In Our View: Congress, Save Ex-Im Bank

With Congress returning to work after a five-week recess, it is time for Republicans to stop bickering among themselves and reauthorize the Export-Import Bank.

The bank, which has been around since the 1930s, provides loans and loan guarantees to help foreign entities purchase American products, and it has worked well. During the Great Recession, when traditional banks were particularly reluctant to provide loans to grease the wheels for exports, the bank was essential for American companies. And the Ex-Im Bank turns a profit. While critics have valid questions about the bank’s accountability, reports show that it returned $1 billion to the U.S. Treasury last year and $2 billion over the past five years.

Still, after decades of receiving bipartisan support in Congress, the Ex-Im Bank suddenly has landed in the cross hairs of the Tea Party, whose members allege that it amounts to “crony capitalism” and allows the government to choose winners and losers among businesses. There’s no doubt that the Ex-Im Bank benefits some companies more than others, and that Boeing is its biggest beneficiary. But data also show that 90 percent of loans benefit small U.S. companies, assisting them in establishing a foothold in a competitive world market.

All of which suggests that opposition to the bank’s reauthorization is built upon a foundation of misguided ideology. While complaining about the Ex-Im Bank might make for sound bites that pander to conservatives, in the end it amounts to legislative negligence.

As Rep. Chris Collins, R-New York, wrote in an opinion piece for USA Today, “These points often neglect the fact that we do not live in a world where other countries abide by the same free-market principles. Without Ex-Im, exporters in the U.S. would be severely disadvantaged internationally.” Collins also wrote: “It is one of the few government programs that actually help small businesses accomplish two critical objectives — export American-made products overseas and create good, sustainable jobs in America.”

The bank is credited with supporting 200,000 jobs in the United States, including 85,000 in Washington state. Nearly all of the state’s congressional delegation has come out in support of the Export-Import Bank, with only Rep. Cathy McMorris Rodgers, R-Spokane, failing to jump on board. That highlights the absurd division between Tea Party Republicans and those they view as the being part of the party establishment; McMorris Rodgers’ obstinance is a case of her giving more weight to her position of power in the House than to the needs of her own state.

The Heritage Foundation, the Club for Growth, and other small-government advocates have targeted the Export-Import Bank as a symbol of big government, but their position doesn’t hold up to scrutiny. The bank helps U.S. companies big and small compete on the world stage and doesn’t cost taxpayers anything. Only in a mind driven by ideology rather than logic could that be viewed as a negative.

All of which comes to a head as Congress returns to Washington, D.C. The Export-Import Bank’s charter expires Sept. 30, and without reauthorization it will close its doors. The most likely scenario is one that provides a temporary fix and extends the bank for a short time — in other words, creating only minor waves prior to the midterm elections. Instead, members of Congress should heed the words of Rep. Collins: “For once, they can stop simply talking about creating jobs, and do something that actually creates jobs.”