Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Competitive Enterprise Institute (Reporter)
Contributor profile | More stories
Story Views
Now:
Last Hour:
Last 24 Hours:
Total:

Losing the Ex-Im Bank Battle Could Lead to a Victory in the War Against It

% of readers think this story is Fact. Add your two cents.


As flashpoint issues go, the Export-Import Bank is an unlikely candidate. And yet, here we are.

Called Ex-Im for short, the agency provides financial assistance to United States exporters and their customers abroad, though critics argue Ex-Im is prone to corruption and cronyism. Unlike most other agencies, Congress has to periodically renew Ex-Im’s charter or it will shut down. The House is voting this week on a bill from Rep. Maxine Waters to reauthorize Ex-Im for 10 years, though Senate Majority Leader Mitch McConnell will not act on the bill in the Senate. Meanwhile, the agency is living on borrowed time under the continuing resolution that expires on Nov. 21.

The Waters bill contains no reforms and would actively make the agency worse and less accountable. A Senate bill sponsored by Sens. Kyrsten Sinema and Kevin Cramer suffers similar problems. Meanwhile, the Trump administration is pushing for a “clean” 10-year reauthorization that, while it doesn’t add new problems like the Waters and Sinema-Cramer bills do, it doesn’t solve any of Ex-Im’s cronyism problems, either.

Last time around, in 2014, Ex-Im’s authorization lapsed for the better part of a year after Congress declined to renew it. Even after reauthorization eventually passed in 2015, the agency was unable to perform transactions larger than $10 million, normally roughly five-sixths of its business. Expired board member terms during the lapse left Ex-Im shy of the needed three-member quorum to approve such transactions. The Senate refused to confirm replacements until May 2019.

During this period of reduced activity, annual U.S. exports increased by $128 billion. Boeing, which alone often accounted for half of Ex-Im’s business in most years, enjoyed record profits. Its CEO publicly told shareholders it had no problem finding private financing that normally would have been provided by Ex-Im. According to the Mercatus Center’s Veronique de Rugy, China was the largest foreign destination for Ex-Im financing in 2014, Ex-Im’s most recent year at full capacity. The single largest state-owned beneficiary was China Air. Ex-Im clearly cuts against President Trump’s China policy goals, but he still favors reauthorization.

Ex-Im has no visible effect on the economy but has resulted in dozens of corruption allegations, while mostly benefiting a top-ten list of companies that do not need the help, such as Caterpillar and John Deere. It should be shut down. Since Ex-Im will instead almost certainly be reauthorized, the relevant battleground is now over second-best reforms. The Waters and Sinema-Cramer bills would reauthorize Ex-Im for a decade, more than double the usual interval. Two years would be better, so each session of Congress would have a chance to weigh in on Ex-Im’s performance.

The bills would also raise Ex-Im’s portfolio limit to $175 billion, up from $140 billion. It should instead be set at most to $60 billion, roughly in line with Ex-Im’s current portfolio size.

Most importantly, the bills would essentially remove Ex-Im’s quorum requirement for approving transactions over $10 million. Ex-Im’s board is Senate-appointed, making it one of the few available democratic checks on agency abuses. Taking away this accountability would give more power to an executive branch that already has too much, something Democrats should consider in the age of Trump and something Republicans should consider for when power eventually changes hands.

The bills would put more than $200 billion of additional taxpayer dollars at risk over the next decade, despite a significant risk of recession in the next few years. Precisely because Ex-Im should be closed, there is a real possibility its reauthorization will be folded into a must-pass spending bill, rather than put to a stand-alone vote. This should not be allowed to happen.

Regardless of how this reauthorization battle turns out, the last five years have already been a significant victory for reformers. The Nobel-winning economist Ronald Coase once wrote, “An economist who, by his efforts, is able to postpone by a week a government program which wastes $100 million a year (which I would call a modest success) has, by his action, earned his salary for the whole of his life.” Over the period from 2014 to 2018, Ex-Im’s reduced activity spared taxpayers from nearly $48 billion of risk exposure, or nearly $12 billion per year. Ex-Im’s total portfolio decreased by $52 billion, or an average of $13 billion per year. This is more than a modest success.

Due to Ex-Im’s reauthorization requirement, reformers will have another opportunity in a few years — a lesson in institutional design that should be applied to other agencies.

Originally published at The Washington Examiner.

Image: 
Experts: 
Ryan Young
Date: 
Thursday, November 14, 2019
Search Keywords: 
Media appearance type: 
Teaser: 
As flashpoint issues go, the Export-Import Bank is an unlikely candidate. And yet, here we are.



Source: https://cei.org/content/losing-ex-im-bank-battle-could-lead-victory-war-against-it
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Join our affiliate program and earn extra money by sharing with friends and family or by posting on your social media.

Order by Phone at 888-809-8385 or online at www.mitocopper.com


Get our Free Ebook, "Suppressed Health Secrets"  with  Natural Cures THEY don't want you to know!

APeX - Far superior to colloidal silver! Destroys Viruses, Bacteria, Pathogens with Oxygen plus Silver!

Supreme Fulvic - Nature's most important supplement! Vivid Dreams again!

Ultimate Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Organic Hemp Extract (CBD) - Full Spectrum high CBD (3300mg) hemp extract eases stiff joints, relieves stress and more!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)


FINAL WARNING!  Diseases are EXPLODING!  Watch this Video about APeX and You'll THROW AWAY Your Colloidal Silver!  APeX destroys Viruses, Bacteria and other Pathogens with the power of Oxygen PLUS Silver!  Nobody else has a product like THIS!   See why the inventor hasn't been sick in 16 years and why you'll never hear about it on the FAKE NEWS!  Get some now and tell your friends about it too so we can reach more people!  


APeX Interview - Superior to Colloidal Silver from Lee Canady on Vimeo.


Learn about APeX Here and Get the 50 Page Report in PDF format.   Call us at 888-809-8385 to order by phone.



Report abuse
Loading...
Loading...

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

MOST RECENT
Loading...
Load more ...

SignUp

Login

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.