Instead of working to create jobs and help American manufacturers compete in the international market place, short-sighted, bone-headed members of Congress conspired to shut down America's 81-year old American Export Import Bank. Without the financing of last resort, American businesses have lost contracts to foreign competitors. Layoffs are being announced in almost every state in the nation.
Instead of local media calling the members of Congress to task for their direct action against the bank, most are ignoring the story. In Dallas, the DMN did cover the comments of the CEO of GE about their board's decision not to relocate their national headquarters (with about 5000 jobs) to Dallas. He directly cited Jeb Hensarling's assault on the Export/Import Bank. GE decided against investing in a region which elects members to Congress who are directly hostile to the bank which enables them to be competitive. Hensarling's statement on the Export/Import Bank angered C.E.O.s of businesses which relied on the Bank's services.
"This is a small step toward renewing a competitive free-market economy and arresting the rise of the progressive welfare state and the cronyism connected to it. Ex-Im is not only corporate welfare, it is corporate welfare for foreign companies and countries." -Jeb Hensarling Press Release - June 25, 2015).Americans who value their jobs should examine the position on the Export/Import Bank taken by the U.S. Representatives and U.S. Senators elected to Congress from their Districts. Failure to renew the Bank's charter is a direct assault on jobs. It is leading to more American jobs moving off-shore.
The Dallas Morning News failed to mention that Michael Burgess, Kenny Marchant, Louie Gohmert and Ted Poe have worked with Jeb Hensarling for over two years to get the Export/Import Bank shut down. They have lashed out at the bank and the businesses which utilize its services, labeling its services "Corporate Welfare."
Ironically, the Bank does not cost the Taxpayers ONE CENT. All operation costs of the EX/IM Bank are paid by the fees and interest charged to the foreign borrowers who finance the American-made goods and services they import! In fact, in 2014, the EX/IM Bank transferred into the U.S. Treasury over $675 Mil which was profits it made after all their operating expenses were paid.
There is no substance to the claims of Tea Party extremist like Gohmert, Marchant, Burgess, Poe and Hensarling that this is "corporate welfare."
They don't consider services of commercial lenders who finance homes and automobiles "welfare." The borrowers of the Import/Export bank pay back the loans and pay fees and interest. The Ex/Im Bank does not compete with private lenders. It is a lender of last resort. They step in after other lenders refuse to lend.
Granted, some of America's largest corporations use the services of the Export/Import Bank. Boeing, GE, General Dynamics utilize the bank for some of their contracts. The majority of the loans go to small to medium exporter. Even the larger corporation's contracts support small to medium sub-contractors.Helping to level the playing field for American businesses so that they can compete with foreign manufacturers is a legitimate role for our Federal Government. Large and small businesses are employers. Sometimes when a small business fails, hundreds of employees lose their jobs. That hurts the local economy. When a large business loses contracts, thousands of employees lose their jobs and the small to mid-sized businesses which do business with them are frequently also forced to down-size. That hurts the entire region and frequently has a negative ripple-effect that goes across our entire nation.
The Export/Import Bank has one of the lowest default rates of any lending institution in this nation! Renewing the Bank's Charter is a Win/Win for American and for American workers. However, a handful of boneheaded right wing zealots decided to torpedo American jobs by refusing to renew its charter.
Now American workers are losing their jobs. Some companies are turning to other nations to get financing for contracts they have invested a lot into and they will face big losses if they cannot secure. Without financing, buyers cannot purchase from our suppliers. So many are turning to countries such as Canada to provide the financing. These financial agreements usually require that the supplier employ citizens of the country which provides the financing.
In East Texas, Louie Gohmert (R) represents the Texas First District in the U.S. Congress. That district has one of the state's highest unemployment and under employment rates. Gohmert, despite his decade in office, has not helped the region solve its employment problems. He has not worked to help leaders in the region attract new businesses to the region. He has protected the fossil fuel industry by voting for tax breaks and subsidies. He does not see these direct transfers from the budget to his pet industries as "corporate welfare" yet calls the services of the Export Import Bank (which do not transfer any taxpayer money to anyone) "welfare!"
Dr. Shirley McKellar, PhD of Tyler is challenging Gohmert for the US-TX 1 seat in Congress.
The Texas Federal Blue Seed PAC issued this message this week utilizing talking points by McKellar on Gohmert's opposition to the renewal of the charter of the Export/Import Bank.
