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Are you sure you actually even know what the Export/Import bank is?
The Bank doesn’t cost the taxpayer. In fact, it returns a profit to the Treasury — more than $1 billion in fiscal year 2013. How it does that, though, says one of its critics on the left, is little more than arbitrage.
SNIP...
Imagine, for a moment, that you’re an international salesman. You work for General Electric, which is one of the biggest producers of freight-hauling locomotives in the world. There’s a demand in South Africa, and you want to get in on it.
But you’re facing competition from several other locomotive manufacturers from around the world. You don’t want to lose out to the Chinese locomotive company. So you get in touch with the Export-Import Bank back in Washington, D.C., to press for a loan for South Africa’s state-owned rail operator, Transnet, that would enable them to purchase your locomotives, boosting your profits and, presumably, allowing you to hire more workers in Pennsylvania.
But China has its own Export-Import Bank, which could also offer Transnet a loan to buy Chinese locomotives. In fact, there are nearly 60 of these Export Credit Agencies (ECAs) around the world that effectively subsidize private companies’ foreign exports.
In short, the Export-Import Bank lends to foreign buyers like Transnet to make U.S. exports competitive. Without an ECA of its own, the fear of the Bank’s defenders is that U.S. exports would lose out to goods produced overseas.
But you’re facing competition from several other locomotive manufacturers from around the world. You don’t want to lose out to the Chinese locomotive company. So you get in touch with the Export-Import Bank back in Washington, D.C., to press for a loan for South Africa’s state-owned rail operator, Transnet, that would enable them to purchase your locomotives, boosting your profits and, presumably, allowing you to hire more workers in Pennsylvania.
But China has its own Export-Import Bank, which could also offer Transnet a loan to buy Chinese locomotives. In fact, there are nearly 60 of these Export Credit Agencies (ECAs) around the world that effectively subsidize private companies’ foreign exports.
In short, the Export-Import Bank lends to foreign buyers like Transnet to make U.S. exports competitive. Without an ECA of its own, the fear of the Bank’s defenders is that U.S. exports would lose out to goods produced overseas.
...
Since this keeps getting brought up at debates make sure you know what your talking about. Read this link for more information: http://www.pbs.org/newshour/making-sense/stop-pretending-know-export-import-bank/
