June 4, 2014
Many of the claims made to support the Export-Import Bank, which subsidizes big businesses and foreign governments, are “groundless,” Heritage Foundation economist Salim Furth explains in the Wall Street Journal:
A sense of fairness and knowledge of economics teach me to oppose subsidies by default. In this case, the recipients of the subsidy are hoping to persuade Congress to make an exception from fairness and logic on empirical grounds. But the empirical claims they make–that Ex-Im supports small business and that Ex-Im’s subsidies create jobs–are groundless.
Heritage’s Diane Katz points out that while trade benefits the economy, the Ex-Im Bank’s subsidies are costing jobs.
Do you think Congress should reauthorize the Export-Import Bank?