Several Republican congressmen have written to U.S. Export-Import Bank President Fred Hochburg, asking some probing questions about the business plan the bank submitted to Congress last month. They rightly express concern about the bank’s operations and risk management. They also cite the nondiversified portfolio of the bank, with its high reliance on the aircraft sector (which has long been about half of the bank’s exposure) singled out for particular concern. The letter, in short, gives a good indication of where bodies are buried at Ex-Im.
Downsizing Government has added a new essay on ending the Export-Import Bank, which subsidizes the financing of U.S. exports. Author Sallie James argues that the Ex-Im Bank creates economic distortions and mainly benefits large corporations that can obtain their own private financing.
Last week, the House passed the “No More Solyndras Act” on a mostly party-line vote. However, instead of terminating the Department of Energy loan guarantee program that subsidized Solyndra and other boondoggles, the bill allows applicants who filed before the first of this year to still receive handouts.
A new piece at the Library of Economics and Liberty written by Robert J. Bradley is a timely reminder that it’s often government policies that fosters bad corporate behavior—not the “free market” as the left likes to claim.
The latest conflagration over the media’s attempt to “fact-check” campaigning politicians centers on comments Paul Ryan made in his speech last night about a shuttered GM plant in his hometown of Janesville, Wisconsin:
According to a recent article in the New York Times, that’s what a lobbyist for Exelon Corp. “proudly” called the Illinois-based energy company. It appears to be an appropriate label.
With the federal government closing in on its fourth consecutive budget deficit in excess of $1 trillion, the national debt is hurtling toward dangerous levels. If the nation is to avert a debt crisis, federal policymakers need to aggressively balance revenues. Business subsidies, or “corporate welfare,” are a good place to start.
My new paper, “Corporate Welfare in the Federal Budget,” estimates that the federal government spends almost $100 billion a year subsidizing businesses.
Corporate welfare is a bipartisan problem, and it’s a problem at both the federal and state level. Yesterday, I discussed the recent demise of Obama-subsidized Abound Solar and the fact that Indiana Republicans were also involved in helping the company obtain taxpayer handouts. Adding insult to injury is another example of “crony capitalism” gone awry in Indiana.