by Veronique de Rugy, Andrea Castillo
July 17, 2014
The Export-Import Bank (Ex-Im) does not meet its own supporters’ standards of success. Supporters of the Ex-Im argue that it plays a critical role in promoting US exports, yet the total export value of its annual portfolio only accounts for about 2 percent of the total value of US exports each year. Supporters argue that Ex-Im maintains or creates US jobs, yet the bank’s job calculation methodology is far from definitive – for every one job that the bank claims to create, workers in unsubsidized businesses can claim harm. Ex-Im does not substantially benefit small businesses, but disproportionately aids large corporations. It doesn’t level the playing field for US companies competing against foreign companies – it helps foreign consumers at the expense of domestic consumers, taxpayers, and borrowers. Ex-Im cannot meet its supporters’ stated standards. It has no claim to reauthorization and must be allowed to expire.