Blog

5 Things to Know About the Export-Import Bank
Posted by Staff on July 01, 2014

1.    The Ex-Im Bank doesn’t create jobs.

  • Government export finance assistance programs like Ex-Im “largely shift production among sectors within the economy rather than raise the overall level of employment in the economy.” - Government Accountability Office, “Export-Import Bank: Key Factors in Considering Ex-Im Bank Reauthorization” 
  • “[A]t best the Ex-Im Bank creates jobs in export industries by destroying jobs in non-export industries.” – Donald Bodreaux, Ph.D, Professor of Economics at George Mason University
  • “By some estimates, the Bank’s loan guarantees have resulted in up to 7,500 lost U.S. carrier jobs, and up to $684 million of lost income for U.S. airline employees annually. – Delta Airlines

2.    The Ex-Im Bank doesn’t return money to the taxpayers.

  • The Ex-Im Bank’s profits aren’t real.  They are an accounting illusion.  The non-partisan Congressional Budget Office (CBO) reports that if the Bank followed more accurate accounting rules, its ledger would show a cost to taxpayers of $200 million/year, or $2 billion over 10 years.  -- CBO Fair-Value Estimate

3.    The Ex-Im Bank fails to help small businesses, even though it is required by law to do so.

  • Congress requires that 20% of Ex-Im’s authorizations go to small businesses, but Ex-Im consistently fails to meet this statutory requirement.  Ex-Im even admits this in its annual report (Page 45):

  • Ex-Im’s subsidies go overwhelmingly to very large corporations like Boeing, GE and Caterpillar.

4.    The Ex-Im Bank uses American taxpayers’ money to help foreign corporations, including businesses that are owned by the governments of China, Russia, Saudi Arabia, and the United Arab Emirates.

  • Of the 50 largest loans or guarantees approved by the Ex-Im Bank since FY2007, 46% of the loans have gone to state-owned companies or to a joint-venture that includes a state-owned company.  

5.    The Ex-Im Bank financed only 1.6% of total U.S. exports in 2013.

  • That’s less than 0.18 percent of the total U.S. economy.
    Post a Comment
    Fill out the fields below to submit a comment