April 24, 2014

Photo: Xinhua/Sipa USA/Newscom

This September, Congress will have the opportunity to terminate a federal “bank” that doles out loans to foreign countries and well-connected major corporations while leaving taxpayers like you are on the hook for any losses.

Heritage Foundation expert Diane Katz explains that the costs of the Depression-era Ex-Im Bank outweigh the benefits:

Ex–Im advocates offer myriad excuses for maintaining government interference in export financing, including job creation, gaps in private investment, and government subsidies lavished on foreign firms. Such justifications do not stand up to the facts, and the purported benefits, if any, are not commensurate with the risk to taxpayers.

Unfortunately, Katz continues, special interests benefit from its largesse. “The bank is a conduit for corporate welfare beset by unreliable risk management, inefficiency, and cronyism.” Even then-candidate Barack Obama described it in 2008 as “little more than a fund for corporate welfare.”

This type of government interference inevitably “distorts the competitive landscape, with winners and losers determined by political considerations rather than the merit of their products and services,” Katz argues.

Do you think the Ex-Im Bank’s charter should be terminated?

Comments (45)

Anthony James Norungolo - April 24, 2014

Our government is completely out of control. There are thousands of expenditures that should be eliminated.

Patricia - April 24, 2014

Absolutely!

Roy Johnson - April 24, 2014

The US should not be borrowing or loaning any monies! We must balance our budget and demand the rest of the nations to pay their fair share! The US is the country 99% of the world would rather live in!

Charlotte Reicks - April 24, 2014

Yes, absolutely! I’m tired of working hard to make a living at 79, and support this kind of graft.

Ellen Elmore - April 24, 2014

Yes, the Ex-Im Bank’s charter should be eliminated. This bank picks winner and losers in the economy and invites cronyism and corruption.

Dennis Winters - April 24, 2014

Of course the export-import bank should be terminated. Whenever the Federal Government gets involved in trying to control free market activities, you can bet it is because certain special interests and corrupt government officials will benefit.

Pat Hartis - April 24, 2014

Yes!

Arlin R. Johnson, Jr. - April 24, 2014

When there are no redeeming qualities to an agency, bank or service it should be shut down a quickly and as inexpensively as possible. Subject bank fits that criteria – shut it down and dump it in the nearest trash can – NOW!

Joe Bayer - April 24, 2014

Another example of government waste. Shut it down and stop the corporate welfare handouts!

Raynold Jackson - April 24, 2014

I am not sure if this is The Overseas Private Investment Corporation or not, but yes it should be terminated. Hopefully after we take back the majority in the Senate.

Keith Hunt - April 24, 2014

Yes terminate at once

David Parker - April 24, 2014

Yes, I think it should be terminated, and more money should go into bringing industry into this country for American workers.Make America a producing country again instead of exporting jobs for cheap labor,and mostly inferior products!

Kaye Johnson - April 24, 2014

It goes without saying.

Joe and Kay Walker - April 24, 2014

Eliminate it absolutely!!!

Nona Lightner - April 25, 2014

yes it should!

Heritage Member - April 25, 2014

xIn every sector of the private economy where the Federal Government involved itself and provided the guarantee which means the current and future tax payers are on the hook prudent and proper restraint was thrown out of the window.
Eg. Health, Housing, Student Tuition, Food etc

EXIM is no exception to this rule. We all are on the hook to pay Loans off if the Foreign Governments refuse to pay.

Founding Father Thomas Jefferson explicitly warned against this.
In his and other Founding Fathers notes Constitution was created to restrain the Federal Government in indulging in these sort of things and after that then Constraining Individual Liberty, Confiscating Individual Property and Limiting Individual’s Pursuit of Happiness.

For last 100 years we have really accelerated in the path away from what Founding Fathers intended.

We need to have a Liberty and Free Market Panel evaluating each and every legislation, regulations of the last 100 years and dismantle them with 10th Amendment given primacy at every turn and at the first available opportunity.

David W Bourland - April 25, 2014

Yes the Import Bank is just another tool of the Progressive Left, eliminate it!!!!!!!!!!!!!!! dwb

Shirley - April 25, 2014

Yes, it should be terminated. We are totally out of control on many areas and seems like no one has any sanity in what is happening!

Lynn Hackerson - April 25, 2014

Certainly time to terminate this graft producing bank.

Rebecca McClaskey - April 25, 2014

Yes. I believe that the Ex-Im Bank should be terminated. I do not see in todays culture that any Foreign Firm has the best interest of the American Tax Payer in mind. Let them fend for themselves. I would like to stop importing all goods from Foreign companies and force Americans to start making some of the Foreign crap sold today to be made in America. It the crap is going to be purchased why not make it here. Give some of that tax money to crap making start-up companies in the US.

