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.
