In politics, as the old saying goes, there are no permanent friends or permanent enemies \u2013 there are only permanent interests. Few policy debates prove that truism as well as the one now brewing over the Export-Import Bank \u2013 a government agency providing taxpayer subsidized loans to multinational corporations.<\/p>\n
This tale starts 15 years ago when my old boss, U.S. Rep. Bernie Sanders, I-VT, was trying to construct a left-right coalition to reform the bank. While a few libertarians were willing to voice free-market criticism of the bank, the impetus for reform was primarily among Democrats and the left. Indeed, Sanders\u2019 failed 2002 amendment proposing to restrict the bank\u2019s subsidies garnered only 22 Republican votes but had 111 Democratic backers \u2013 mostly progressive legislators who, in the words of Sanders, saw the Ex-Im Bank program as \u201cone of the most egregious forms of corporate welfare.\u201d<\/p>\n
As Salon\u2019s David Dayen reports, liberals in subsequent years \u201chighlighted how Enron, the failed energy giant, benefited from $675 million in Ex-Im loans\u201d; how \u201cEx-Im gave an $18 million loan to a Chinese steel mill, which was later on accused of dumping steel into U.S. markets and hurting U.S. workers\u201d and how, \u201cEx-Im loan guarantees helped build one of the largest coal plants in the world.\u201d By 2008, the progressive-themed criticism of the bank had become so central to Democrats\u2019 agenda that Barack Obama used a presidential campaign speech in 2008 to lambast the bank as \u201clittle more than a fund for corporate welfare.\u201d<\/p>\n
Fast forward to the last few years. In 2012, Democrats rammed a bill reauthorizing the bank through the Senate, and Obama held a public ceremony to sign the reauthorization bill into law. At the same time, Republicans provided most of the congressional votes against the bank. And now, in the last few weeks, the GOP\u2019s new House majority leader is threatening to block the next authorization bill and thus completely shut the bank down.<\/p>\n