“KICK CRONY CAPITALISTS OFF THE DOLE …”
|| By RON PAUL || This month Congress will consider whether to renew the charter of the Export-Import Bank (Ex-Im Bank). Ex-Im Bank is a New Deal-era federal program that uses taxpayer funds to subsidize the exports of American businesses. Foreign businesses, including state-owned corporations, also benefit from Ex-Im Bank. One country that has benefited from $1.5 billion of Ex-Im Bank loans is Russia. Venezuela, Pakistan, and China have also benefited from Ex-Im Bank loans.
With Ex-Im Bank’s track record of supporting countries that supposedly represent a threat to the US, one might expect neoconservatives, hawkish liberals, and other supporters of foreign intervention to be leading the effort to kill Ex-Im Bank. Yet, in an act of hypocrisy remarkable even by DC standards, many hawkish politicians, journalists, and foreign policy experts oppose ending Ex-Im Bank.
This seeming contradiction may be explained by the fact that Ex-Im Bank’s primary beneficiaries include some of America’s biggest and most politically powerful corporations. Many of Ex-Im Bank’s beneficiaries are also part of the industrial half of the military-industrial complex. These corporations are also major funders of think tanks and publications promoting an interventionist foreign policy.
Ex-Im Bank apologists claim that the bank primarily benefits small business. A look at the facts tells a different story. For example, in fiscal year 2014, 70 percent of the loans guaranteed by Ex-Im Bank’s largest program went to Caterpillar, which is hardly a small business.
Boeing, which is also no one’s idea of a small business, is the leading recipient of Ex-Im Bank aid. In fiscal year 2014 alone, Ex-Im Bank devoted 40 percent of its budget – $8.1 billion – to projects aiding Boeing. No wonder Ex-Im Bank is often called “Boeing’s bank.”
Taking money from working Americans, small businesses, and entrepreneurs to subsidize the exports of large corporations is the most indefensible form of redistribution. Yet many who criticize welfare for the poor on moral and constitutional grounds do not raise any objections to welfare for the rich.
Ex-Im Bank’s supporters claim that ending Ex-Im Bank would deprive Americans of all the jobs and economic growth created by the recipients of Ex-Im Bank aid. This claim is a version of the economic fallacy of that which is not seen. The products exported and the people employed by businesses benefiting from Ex-Im Bank are visible to all. But what is not seen are the products that would have been manufactured, the businesses that would have been started, and the jobs that would have been created had the funds given to Ex-Im Bank been left in the hands of consumers.
Another flawed justification for Ex-Im Bank is that it funds projects that could not attract private sector funding. This is true, but it is actually an argument for shutting down Ex-Im Bank. By funding projects that cannot obtain funding from private investors, Ex-Im Bank causes an inefficient allocation of scarce resources. These inefficiencies distort the market and reduce the average American’s standard of living.
Some Ex-Im Bank supporters claim that Ex-Im Bank promotes free trade. Like all other defenses of Ex-Im Bank, this claim is rooted in economic fallacy. True free trade involves the peaceful, voluntary exchange of goods across borders – not forcing taxpayers to subsidize the exports of politically powerful companies.
Ex-Im Bank distorts the market and reduces the average American’s standard of living in order to increase the power of government and enrich politically powerful corporations. Congress should resist pressure from the crony capitalist lobby and allow Ex-Im Bank’s charter to expire at the end of the month. Shutting down Ex-Im Bank would improve our economy and benefit most Americans. It is time to kick Boeing and all other corporate welfare queens off the dole.
Ron Paul is a former U.S. Congressman from Texas and the leader of the pro-liberty, pro-free market movement in the United States. His weekly column – reprinted with permission – can be found here.
But the 109,631,000 living in households taking federal welfare benefits as of the end of 2012, according to the Census Bureau, equaled 35.4 percent of all 309,467,000 people living in the United States at that time.Aug 20, 2014
How about ending “welfare for the 35.4%”-then we will work on the “1%”. Ron Paul is insane.
Ron supports ending most or all government welfare schemes. He’s mentioning this one because there is an ongoing debate and a vote is scheduled on it soon. Sure, the headline is provocative. So what? Think a little harder before deeming someone insane.
