Friday, August 1, 2014

Senator Cruz's new deal

The Texan spits in the eye of crony capitalists--including those from Texas--by calling for an end to a bit of corporate welfare;
Ninety-eight percent of all U.S. exports are made without Export-Import financing. The government should not keep a special bank open for other the 2%, especially when the private sector could meet the need.
Even though President Obama once said on the campaign trail in 2008 that the Export-Import Bank is "little more than a corporate welfare fund," Democrats in Washington have shown no serious willingness to abolish it.
In fact, President Obama is requesting a $20 billion increase in the bank's lending authority — from $140 billion in 2014 to $160 billion by 2018.
No doubt at the behest of Senators Patty Murray and Maria Cantwell from Washington state, because the biggest beneficiary of Ex-Im's subsidies is Boeing.
We should remember how President Franklin Delano Roosevelt created the Export-Import Bank — through executive fiat in 1934. If President Obama wanted to create a new Export-Import Bank today by executive order, most Republicans could be counted on to oppose it. They shouldn't reauthorize it today. The Export-Import Bank wasn't a good idea in 1934, and it isn't a good idea in 2014, either.
Whether it was a good idea for fighting the Great Depression is irrelevant. With 21st century financial services available to international business, Ex-Im is unneeded.
The debate over keeping it open will be a telling one.
Those siding with foreign corporations, lobbyists and crony politicians will be on one side. Those fighting for the values and interests of American workers will be on the other.

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