Ken Blackwell

Ex-Im bank often funds the purchase of airplanes by foreign carriers which compete with American firms. A vast majority of its efforts are with airplane manufacturers such as Boeing, which according to Timothy Carney of The Washington Examiner, shockingly accounted for 90% of Ex-Im’s loan guarantees in 2009. The unfair competition, while good for Boeing, has been bad for airlines such as Delta, which was forced to stop a popular international route because it could not compete with a foreign airliner receiving Ex-Im subsidies.

It is a myth that government must run a bank to make up for a supposed market failure. If a company cannot find private funding sources, that should be a giant red flag as to why taxpayers should not be handing them money. And new, unconventional ways for risky ventures to raise capital, such as crowdfunding and micro-investing, are far more useful than anything government could develop.

Investment gimmicks subject to endless political pressure by central-planners are dubious and inherently inefficient ways to invest money. The unintended consequences of government-backed loans have been disastrous and continue to encourage companies to lobby Congress for special perks and privileges at your expense. This is a form of European-style socialism, and it is time to stop repeating failed policies.

Fiscal conservatives in Congress must make the Ex-Im bank an “ex-bank.”


Ken Blackwell

Ken Blackwell, a contributing editor at Townhall.com, is a senior fellow at the Family Research Council and the American Civil Rights Union and is on the board of the Becket Fund for Religious Liberty. He is the co-author of the bestseller The Blueprint: Obama’s Plan to Subvert the Constitution and Build an Imperial Presidency, on sale in bookstores everywhere..
 
TOWNHALL DAILY: Be the first to read Ken Blackwell's column. Sign up today and receive Townhall.com daily lineup delivered each morning to your inbox.

Due to the overwhelming enthusiasm of our readers it has become necessary to transfer our commenting system to a more scalable system in order handle the content.