Perry

Rick Perry Is Right: Kill the Export-Import Bank and Cut Corporate Taxes

Former Texas governor Rick Perry announced his candidacy for the 2016 GOP presidential nomination earlier today. Many recall his 2012 bid, which came to a rather spectacular end when Gov. Perry, on live television, forgot the name of the third federal agency he promised to eliminate if elected president. However, in a recent WSJ op-ed, Gov. Perry redeemed himself by offering a real candidate for elimination: the Export-Import Bank.

The Export-Import Bank (Ex-Im) provides financing and loan guarantees at below-market rates to foreign purchasers looking to buy products from American exporters. For example, if Emirates Air wants to buy planes from Boeing, Ex-Im can provide a loan guarantee, reducing the interest rate Emirates will pay, and thus incentivizing Emirates to buy from Boeing rather than Airbus.

Ex-Im’s supporters claim that these subsidies create jobs and finance domestic economic growth. But, they fail to consider the ensuing downstream effects, which Bastiat termed “ce qu’on ne voit pas”–that which is unseen. As the Cato scholar Daniel Ikenson makes clear, every dollar Ex-Im provides to subsidize foreign purchasers of U.S.-produced products discriminates against U.S. consumers of the same products. For example, when Emirates receives a subsidy for planes because it is a foreign company, Emirates gets a leg up on Delta.

Nat Hentoff on Perry, Obama

There has been increasing attention this week on Texas governor and Republican presidential candidate Rick Perry, as well as his book Fed Up! and his record in Texas.  With respect to criminal justice, most of the talk concerns the number of executions on Perry’s watch. 

Subscribe to RSS - Perry