“As two former chief economists of the U.S. Chamber, we know whereof we speak when we point out that it’s the same old battle between the chamber’s large-members’ crony-capitalist cabal versus its small-business and entrepreneurial members and free marketeers inside the chamber. We were two of the free marketeers who fought that fight from the inside…

…during the Reagan and George H.W. Bush administrations with considerable success. But today the crony capitalists have the upper hand, both inside government and at the chamber, and business and the people are the worse for it.”, Richard W. Rahn and Lawrence Hunter, Washington D.C., The Wall Street Journal: Letters to the Editor, July 28, 2015

Opinion

Ex-Im Bank: Watch Out for a Trap

If Republicans and Democrats join together to resurrect the Export-Import Bank, swing voters could conclude that the GOP is equally as wasteful as Democrats.

Your July 24 editorial “Raising Ex-Im From the Dead” makes a compelling case to let the deceased, New Deal, credit-subsidy program rest in ignominy, to which we would attach an appropriate epitaph: Gone and Forgotten—Good Riddance to Bad Economics. Beyond that, we would add only a coda to your assessment of the politics behind the conniving effort in Congress to revive the rotting corpse. As you note, the political muscle behind House Speaker John Boehner’s untoward resurrection effort is the U.S. Chamber of Commerce, which at the behest of a few of its members is pressuring Congress to revive the bank. As two former chief economists of the U.S. Chamber, we know whereof we speak when we point out that it’s the same old battle between the chamber’s large-members’ crony-capitalist cabal versus its small-business and entrepreneurial members and free marketeers inside the chamber. We were two of the free marketeers who fought that fight from the inside during the Reagan and George H.W. Bush administrations with considerable success. But today the crony capitalists have the upper hand, both inside government and at the chamber, and business and the people are the worse for it.

Richard W. Rahn

Lawrence Hunter

Washington

It is possible that the GOP might be walking into a political trap on this issue that will have repercussions in 2016.

One of the major issues the GOP has in its favor is reducing the horrendous debt that the Obama administration has accumulated in the past seven years. If Republicans and Democrats join together to resurrect the Export-Import Bank, swing voters could conclude that the GOP is equally as wasteful as Democrats.

Even worse, it gives Donald Trump a good reason to run as an Independent, arguing that only he is capable of cleaning up the Republican Party, as well as the Democratic Party.

David Frazer

Scottsdale, Ariz.

What your editorial and other pieces fail to acknowledge are the 89 other countries around the globe that currently offer low-cost guarantees similar to Ex-Im. These countries will continue to offer these guarantees regardless of our decision. Eliminating the Ex-Im Bank would mean the U.S. would be at a competitive disadvantage against the rest of the globe. Perhaps Boeing could finance its sales privately, but not at the same cost of the EU’s guarantees of Airbus; therefore Boeing loses. So long as the rest of the world is offering said government guarantees, the U.S. would be naive to take such a moral high ground on its own and sacrifice so many U.S. jobs unilaterally.

John Gruber

River Forest, Ill.

Posted on July 28, 2015, in Postings. Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: