Charles Lane’s Feb. 6 commentary criticizing Boeing’s use of the Ex-Im Bank to help its customer base purchase its products conveniently leaves out several important facts which, when known, provide a much clearer picture of the subject.
He incorrectly casts the use of the Ex-Im Bank as a free handout of huge amounts of taxpayer money to corporations. It is not.
The Ex-Im Bank provides guaranteed loans to customers of U.S. corporations who buy products made here and exported to other countries.
We are not the only country that does this. Countries from Canada to China have their own export credit agencies. Based on their GDP, France and Germany provided two and a half times more financing than the U.S.; China and India, three times more; and Korea, 10 times more.
The default rate of the Ex-Im Bank as of 2018 was 0.439 percent. This is well below default rates of commercial banks. As for the mistaken concept that loans provided by the Ex-Im were a net drain on taxpayer money, that idea was debunked by the fact that, in recent years, the Ex-Im Bank returned $1.1 billion to the U.S. Treasury, which is hardly a losing proposition.
Although it may be trendy to jump on the foolish anti-capitalism bandwagon, the next time you’re in North Charleston, take a look at the Boeing plant. Those are thousands of your friends, family and neighbors at work, and the Ex-Im Bank helps make this possible.
West Coleman Boulevard