Congress’s Ex-Im Bank reauthorization vote to separate RINOs from real Rs

RINO123The US Export-Import Bank is seeking Congress’s help to extend its life a little longer.  Last reauthorized in 2012, it is set to expire at the end of September — if the Congress does not act.  But several Tea Party-aligned groups are lining up to pressure congressional Republicans to vote NO on reauthorizing this entity that basically hands out taxpayer-backed goodies to large corporate campaign contributors.  

Heck, even Big Barry derided it as “corporate welfare” when he was in the US Senate.

Defenders of the bank say it provides valuable aid to US businesses seeking to improve their exporting side of their operations.  But the good folks at George Mason University’s Mercatus Center have found that we’re all assuming the risk for a few businesses in a few states.  (For instance, 43.8 percent of all of the Ex-Im Bank’s disbursements go to Boeing — which is headquartered in Washington state.  As a comparison, 1.2 percent of the bank’s disbursements go to North Carolina, while a *whopping* 0.6 percent goes to South Carolina.) 

Roughly 2.7 percent of all exports from North Carolina businesses are backed by the Ex-Im Bank. A *whopping* 0.8 percent of South Carolina’s exports are backed by the bank.  As of 2007 — the most current data available, approximately 0.29 percent of all US small business jobs can be credited to backing by the Ex-Im Bank.  A *whopping* 0.04 percent of ALL US small business firms’s creation and survival can be credited to backing from the US Ex-Im Bank.

The Ex-Im Bank is a gold mine for the big corporations that dominate the US Chamber of Commerce.  But, as you can see, — despite what the politicians tell us — it has a minimal impact on the nation’s economy. The experts at The Mercatus Center have found that the biggest beneficiaries of Ex-Im Bank disbursements are amonshakeg the world’s wealthiest nations and some of the US’s stiffest economic competitors. 

Some of the most damning evidence against renewing the life of this albatross comes from analyzing the state reasons for the disbursements to businesses.  In 2013, the Ex-Im Bank disbursed more than $37 BILLION.    According to Mercatus, only 32.7 percent of total yearly disbursements by the bank are done so with the purpose of ”meet[ing] competition from a foreign, officially-sponsored export credit agency.”  About 5.5 percent of the bank’s total disbursements can be tied to ”assum[ing] political or commercial risk that exporter or financial institutions are unwilling or unable to take.”  About 10.9 percent of total disbursements are made for the purpose of “overcom[ing] private sector limitations.”  A staggering 50.1 percent of the bank’s total disbursements are made with absolutely NO justification whatsoever.  

Let’s look back at 2012 — the last time the Ex-Im Bank got reauthorized.  Walter Jones, Virginia Foxx, and Patrick McHenry were the only NO votes from the North Carolina delegation. (Now, McHenry and Foxx are in the House leadership. So, they will be following the lead of Boehner and Kevin McCarthy this time.) 

We posted back in 2012 about Renee Ellmers’s vote FOR and support OF the Ex-Im Bank. Let’s see if she does it again with Mr. American Idol breathing down her neck. This is like the economic incentive debate at the state level.  The state confiscates money from all of us to heap special benefits upon a select few.  With the Ex-Im bank, if a recipient defaults, we’re left to pick up the tab and cover the difference.

11 thoughts on “Congress’s Ex-Im Bank reauthorization vote to separate RINOs from real Rs

  1. Hey, even Tricky Dicky Burr is looking like he supports reauthorization of the Ex-Im Bank, like all his buds at the Chamber. Can’t wait to get rid of him in ’16.

    1. It looks like Tricky Dick Burr is more interested in being a lobbyist on K Street after 2016 than being a senator. That is why he longer listens to or cares about NC voters, and only cares about sucking up to what the special interests want.

      Tricky Dick took a term and a half to get to that posture. Thom will start off that way from day one.

  2. Getting rid of the bank in and of itself isn’t as big a deal as whether or not the House leadership waffle yet again….McCarthy made it very clear that he was going to off the Bank and rank-and-file took his word for it. If they retreat on this, they’ll lose more rank-and-file who are waking up to the fact that we can’t count on the leadership to do anything except betray us at every opportunity.

    Moreover, a lot of “conservative” Republican members of the NC delegation are looking pretty worthless at stopping this kind of nonsense in the first place. And a lot of them will own this vote just by virtue of the fact that they voted for John Boehner to be Speaker.

  3. Just more crony capitalism from the demonrats and RINOs. Rich Burr starts pretending to be a conservative sometime in 2015.

  4. The Export Import Bank is nothing more than a slush fund for members of Congress to reward corp who line their campaign coffers. It is #Cronyism & #CorporateWelfare on full display and currently is risking $130 Billion of American taxpayers money in the process. The Bank has been a little known gov agency and it’s proponents are stunned that We The People have discovered their secret. The US Chamber is in an all out fight to keep the status quo to the point that they’ve hired 3 of the top K St lobby firms to help. The truth is, 98% of US Exporters use the private market to finance their exports. Therefore the ExIm Bank subsidizes less then 2% of total US Exports. GE, Boeing & Caterpiller are some of the major recipients. Hardly small businesses.
    Hold your Congressperson accountable. Get them on record as to whether or not they will allow the bank’s charter to sunset. NO ACTION NECESSARY. It’s due to sunset Sept 30. No wind down time necessary-existing loans will continue to be supported. A wind down is already built into the charter. This issue could be a big win for conservatives. Call your Congressperson, Hagan & Burr’s office office & keep your position on their radar. If you have the opportunity, question them in public. Keep the pressure! Let’s win this one.
    Currently this is a House issue, however Reid is threatening to attach this to the CR, which apparently has the GOP shaking in their boots. Tell Burr to stand strong and do NOT allow a reauthorization. ( A tall order, I know, but we must keep the pressure on him.)

    1. Forgot to add:
      -74 cases of Fraud since 2009
      – Some of the recipients of their loans/subsidies have been Enron & Solyndra
      -The Bank has refused to implement any of the reforms mandated by Congress in 2012
      -Their own IG has documented the deficiencies in their underwriting practices
      And best of all- They lend money to State-Owned companies from countries like Russia, China & Venezuela who are not friendly to the US, putting American companies like Delta at a disadvantage.
      The fight is on twitter. Use #EndExIm

      1. Tricky Dick sent me a letter today. He is all in for ExIm. His letter is the laziest form letter on a topic I have gotten since Kay’s letters in O’care. Dicky states talking points from his support of exim in 2012. He has learned nothing since all the new research had come out on exim. Read NOTHING. States the bank brings in $ to the treasury when in fact, the CBO reports it will cost us $2B over the next 10 yrs. I could go on until your eyes glaze over. Please call tricky dicky, hagan and your rep ASAP. There is nothing the elites fear more than informed callers.

  5. ALEC seems to think that the Ex-Im Bank is all about supporting “Small Business”:

    Model legislation supporting “the efforts of the United States Government”, which include “the U.S. Export-Import Bank” was crafted in Rep. Tim Moffitt’s ALEC Task Force, and “Approved with amendments by the ALEC Board of Directors on January 28, 2013.”

    ALEC’s Board includes Reps. Moffitt and Tillis from NC.

    1. ALEC was once a great conservative legislative organization, but in seeking financial support from business, they have been bought and taken over by the special interests. This is a good example you give of how ALEC is now taking positions opposite of those it took back in the old days.

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