Eximbank: Bank of Boeing and big political donors
Supporters of the Export-Import Bank (Eximbank) claim that small, struggling businesses are the greatest beneficiaries of the Eximbank’s programs. Of course, even if that where the case it would in no way justify using taxpayer money to support projects that are unable to obtain funding in the market.
But not only does the claim that Eximbank mainly helps small business fail to justify this program, it is not even true. According to The Biggest Beneficiaries of Ex-Im Bank, by the Mercatus Center’s Veronique de Rugy, Boeing–which is not exactly a struggling small business– was the top recipient of Eximbank aid in Fiscal Year 2013. Boeing received $8.3 billion in loan guarantees and direct loans form Eximbank last year. Other “small businesses” that benefited from Eximbank where General Electric ($2.6 billion), Bechtel ($1.8 billion), and Caterpillar ($1.3 billion).
Another interesting fact is that the second-largest recipient of Eximbank insurance subsides is the Connell Company, whose owners are among the Democratic Party’s largest donors. I am certain that this generosity was in no way motivated by the support Eximbank receives from President Obama and other prominent Democrats.
That is not to say that Eximbank is a complete waste, they do provide an exciting internship program allowing young people to master the important skill of putting government propaganda on Wikipedia.
Campaign for Liberty has recently cosigned a collation letter calling on Congress to shut down Eximbank, and we will continue to support all efforts to shut down this poster child for corporate welfare and crony capitalism.