US Export-Import Bank is a job creator

An objective review of the U.S. Export-Import Bank would have to conclude that its operation has been an enormous success. Since its establishment 81 years ago, the bank has enabled U.S. companies to export goods and services around the world at no cost to the U.S. government. In fact, EXIM Bank earned a profit of $674.7 million in 2014.

That is precisely what offends the extreme conservatives. They believe it is philosophically “unpure” for the government to be in business. They believe the EXIM Bank is the first step on the road to socialism, so they oppose the required congressional support for the bank’s continuance.

Large companies like GE, Boeing and Caterpillar will continue to thrive in world trade without the assistance of the EXIM Bank, but small companies will be affected adversely. Last year the bank financed $20.5 billion of the $27.5 billion in U.S. exports. However, 90 percent of the authorizations were for small business loans that amounted to only 25 percent of the dollar amount of bank authorizations. Opposition to renewal clearly places small businesses at risk.

Once again the conservatives have demonstrated a willingness to sacrifice the interests of workers and small businessmen in favor of a questionable philosophical theory. Their allegiance to archaic views is much easier when the oligarchs are not harmed.

Fortunately, more liberal politicians have come forward to extend the life of the EXIM Bank, but they require special efforts to generate the growth of foreign trade by small businesses.