Seal of the Export-Import Bank of the United States. (Photo credit: Wikipedia)
In Washington, nobody can seem to come to any agreements. But given the numerous social and economic problems and issues we face as a nation, our government should not be forwarding to wealthy politically connected corporations, our limited public resources. And this is precisely what is done by the Export Import Bank.
Some in favor say the Ex-Im Bank protects jobs, promotes U.S. exports and for the taxpayers is a positive deal. These arguments don't stand up under scrutiny.
The truth is that less than 2 percent of U.S. exports are backed by Ex-Im annually, mostly to benefit huge companies like Caterpillar and Boeing.
And the Government Accounting Office disputes the bank's claim they supported 205.000 jibs in 2013, by saying among other things they didn't consider how many jobs would have been created without them.
Another negative report issued by the Congressional Budget Office states that over the next decade Ex-Im is projected to yield to taxpayers losses.
A real problem with the bank involves the many groups ignored so far in Washington, that are affected by Ex-Im activities.
It is so important that we take in the political privilege costs such as higher prices, destroyed potential, job losses, resource misallocation and market distortions that are for the most part unseen.
Ex-Im's supporters are fast to tout their successes, but not anxious to discuss the 98 percent of unsubsidized exports.
Ex-Im harms export opportunities for firms in several ways, including making it more difficult for unsubsidized buyers to secure their own financing.
There are ripple effects to these capital market distortions. The poorer go out of business and the subsidized get themselves richer and richer.
Another problem caused for unsubsidized employers is that they may have to lay off workers, cannot raise wages and certainly not be hiring as they face Ex-Im subsidized competition.
It is the regular taxpayer who is the victim of all these multi-million dollar dealings of the bank and all their huge corporate connections.
The bottom line is that it is time that someone take the step to protect the interests of the average citizen taxpayer, and not worry about the huge well-connected corporations.
3 Reasons to KILL the Export-Import Bank FOREVER