Club for Growth opposes the nominations of Spencer Baucus III, Kimberly Reed, and Judith Pryor to be Members of the Board of Directors of the Export-Import Bank and urges all Senators to vote NO on them. A vote on each of these nominations is expected soon in the Senate. The results of each of these votes will be included in the Club for Growth Foundation’s 2019 Congressional Scorecard.
The Export-Import Bank is a prime example of corporate welfare. It finances loans to major corporations that could easily obtain financing in the private market.
The Export-Import Bank has operated without a quorum for over 1,000 days and therefore has been prohibited from financing loans in excess of $10,000,000. Five years ago, the Export-Import Bank’s supporters predicted the inability to finance large loans to major corporations through the Export-Import Bank would cause disruptions in productivity for major corporations like Boeing, General Electric and Caterpillar due to a lack of available private financing. They also warned that without the Export-Import Bank’s financing, these corporations could endure corporate catastrophe in the financial markets for investors, causing major layoffs in the workforce and setting up a government crisis for policymakers to bail out too-big-to-fail corporations.
The actual result was nowhere close. In fact, the major corporations that previously obtained financing from the Export-Import Bank have continued to find financing through the private market. They have not lost a competitive edge in the global markets simply because they’re not financing on the backs of the U.S. taxpayer.
If a quorum is filled on the Board of Directors of the Export-Import Bank, the Bank will be permitted to make those large loans putting the U.S. taxpayer at risk. Therefore, Club for Growth opposes the nominations and continues to oppose the reauthorization of the Export-Import Bank’s charter.
Club for Growth Foundation’s Congressional Scorecard for the 116th Congress provides a comprehensive rating of how well or how poorly each member of Congress supports pro-growth, free-market policies and will be distributed to the public.