Congress will soon debate the fate of the U.S. Export–Import Bank (Ex–Im), which doles out financing to favored corporations and credit to foreign governments. Proponents claim that such taxpayer bankrolling creates jobs and fills “gaps” in private financing. In fact, the bank is a conduit for corporate welfare beset by unreliable risk management, inefficiency, and cronyism.
Terminating the bank’s charter should be an easy call for lawmakers. Even Barack Obama, as a presidential candidate, endorsed its end. With strong growth in privately financed exports, there is no justification for maintaining this Depression-era relic.