by Ryan Young
Competitive Enterprise Institute
August 13, 2014
Ex-Im helps some businesses at the cost of hurting other businesses. It has a longstanding problem with fraud and corruption. The Bank’s dual mandate is self-contradictory, making it impossible for it to fulfill its mission. Ex-Im favors big businesses over small businesses in a way that violates its charter. It operates along economic ideas that were debunked two centuries ago. Ex-Im subsidizes banks. It is a bad policy intended, at least in part, to counter other countries’ similarly bad policies. It enables billions of dollars of unfair corporate rent-seeking. Finally, Ex-Im’s claim that it makes a profit is false. Businesses and consumers are better served by pro-market policies. Politics should be left out of financial decisions. Investors would get higher returns, and deserving companies would have easier access to capital. Consumers would be the ultimate beneficiaries of a financial system that rewards value creation over political connections.