June 27, 2014


Why Are Democrats Now Enthusiastically Carrying Water for Big Business? (Veronique de Rugy, June 26, 2014, National Review)

As I have pointed out before, the Ex-Im Bank overwhelmingly benefits some of the biggest, most politically connected firms in America, like Boeing, General Electric, and Caterpillar. In the process, the bank subsidizes wealthy foreign borrowers -- like Australia's richest woman, mining heiress Gina Rinehart, owner of the Ex-Im-financed Roy Hill Iron Ore Mine -- who who could easily find private capital without government privileges. The bank also subsidizes cash-poor foreign borrowers -- like the government-owned Ethiopian Airlines -- who are pushed to borrow beyond their means and expose U.S. taxpayers to their substantial default risk in the process. Finally, lenders benefit from Ex-Im finance by earning interest on loans whose risk is borne by American taxpayers. In the candid words of one JP Morgan banker (whose firm just happens to be the biggest private lender that benefits from Ex-Im), the bank is "free money" -- that is, for the firms who know the right people.

As expected, Chairman Hensarling was a great spokesman for why the bank's charter shouldn't be reauthorized. He also invited testimony from two witnesses who gave voice to the ranks of Ex-Im's many victims for the first time: Mr. Richard Anderson, CEO of Delta Airlines, and Captain Lee Moak, President of the Air Line Pilots Association. They gave concrete examples of how Ex-Im directly hurts the American firms and employees they represent -- tragically, some people have lost their jobs due to Ex-Im activities.

And yet, Democrats seemed mostly unmoved. 

history is over : the Left is pro-business.

Posted by at June 27, 2014 7:35 PM

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