Source: NCPA
The Export-Import Bank detracts from U.S. open market competition and leaves taxpayers exposed to huge financial risks, according to a new report by National Center for Policy Analysis Research Associate Gene Lattus.
“While the Exim bank does support U.S. exports, it does not support free market trade,” says Lattus. “It could lead to further debt and reliance on the government, and in the event of widespread defaults could present a large bill to U.S. taxpayers.”
According to the report, the Exim bank:
- Claim to support job growth, but likely just redistributes employment across the economy;
- Creates barriers to entry for startups and breeds inefficiency among its beneficiaries;
- Is backed by the full faith and credit of the United States – meaning the U.S. taxpayers.
“The Exim bank’s aggregate impact on both employment and the value of U.S. exports is difficult to estimate,” says NCPA Legislative Director Brian Williams. “Its financing is a form of subsidy that detracts from the open market competitiveness that has made the U.S. economy the stalwart it is today.”