How Washington Can Help American Workers
Mar 16, 2012Posted by Scott Bates
In the global battle to capture markets and win the jobs of the future, there are some who through their inaction, would unilaterally disarm America.
The Ex-Im Bank is the official export credit agency of the United States and its charter will expire on May 31st if the Bank is not reauthorized. Funding the Bank has available to provide to businesses will expire within months without Congressional action. The nation’s future economic growth, job creation, and innovation are linked to the Bank's success.
Quite simply, the Bank assures that U.S. exporters receive financing that helps level and often uneven playing field in the global marketplace. Without that financing, U.S. businesses will lag behind in foreign markets, meaning fewer exports and fewer jobs for American workers. It means that competitors overseas have an advantage over U.S. businesses at a time when as a nation we are struggling to balance the import-export balance.
Just how much of an impact will be felt by U.S. businesses if Congress does not reauthorize? In FY2011, the Bank provided more than $40 billion to U.S. exporters – that translates into an estimated 290,000 direct and indirect jobs at more than 3,600 U.S. companies. More than 80% of its transactions support U.S. small businesses and fifteen percent of its funding went directly to such businesses. It is no wonder that more than 60 CEOS from some of the largest employers in the U.S., as well as over a dozen associations, have called publicly for Congress to act.
There are efforts on Capitol Hill to extend through 2015 the authority of the bank to provide loans and insurance to finance exports of U.S. products and services and would eventually raise to $140 billion the total amount of loans, guarantees, and insurance that the Bank can have outstanding.
Consideration in the Senate is critical to assuring that U.S. businesses can compete in the global marketplace, a marketplace where foreign governments are aggressively supporting their companies who are often competitors to U.S. based businesses.The views expressed in this blog are those of the authors and do not necessarily represent the views of the Center for National Policy.
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