Don't Reauthorize the Ex-Im Bank
July 14, 2014
The Export-Import Bank (Ex-Im) is a government-run bank that gives foreign businesses loans and loan guarantees to purchase American goods, explains Larry Kudlow, host of "The Kudlow Report." For example:
- In 2013, Ex-Im backed a $117.5 million loan guarantee to support Dubai's purchase of Boeing 737s.
- Sixty percent of money from Ex-Im goes to just 10 large corporations, including Boeing, General Electric, Caterpillar and Bechtel.
- Less than 20 percent of funds go to "small" businesses, which Ex-Im defines as having 500 to 1,500 employees.
Ex-Im claims to create jobs, but businesses complain that it does the opposite. Delta has argued that Ex-Im funds have given foreign airlines a competitive advantage over American carriers, costing Delta around 2,500 domestic jobs. Similarly, energy refining company Valero complained that $641 million in Ex-Im funds to a Turkish refinery builder has only hurt American manufacturers.
Kudlow notes that Ex-Im is worth $140 billion, funds which could be redirected to pay for corporate tax cuts, a move which would help all American businesses compete across the globe.
Ex-Im has also been plagued with fraud and corruption allegations, including instances of Ex-Im officials receiving kickbacks and bribes.
Source: Larry Kudlow, "GOP: Just Say No to Ex-Im," Daily Caller, June 27, 2014.
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