On the 9/11 Truther Conspiracy
CALLER: I want a complete, impartial, and totally independent investigation of the events of September 11, 2001. I’m tired of this bogus garbage about terrorism. Ask Michael Meacher about how he feels about this bogus war on terrorism. Can you comment on that please?
HON. DR. RON PAUL: Well, that would be nice to have. Unfortunately, we don’t have that in place. It will be a little bit better now with the Democrats now in charge of oversight. But you know, for top level policy there’s not a whole lot of difference between the two policies so a real investigation isn’t going to happen. But I think we have to keep pushing for it. And like you and others, we see the investigations that have been done so far as more or less cover-up and no real explanation of what went on.
What’s insane about his response?
In the context that there are 28 pages of “classified” information from the 9/11 report, rumor of which is classified because of a Saudi government role in 9/11, doesn’t it seem prescient?
I mean, why does any part of the 9/11 have to be classified if there is no “cover up”?
Who did it? Billy Graham or Elvis? Oh my!!!!
In honor of Dan Rather…”Kenneth, what is the frequency?” :)
Why are 28 pages classified?
Independent investigations are insane? Believing that the government would never lie or cover up wrongdoing is far more crazy.
Three key Patriot Act provisions just expired because of his insane son, Rand. The apple sure didn’t fall far from the tree.
Good Morning Filp, Pogo, Guest, fc, Kev,etc etc etc.
And a hardy Fuck You to You for the day.
Oh Haley my Allah, please smite Twirls with quadrupled taxes for their blasphemy against thee! We are not worthy to lick your hooker boots! LMAO!!! LMAO!!!
I wouldn’t worry yourself over it. The various tentacles of our government don’t obey the law anyway. Why do you think Guantanamo exists and secret rendition takes place to countries not under US law?
No one in any of these secret agencies give a shit what law is passed or not for the most part. They are relatively minor speed bumps to their operation.
Would you suggest we turn Guantanamo back over to Cuba like obama is apparently considering?
Well, the US government still recognizes it as Cuba’s territory.
So why not?
If the US can’t follow its own laws in regard to prisoner treatment and can’t negotiate in good faith in regard to return of others properties what message do you think that sends to the rest of the world?
How can the US government claim to be for property rights yet refuse to return someone else’s property?
Ron Paul, UNFAIR. IMBALANCED.
Awkward Truth 4
In January 2015, SC seasonally adjusted employment rose by 10,610. That is the highest monthly rise ever recorded since it began in 1976. The previous high was 6,722 new jobs in October 2006.
I’ve got a serious question for you:
Were you Grand Tango?
Whoever Pogo or systwistsuglydog is, sound a lot like GT.
1.Impossible.GT’s brilliance on ALL topics political are unmatched on Fits.
2.That is all the training you got out of Quantico? Pogo or systwistsuglydog sounds like GT? Wholly shit.I sure hope you weren’t water boarding terrorists before this latest demotion! :)
They say imitation is the most sincere form of flattery. I’m flattered, but I wonder what it’s like to walk in someone else’s shadow, so I thought I’d ask an expert on the topic. How cold is it there?
Satan called said to tell you he needs you to come back home.
Your wrong. Satan is a deceiver. He hates the truth as apparently you do.
So you are the Twirls, that some have mistaken me for? Interesting, I didn’t know you existed til now
I’m just the local agent provocateur. Pay me no never mind.
You do seem witty, so I’m not disappointed they confused us – ha!
THIS GUY PAUL IS A MORON.
THE IM-EX BANK ACTUALLY COSTS THE TAXPAYERS ZERO.
IT ACTUALLY MADE OVER A BILLION DOLLARS PROFIT THAT WAS RETURNED TO THE TREASURY LAST YEAR.
NAME ANOTHER GOVERNMENT AGENCY THAT ACTUALLY MAKES $$$$$$$$.
The IM-EX bank was originally created to subsidize Stalin-
Aside from it’s dubious beginning, it’s P&L statement is largely a matter of fiction.
Even if the moral hazard surrounding taxpayers being forced to subsidize corporate loans doesn’t bother you in addition to the RISK involved, the accounting should:
$83 / h0ur @mk25