By East Valley Evan
If you look up the definition of corporate cronyism in the dictionary, the Export-Import Bank will be its prime case study. Although the Ex-Im Bank was created to finance and bolster America’s exports, the taxpayer funded bank has not only not improved exports but has been by expert accounts a financial disaster.
In fact, the only group that has benefited is well connected global elites, many of which are foreign corporations with deep Washington, D.C. connections.
During the East Valley Chambers of Commerce Alliance debate, former Arizona Senator President Andy Biggs enthusiastically supported the re authorization and creation of the Ex-Im bank. Despite the Bank’s terrible financial record, Andy Biggs had no problem supporting an inefficient subsidized institution that benefits the few at the expense of the many.
Ex-Im Bank is an example of the corruption in Washington. Although clearly a fraud, well connected financiers and subsidized loan recipients have heaped money and influence on Congress to continue the authorization of the Bank’s corporate welfare gravy-train.
Academics and experts have criticized the bank for becoming nothing more than a welfare bank for globally connected elites. As experts have said:
“An increasing body of evidence shows that the Ex-Im Bank provides subsidized financing to big businesses at the expense of smaller businesses and taxpayers while doing little to promote exports, create jobs, or improve competitiveness of US firms. Removing this source of government-granted privilege can only help US exporters.”
This great video explains why it is such a huge welfare failure.
As a reminder, in 1986 the Ex-Im Bank was embroiled in a controversy for funneling money to communist Angola. Almost a year later, the Ex-Im Bank losses were so staggering that it had to receive an Obama-esque bailout out by Congress.
As a reminder, the Ex-Im Bank does not improve our American exports.
Although there are not too many conservative free-market litmus tests left in the world, the Export-Import Bank is a shining example of cronyism at its worst.
If we cannot trust Andy Biggs to oppose something so obviously corrupt as the Ex-Im Bank, how can we trust him to rein in spending in Washington?