The essay in The Register on 9/15/2014, by Mary Andringa and Jay Timmons in support of reauthorizing the Export-Import Bank (Ex-Im Bank) was well done. The fact that the Ex-Im Bank returned $1 billion in profits to the U.S. Treasury is very persuasive. Of course the same thing could be said about the U.S. government getting into about any business. If our government ran a grocery store or a tractor manufacturing plant, it is very likely that it could make a profit. But we don’t (or shouldn’t) do things that way in the United States.
In this case, there is good reason to believe that privately owned banks could provide this kind of financing for our manufacturers who want to export their products to other parts of the world. The manufacturers should be willing to guarantee the debt of their customers if that is what is needed to secure financing for their buyers. The fact that Ex-Im Bank financing, “is available to any exporter of any size” does not mean that this isn’t an example of crony capitalism. In this case, the crony capitalists just happen to be a very large group of manufacturers who want the government to guarantee loans for their foreign customers.
We have created a crutch for these businesses. We need to take away that crutch and move towards free market capitalism.
Link to Register article: http://www.desmoinesregister.com/story/opinion/columnists/iowa-view/2014/09/15/iowa-view-export-import-bank-economic-engine/15650761/