Congress lets Export-Import Bank expire

[Recursion]

Source: USA Today

The charter for the Export-Import Bank of the United States expires at midnight Tuesday, delivering at least a short-term victory for fiscal conservatives and activists who targeted the 81-year-old institution as a free market distortion.

"This is a small step toward renewing a competitive free-market economy and arresting the rise of the progressive welfare state and the cronyism connected to it," said House Financial Services Committee Chairman Jeb Hensarling, R-Texas, who had led the effort to end the bank. "Now the challenge for supporters of a competitive free-market economy is to make sure Ex-Im stays expired."

Congress failed to address the charter's expiration before they adjourned for the July 4 recess, but the bank's supporters say they will seek to renew the charter retroactively next month. The relatively obscure bank is an independent agency that acts as the export credit agency for the U.S. government. Ex-Im, as it is commonly known, helps finance the foreign purchases of U.S. goods for private businesses and disproportionately supports major U.S. companies Boeing, Caterpillar and General Electric.

In recent years it has come under increased fire by conservative lawmakers and activists who label it corporate welfare. They want the bank to expire and slowly wind down its current loan contracts.

Read more: http://www.usatoday.com/story/news/politics/2015/06/30/export-import-bank-expiring-congress/29468333/

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And the right and the left manage to come together to destroy another piece of the New Deal.

[jwirr]

1. Tell me about this agency - how exactly did they help during the New Deal and why do they

want to get rid of it now?

[Recursion]

2. They lend money to American companies that can't get fair credit overseas for exports

The farther elements of the right and left both hate it as crony capitalism (Grayson is attacking Murphy for supporting it).

Basically, if a company exporting somewhere can show that they are getting unfair credit terms overseas, the ExIm gave them a credit window.

[jwirr]

4. Thank you. I know a lot about the era having lived through it but this one I did not know.

[ananda]

3. Here's Obama's op-ed on the Ex-Im.

http://www.chicagotribune.com/news/opinion/commentary/ct-obama-export-import-bank-perspec-0701-20150630-story.html

As of Tuesday, the authorization for the U.S. Export-Import Bank, or "Ex-Im," expires. The bank's sole mission is to support American jobs by increasing our exports. That's it. It helps small businesses go global. It helps American entrepreneurs take that next step. It costs taxpayers nothing — all of its money comes from its own operations. In fact, it generates money for the taxpayer. That's how cost-effective it is.

Ex-Im has provided support to businesses and boosted exports in all 50 states, as a state-by-state analysis my administration put out Monday shows. Over the last six years, Ex-Im supported $5 billion of exports from 322 businesses in Illinois. But because Congress has failed to act, the bank's mandate is running out. That means it'll lose the authority to finance new exports in the future. Starting Wednesday, businesses that need additional help shipping their made-in-America products around the globe will lose that help. And that means lost sales, lost customers, and lost opportunities.

Other countries aren't going to just stop competing when Ex-Im lapses. There are 85 export credit agencies just like the Ex-Im Bank around the world. They're all fighting for sales and export-backed jobs. They're doing everything they can to help their businesses compete and win. Why wouldn't we do the same?

Here's why this matters. Over the past five years, we've worked hard to open new markets for our businesses, and as a result, more American goods are being sold around the world than ever before. Last year, we had record exports for the fifth straight year. And exports support nearly 11.7 million American jobs — 1.8 million more than when I took office — so by increasing exports, we're helping put more Americans to work. Plus, export-supported jobs are good jobs. They pay, on average, up to 18 percent more. That's more money in people's pockets, more breathing room for families, and more customers for American businesses.

[jwirr]

5. Thank you. I tend to think that we should have been supporting this.

[DesMoinesDem]

6. The Ex-Im Bank is little more than a fund for corporate welfare.

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7. It costs taxpayers nothing (actually it makes money) and supports manufacturing jobs in the US

Why the hell is any alleged progressive against that?

[DesMoinesDem]

11. I was just quoting Senator Obama. Why the hell would any progressive support corporate welfare?

[Recursion]

12. Because we like people to have jobs (nt)

[DesMoinesDem]

14. I already know the Republican arguement for all corporate welfare. Why are you repeating it here?

The majority of Ex-Im loans go to benefit a few large corporations. If the Em-Im Bank actually makes money (the CBO says they lose money) then the private market will replace it.

[Recursion]

15. It was FDR's argument for it too (nt)

[hughee99]

13. Yes, but now that the Republicans are for closing it down, it's different. n/t

[surrealAmerican]

8. I still can't figure out why the Republicans want to end this.

It generates revenue and helps big business.

[Recursion]

9. Because it favors existing companies

The "big business" wing is fine with it, but the Tea Party feels like it's yet another exercise in government favoritism.

[Daniel537]

10. This will have very negative consequences for U.S. jobs and the economy if its not resolved.

Attaching it to must-pass legislation will probably be the only way to get it passed in the House, since even most of the "leadership" now oppose reauthorizing Ex-Im. These wingnuts are doing all they can to sabotage the progress we've made on the economy to try to pin the blame on Democrats. Assclowns through and through.