The Export-Import Bank was established in 1934
for the purpose of creating and sustaining U.S. jobs by financing sales of U.S.
goods to international customers. It is in place to ensure that sales of goods
take place with foreign customers that are weary of the credit risk involved
otherwise. It is a function of our government.
The Export-Import Bank is unfair to airlines though. Foreign
airlines who receive help from our government are in direct competition with
our own airlines and our airlines have to pay full price for their airplanes.
It is unfair to the U.S. airlines and is one of just the many hurdles that the
airlines have to jump in order to make profits and stay in business.
I believe that the Export-Import Bank is a bad deal for the
U.S. economy. It makes it to easy for our country to lose a lot of money if
these risky foreign governments decide to default on their loans. It is also
putting unneeded pressure on the aviation industry. I believe in order to level
the playing field, either we get rid of the Export-Import Bank or offer
subsidies to our airlines as well.
Subjects like this are touchy and I don’t believe there is a
simple solution. I believe it is something that requires constant adjustments
as our economy changes.
I think that the benefit of supporting aviation manufacturers helps the United States as a whole.
ReplyDeleteI disagree that the Ex-Im bank is unfair to U.S. airlines. It does not exist to facilitate funding for them, only for export and import of U.S. goods. A U.S. airline purchasing goods from a U.S. supplier is not part of the export import scheme but a domestic one. Domestic banks are to blame if anyone for not providing low cost funding to U.S. consumers.
ReplyDeleteI was surprised that you disagreed with the Ex-Im bank. You're one of the first I've read that disagrees with it. But I can understand where you are coming from. I agree subsidizing U.S. carriers is only fair to level the field.
ReplyDeleteI could never understand why our government is concerned with everyone else before there own people. Why worry about these other countries making money and booming in sales and profits before your own which has hundreds of millions of dollars in dept.
ReplyDeleteI did not think about the direct competition angle. It helps our manufacturers sell more planes then they would have if foreign companies did not buy them.
ReplyDeleteKyle, because its all about money and you can make so much more overseas as a civilian than you ever could here in the U.S. That money is tax free!!! Ask VP Cheney he was in charge of Halibutron when the war first began. It's a lot of the reason our country is so far in debt today.
ReplyDeleteGetting rid of the bank would be a bad idea, as Trevor said in his blog its a self sufficient part of the economy that helps us greatly. Making sure its fair on the other hand, is something we should work towards.
ReplyDelete