The U.S. is slipping down an unsustainable fiscal path at a much faster rate than before. This unforeseen acceleration in the public debt is important because high levels of debt can have a negative impact on the economy.
The Ex-Im Bank’s facade of boosting exports and creating jobs is not well supported by its own data. The actual effect of the bank’s activity is the creation of perverse incentives, moral hazards, and inefficient outcomes that has become a fund for corporate welfare. It is worth questioning whether the United States, with mounting debt problems and the possible expiration of the Ex-Im Bank’s reauthorization, needs yet another agency to subsidize companies with taxpayers picking up the tab.
Small Business Administration (SBA) advocates routinely argue that the agency is economical. With the exception of the past few years, budget requests for the SBA have been consistently lower than $1 billion. Yet budget requests reveal much about the final cost of a program.