Monday, April 30, 2012

Export-Import Bank. Crony Capitalism That Kills Free Enterprise

from essay by Chris Chocola - We have always been a nation of free enterprise. It has set us apart from most others and allowed us to lead the world in innovation and entrepreneurialism. But today, those underpinnings of our success are under threat. Government has become a behemoth that is overtaking industries and distorting markets in such a way that competition and self-reliance as we know it are barely recognizable.

The reauthorization of the Export-Import Bank is a case study in Washington bureaucrats picking winners and losers and interfering with the free market...maybe the most egregious example of how dysfunctional and misguided the Ex-Im Bank's actions really are is present in the airline industry. The bank provides financing to foreign airlines that in turn purchase American aircraft, allowing them to compete against U.S.-based carriers. These foreign companies use our subsidy to offer lower prices since American companies cannot qualify for this corporate welfare, and they, in turn, lose business.

When people talk about crony capitalism, this is an example in its purest form. Read full article here.

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