It’s not every day that the American people score a victory over the global elite, but that’s exactly what happened last week.
The victory came in the form of preventing the ascension of Mark McWatters to the Board of Directors of the Export-Import Bank of the United States, whose nomination Sen. Richard Shelby, R-Ala., has successfully bottled up in the Senate Banking Committee.
Created by executive order during the height of the Great Depression, the Ex-Im Bank has been used as a tool to reward politically connected elites, both in the United States and abroad, for decades.
Here’s how it works: a large corporation pays money to lobbyists and politicians so that Ex-Im will leverage the full faith and credit of American taxpayers to guarantee loans used to finance global transactions.
Because these loans are backed by you, the United States taxpayer, these politically favored global corporations are able to secure below-market interest rates. The difference between the market interest rate the global corporations would have paid to finance their transactions and the below-market interest rate made available by Ex-Im’s guarantees acts as a giant taxpayer subsidy for these global corporations.
The lobbyists and politicians supporting these global corporations will tell you that Ex-Im’s loan guarantees are cost-free programs that support American middle-class jobs.