Don’t Look To The Export-Import Bank To Create Jobs
Last week President Trump took a detour on his way to a weekend rally in Florida stopping at a Boeing plant in South Carolina. Trump toured one of the airplane manufacturer’s facilities and doubled down on a key campaign promise reiterating his commitment to “fight for every last American job.” Before the event, media reports suggested that President Trump would lend support, in the name of American jobs, to the Export-Import Bank (Ex-Im) — whose largest beneficiary is none other than Boeing.
Conservatives have fought for years to end the the Ex-Im bank. A quintessential example of corporate welfare, Ex-Im subsidizes loans to foreign companies to buy products made in America. Short one member on its Board of Directors, the bank currently can’t approve deals over $10 million, severely limiting its ability to function.
A number of companies who benefit from the bank want to fully revive Ex-Im and restore their crony cash flow. These companies include Boeing, General Electric, and Caterpillar. While these industry giants have the capital, resources, and private export financing to create jobs on their own, but they have what small businesses don’t, beltway lobbyists to advocate for subsidies. The Heritage Foundation explains that Ex-Im doesn’t create jobs, it merely “redistributes employment from unsubsidized firms to subsidized ones.” In other words, there is no evidence to suggest export subsidies actually create jobs in America.
President Trump can follow through on his mandate to create jobs and provide relief for American families by focusing on policies that make health care more affordable, regulatory burdens lighter, and taxation more competitive globally. Those reforms will work for the people of this nation, not well-connected companies and their army of lobbyists. Representative Jim Jordan (OH-R) said it perfectly: “I share Donald Trump‘s strong commitment to bringing jobs back to this country of ours, but I just don’t think Export-Import Bank is the way to go.”