Export Import Bank, Part 2

ex-imHas the tea party wing of the GOP found a new bugaboo: crony capitalism. In an article titled “Long-building conservative anger at Export-Import Bank reaches boiling point,” authors  Zachary Goldfarb and Holly Yeager write:

What began as a pet issue for a handful of conservatives is now turning the GOP on its head. The fight over the obscure agency (The Import Export Bank) has pitted traditional lawmakers backed by big corporations against tea party conservatives, who, still fuming over bank bailouts of 2008, insist that supporting free markets is not the same as supporting business interests.

Goldfarb and Yeager note:

Concerns about giveaways to corporations helped fuel Virginia Republican congressional candidate Dave Brat’s successful tea party primary challenge to House Majority Leader Eric Cantor in Virginia. Cantor, with close ties to the Chamber of Commerce and other corporate groups, helped organize a deal in 2012 that saved Ex-Im despite growing criticism by conservatives.

 Brian Beutler, writing in The New Republic explains:

It looks like the one big(gish) substantive consequence of Eric Cantor’s exit from the House Republican leadership will be the demise of the Export-Import bank. Or at least it looks very likely that John Boehner (who supports the Export-Import bank) will allow its authorization to lapse rather than pick a fight with conservative hardliners in the House.

One wouldn’t think the Export Import Bank would be a big deal for Republicans, Democrats, or tea party Republicans including Charles and David Koch who oppose the Bank, so what’s going on here? Do tea party Republicans hope to extract concessions from the leadership, to shutdown the government, or do they seek to discredit and replace the current Republican leaders? Will Speaker Boehner fight or cave in to pressure from the right? This may be a tough issue for Rep. Tom Reed. Funded by business interests, he would be expected to support the Bank.

© William Hungerford – June 2014

http://www.washingtonpost.com/business/economy/long-building-conservative-anger-at-export-import-bank-reaches-boiling-point/2014/06/27/cce4a87a-fe01-11e3-b1f4-8e77c632c07b_story.html

http://www.newrepublic.com/article/118443/gop-export-import-bank-bind-could-shut-down-government

http://bizbeatblog.dallasnews.com/2014/06/rick-perry-dont-kill-the-export-import-bank-cites-its-impact-on-jobs.html/

https://newny23rd.com/2014/02/28/export-import-bank-of-the-united-states/

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About whungerford

* Contributor at NewNY23rd.com where we discuss the politics, economics, and events of the New New York 23rd Congressional District (Allegany, Cattaraugus, Chautauqua, Chemung, (Eastern) Ontario, Schuyler, Seneca, Steuben,Tioga, Tompkins, and Yates Counties) Please visit and comment on whatever strikes your fancy.
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4 Responses to Export Import Bank, Part 2

  1. Deb Meeker says:

    In Part 1 of this piece we read that the Import Export Bank describes itself in part: “We also help to level the playing field for U.S. exporters by matching the financing that other governments provide to their exporters.” Could that be the main rub? Does the Import Export Bank operate in a way that also gives US small business a more even playing field against – say, the 10 US corporations that own the bulk of American companies’ goods for export?
    http://mic.com/articles/71255/10-corporations-control-almost-everything-you-buy-this-chart-shows-how

  2. whungerford says:

    Opposition could stem in part from belief in free-market economics or even from the fact that the Bank is a vestige of the New Deal. Critics say that while many small businesses are supported, the bulk of the funds go to giant corporations like Boeing. But keeping the recent NY-23 article, “Koch Brothers in Film and Books,” in mind, I believe that tea party funders have bigger game in sight than the relatively obscure Export Import Bank..

  3. solodm says:

    Here’s a new wrinkle in the attacks on the Export Import Bank.
    This is an email I received from Friends of the Earth:

    “In the last five years, American citizens, through the federal government’s Export-Import Bank, have provided over $2 billion dollars in financing to build and operate several enormous coal power plants around the world. These projects will pollute the air and water, contribute to respiratory and cardiovascular disease, and kick local villagers off their land — not to mention contribute to climate change.
    Luckily, last year, Ex-Im Bank put a stop to this — they committed to stop funding most coal-fired power plants abroad. But now, that policy is under attack.

    A Democratic coal state senator, Joe Manchin from West Virginia, is proposing legislation that would gut enforcement of Ex-Im Bank’s coal financing restrictions. The Senate will consider this bill in the coming days. If it passes, the bill will result in more of your public money spent on dirty, dangerous coal plants.
    Since Ex-Im adopted the coal financing restriction, the U.S. has begun persuading other countries to follow suit — one of the precious few ways in which we’re taking a lead on international climate policy. So if Senator Manchin’s bill passes, it will undermine efforts to curb public financing for coal worldwide.
    Send a message that our tax dollars shouldn’t fund more dirty coal power plants abroad — tell your senators to reject this bill!”
    http://action.foe.org/p/dia/action3/common/public/?action_KEY=16107

  4. Pingback: Tom Reed supports Export-Import Bank for #NY23 | New NY 23rd

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