Date of Award
Economics and Finance
The Ex-Im Bank is the official export credit agency of the United States. The Bank was established in 1934 to aid a depressed economy and foster global trade. Ex-Im was mandated to improve economic conditions and international trade by providing financial assistance where the private sector fell through, while not competing against private firms. The bank has four main tools to perform its responsibilities - direct loans, loan guarantees, working capital financing, and credit-export insurance.
The Ex-Im Bank has enjoyed a long history of strong bipartisan support. Opposition surfaced in the late 2000's leading to an Ex-Im temporary shutdown. The bank used the FAST Act as a vehicle for a four-year reauthorization in December 2015. Ex-lm's continuation is still highly debated today.
Proponents of the Ex-Im Bank commonly appeal to these arguments: it supports domestic jobs; supports small business; levels the playing field; and intervenes when the market fails. Opponents of the bank suggest Ex-Im is a relic of the past; a corrupt bureaucracy that engages in corporate welfare and crony capitalism; reduces economic efficiency; and crowds out the private financial market.
After examining the data, it has become apparent the Ex-Im Bank is an unneeded government tool with redundant services that should be wound down and concluded. Modern global trade liberalization has rendered the bank obsolete. The vast majority of Ex-Im benefits aid corporate behemoths, and it does not provide anything the financial sector cannot.
Johnson, Bo A., "A Look at the Controversies of the United States Export-Import Bank" (2016). Undergraduate Honors Capstone Projects. 537.
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