You wouldn’t go there to make an ATM withdrawal but the Export Import Bank is at the center of a fierce debate dividing tea party conservatives and more moderate Republicans. The bank removed officials last year over allegations they received bribes in order to finance contracts with federal money. That’s partly why freshman Republicans like South Florida’s Carlos Curbelo are demanding reforms.
“Meaningful reforms, so not like last time where the bank essentially ignored a lot of what Congress demanded. Cause there has been a lot of cronyism and some corruption associated with the bank. So I think I can support a reformed export import bank, we’ll see when it comes over from the Senate what it looks like.” Curbello says.
The bank claims it supports more than nine hundred businesses across Florida that export around nine billion dollars in goods. That’s why many businesses were up in arms that Republican leaders allowed the bank’s charter to expire at the beginning of the month. South Florida Democratic Congresswoman Debbie Wasserman-Schultz accuses G-O-P leaders of playing with fire.
“I just think it’s unbelievably irresponsible. This is an agency that has literally created tens of thousands of jobs, created more opportunities for small businesses to expand. I have been able to feature small business in my own district, who thanks to the XM bank, were able to finally reach out and sell their products internationally.” Wasserman-Schultz says.
In most regions of the country the debate is pitting more moderate Republicans against tea party Republicans. But in Florida it’s pitting Democrats against Democrats. The state’s two contenders in the Senate Democratic primary are divided on the issue. Central Florida Congressman Alan Grayson derides the bank.
“Well it’s the clearest case of corporate welfare you’re going to find anywhere in the U.S. budget. We are literally paying foreigners to compete against U.S. workers and take away our jobs so good riddance.” Grayson says.
Grayson goes on to say he could support a completely revamped form of the bank, but in its current form he says it’s a nonstarter.
“Actually what it comes down to is if we take the same program and apply those loan subsidies to U.S. buyers, who then would use that to compete vigorously in the U.S. market. That would start to make sense; it would still be corporate welfare but it would start to make sense.” Grayson says.
Grayson also say U-S firms are actually the big losers as the bank stands now.
“Here what we’re doing is basically saying to an airline like China Southern, we the tax payers will actually subsidize your purchase of airplanes so that you can then turn around and compete against United Airlines, Delta Airlines, American Airlines, which are not eligible for the same subsidizes from U.S. taxpayers; it’s completely nonsensical.” Grayson says.
But Grayson’s opponent in the Democratic Senate primary sees the Export-Import Bank quite differently. South Florida Congressman Patrick Murphy says killing the bank will give other nations a leg up in the international marketplace.
“Every other country out there is trying to develop their own Export-Import Bank or they’re growing their own bank. In fact, there’s many countries that have the equivalent of an Export-Import Bank that is much bigger than ours so their manufacturing sector is growing while we, unfortunately in this institution for partisan reasons, are handicapping our own manufactures. That makes absolutely no sense.” Murphy says.
And with the bank delivering money back to the Treasury each year, Murphy says the bank is a win-win.
“Look the Export-Import Bank is a deficit cutting job creating institution. You know it has been re-authorized 16 times in a row by Republicans by Democrats alike. This does nothing but help small businesses throughout our country.” Murphy says.
Supporters say the temporary expiration of the bank isn’t the end of the world because the bank can still make the loans it had already approved, but Murphy says any extended expiration could have a negative impact on Florida’s economy.
“I am very very hopeful that this comes back. This is 50,000 jobs in Florida. This is over a million jobs throughout the country. You’re talking about 3,000 business you know throughout the country that are impacted and helped by the Export-Import Bank.” Murphy says.
