Ten (More) Reasons to Abolish the Export-Import Bank
As if Veronique has not given us enough reasons why we should abolish that relic of mercantilist thought, the Export-Import Bank, my colleague Ryan Young has just put out a study on ten reasons to do so.
Here are three of his reasons:
Ex-Im favors some businesses and hurts others, often benefiting foreign firms rather than domestic ones. It has favored foreign airlines, such as Air India, Korean Air, and Ryannair, over domestic airlines, such as Delta Airlines.
As many as 74 instances of fraud and bribery allegations involving Ex-Im employees have been made public over the last five years. For an agency with only 400 employees, this is a serious problem.
Ex-Im also favors big businesses over small businesses. Ex-Im touts that the vast majority of its lending activities go to smaller businesses. But more than 80 percent of the bank’s financing, measured in dollars, goes to big firms.
You can read more on the study here.