale of 75 C Series planes to Delta.