Now that the Export-Import Bank’s charter has expired, it’s time to examine other programs that should follow in Ex-Im’s footsteps. The Overseas Private Investment Corporation (OPIC), a federal agency that subsidizes U.S.-owned overseas businesses with taxpayer-backed financing, is ripe for termination when its charter expires on September 30.
Immediately focusing on a new target on the heels of Ex-Im’s expiration is important. As Heritage Foundation’s analyst Diane Katz expressed to me in an email, “We should certainly celebrate the success of blocking Ex-Im from doling out yet more subsidies, but the victory may be temporary and is certainly incomplete. Ex-Im is only one of dozens of corporate welfare programs, such as OPIC, that must be ended.”
In the Washington Examiner, Timothy Carney explains what OPIC does and why it should go. “Want to set up a factory in a different country? OPIC can make it cheaper for you. For instance, a Brazilian granite business gets an OPIC subsidy, even though that hurts its U.S. competitors.”
The parallels between OPIC and Ex-Im are chilling: two government agencies that focus on artificially propping up U.S. companies in the name of economic growth and job creation by providing cheap financing to companies that could find capital on their own. In the process, both agencies transfer large risk to taxpayers.
Full post by Veronique de Rugy @ Reason http://reason.com/archives/2015/07/02/beyond-the-export-import-bank-more-crony#.flnehs:UOTr