Congressional Republicans Kill More Jobs and Business

Written by SK Ashby

Congressional Republican opposition to the Export-Import Bank continues to take a toll as General Electric (GE) ships more jobs overseas where credit is actually available.

GE said Tuesday it had signed an agreement for a line of credit for certain power projects from France’s export credit agency, Compagnie Française d’Assurance pour le Commerce Extérieur, or Coface, which would result in 400 jobs moving to Europe, primarily from facilities in New York, Texas, South Carolina and Maine. It said another 100 jobs would be moved next year from a facility outside Houston to Hungary and China to access export credit for customers of gas turbines used in aviation.

Executives say the company is bidding on $11 billion worth of projects, mostly in developing nations, and that bids won’t be entertained if they aren’t sponsored by an export credit agency.

The Export-Import Bank provides credit to foreign companies who wish to purchase American exports. Without these lines of credit, the exports will not happen. It's not as if the Export-Import Bank services customers who could find financing in the private sector. The bank fills an important niche and provides financing to customers who otherwise wouldn't qualify.

Obviously, GE does not want to lose a bidding war on $11 billion worth of projects so, to that end, they will export from other nations where financing is actually available.

Republicans have opposed the reauthorization of the bank because, from their point of view, it's a taxpayer funded, big government boondoggle. The bank is not funded by taxpayers, however, it's funded by the interest payments and fees it collects.

The Republican party has positioned itself against the bank and most of the business community in some kind of fake populist movement that doesn't really benefit anyone. It doesn't benefit corporations or labor. They aren't helping anyone. It's just stupid.