Ken - April 25, 2014

Yes, Large corporations need to put on their big boy pants and set up payment plans for their products if that is what it takes. Somebody like GE or Boeing can’t tell me they don’t have the talent.

C R Miertschin - April 25, 2014

This one is so easy to decide, do it yesterday!!

Jim Keller - April 25, 2014

Terminate this export-import Bank stopping another waste in U. S. Gov’t spending. Federal Spending must br brought under control.

Kevin G. - April 25, 2014

Yes eliminate the charter and while we are at it
eliminate a whole lot of government subsidies eg.
farm, green energies etc If a business can’t make
it on its own why should the tax payer shoulder
the risk.

Dennis Ray Smith - April 25, 2014

Most definitely!!

Mark Morton - April 25, 2014

The government itself should be eliminated!

Dorothy Weinel - April 25, 2014

Yes the Ex-Im Bank should be terminated. It is time for all this cronyism to end and quit spending money that we do not have. It is time to end the corruption by down sizing big government.

Dennis R McCannon - April 25, 2014

This is just like the majority of the government run programs, a sham filled with fraud and abuse. The government should get out of the business of giving money away.

Judith - April 25, 2014

I think the answer is obvious to all conversatives – absolutely it should be stopped! Can Congress do what’s right? I agree with Anthony – our government is out of control.

John Daugherty - April 25, 2014

Federal Govt. is not constitutionally allowed to own banks, land, car companies, or much of anything else. It’s not allowed to run education, farms, turtles, or much of anything else not related to defense.
The Federal Govt. needs to get out of our lives, businesses, and business. They don’t run anything well, but we must depend on it for defense.

larry malone - April 25, 2014

It is now time to reduce the size of the Federal Government. It is too large,over bloated and out of control. Too much money is wasted and lost every year,with out any accounting as to how or why. We are running out of time to stop this runaway train before the wreck happens.

Shelley Townley - April 25, 2014

It is bad enough that Americans are on the hook for banks, “green energy” companies like Solyndra, and hundreds of other companies that receive subsidies from Politicians who then get campaign donations when they are up for re-election. Now we find that we are on the hook to bail out many of these companies if they fail!

A prime example is the promise made to Health Insurance Companies to convince them to participate in Obamacare. The companies are guaranteed that they will receive taxpayer subsidies if they lose money, which is very likely.

Who will bail out the taxpayers?

Don - April 25, 2014

Yes – immediately!! And obtain immediate repayment of US taxpayer funds used for loans!

philip scardino - April 26, 2014

Yes, the Ex-IM Bank’s charter must be terminated!

Mary Taylor - April 26, 2014

The Ex-IM’s banl charter should be TERMINATED NOW!

Diane - April 26, 2014

Indubitably! Totally unnecessary and asinine. I appreciate the comments of other responders as I agree with them. Politicians are “hoarding” detrimental and expenive garbage.

John Zak - April 27, 2014

NO! The Ex Im Bank facilitates loans that allow us to increase exports. Increasing exports helps with our balance of payments and that has many important impacts on our financial health and our currency.

Holly Chapo - April 27, 2014

No doubt about it – the Ex-Im Bank’s charter needs to be terminated – permanently!!

Virgil Telford - April 28, 2014

There are many good reasons for terminating the bank but 1 is all that is needed. It, along with so many other programs, go beyond the limits placed on the federal government by the constitution.

Judy Lamoreaux - April 28, 2014

Yes!! There are so many “hidden” taxes that it is reminiscent of Michigan’s past regarding stealth taxation tactics. This is breaking the backs of all tax payers and deminishing our country’s ability to experience sustainable financial growth.

Jeff Beck - April 29, 2014

This and many other Federal special interest ventures should never have been started in the first place, but at this point should certainly be eliminated.

T Rand - April 30, 2014

Yes, terminate the export/import bank.

O - May 3, 2014

Absolutely! Along with several dozen other gov’t programs, departments, & agencies!

Katy Landers - May 6, 2014

Yes I believe this should be terminated. We have to start whittling away at least until Congress has the sense to pass a balanced budget amendment which would make something like this easy to eliminate.

J. Frey - May 12, 2014

Yes…let’s call a “spade a spade.” This is more than just cronyism, it is corruption covered up by twisting what’s right to keep doing what’s wrong and immoral. Taking unnecessarily from taxpayers is stealing.
Julie – May 12, 2014

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