The battle over the future of the U.S. Export-Import Bank (Ex-Im) has been a humbling experience for the Tea Party.
Jim Lobe, last updated: May 16, 2012
Inter Press Service
For leaders of the right-wing populist "Tea Party" who have bragged about their growing influence – if not domination – of the Republican Party, the past week's battle over the future of the U.S. Export-Import Bank (Ex-Im) has been a humbling experience.
It's also been a reminder of the power enjoyed by Big Business, the corporate empires with globe-straddling interests, in both major parties in Congress.
While bipartisanship is an increasingly rare commodity in Washington these days, the interests of U.S.-based multinational corporations is something both Democrats and Republicans can agree on.
Such giants as the Boeing Company, backed by the U.S. Chamber of Commerce (USCC) and the National Association of Manufacturers (NAM), not only coaxed a three-year extension for Ex-Im operations out of Congress supposedly preoccupied with reducing the federal deficit, they also got an increase in lending authority from 100 billion dollars last year to 140 billion dollars by 2014.
"The three-year extension and healthy increase in lending level sends the right message to our foreign competitors," said John Hardy, the president of the Coalition for Employment Through Exports (CEE), one of an alphabet soup of business associations that lobbied for the extension.
"American companies that export have the support of their government to level the playing field and help make those sales," he added.
Created in the early days of Franklin Roosevelt's "New Deal", Ex-Im has survived and prospered under Republican and Democratic administrations alike, and has been headed by individuals from across the political spectrum (see, for instance, Right Web Profile: Phillip Merrill). This despite occasional complaints on the right side of the political spectrum that its operations amounted to government interference in the free market, and, on the left, that it amounted to "corporate welfare", a phrase ironically adopted by then- Sen. Barack Obama to describe the bank when he was running for president in 2008.
As originally conceived, Ex-Im's mission has been to create jobs at home by financing sales of U.S. exports to buyers overseas. Over the years, it has become a model for similar institutions, called export credit agencies (ECAs), established by other export-hungry industrialised countries.
In recent decades, its single biggest beneficiary by far has been Boeing, the giant Chicago-based aerospace firm, which has long depended on Ex-Im's support in its competition with Europe's Aerobus Industries. Last year, the bank provided 11 billion dollars in financing for Boeing's foreign customers – nearly a third of its total financing of nearly 33 billion dollars in deals in 2011.
While much of the bank's opposition in the past has come from Democrats who have described it as a corporate giveaway, not a single Democratic lawmaker in either house opposed its extension this year. This is in major part because it was successfully depicted as a key jobs programme at a time when official unemployment exceeds eight percent and could jeopardise the re-election of Democrats, from President Barack Obama on down.
"With our trade deficit and job situations, exports keep both labour and liberals quiet," said Robert Borosage, founder and president of the progressive Campaign for America's Future.
But the re-authorisation, with higher lending limits, also fits perfectly with Obama's two-year-old "National Export Initiative" which calls for doubling U.S. exports from 1.57 trillion dollars in 2009 to more than three trillion dollars in 2015.
Opposition to the bank this year came from the right, particularly from the "Tea Party" Republicans, who won dozens of seats in Congress in the party's 2010 landslide, and their wealthy backers, including the Club for Growth, a coalition of 527 right-wing and libertarian organisations which raises money for like-minded candidates, and Heritage Action for America, the lobbying affiliate of the far-right Heritage Foundation.
Stressing Ex-Im's origins in the New Deal – whose many government programmes are viewed as "socialistic" or worse by Tea Party adherents and donors – right-wing critics have argued that it constitutes a destructive interference in the free market similar to the "bank bail-out" that followed the September 2008 financial meltdown on Wall Street.
By funding the bank, argued Sen. Jim DeMint, who is widely considered the de facto leader of the Tea Party in the Senate, "Washington sends competitors the signal that the easiest way to get ahead isn't to make better companies, but to lobby Congress for special taxpayer benefits."
"And so a vicious cycle emerges. Washington's attempt to centrally manage the economy only transfers wealth from taxpayers to corporations, it takes those corporations' eye off the ball, dulling our economy's competitive edge and slowly making America less and less competitive in the increasingly competitive global market," he wrote in the Washington Examiner in March.
But a month-long multi-million-dollar lobbying campaign mounted by Boeing and the big business associations apparently worked its magic, and, when the votes were counted in the more Tea-Party-heavy House, only 93 members – all Republicans – out of the total 435 members voted against re-authorisation. That was slightly more than a third of the 242 Republican House members.
"In the end, the vote appeared to show that old guard business groups still have muscle in the Tea Party era," the New York Times observed.
One week later, the Senate voted by a 78-20 margin to extend the Bank's charter through 2014. Of the dissenters, 19 were Republican, while the 20th was Sen. Bernie Sanders, a self-described democratic socialist who normally votes with the Democratic caucus.
"It shows the limits of Tea Party power in the Republican caucus," Borosage told IPS. "For all the talk about how they control the caucus, when the business community talks, they seem to get rolled."
The reauthorisation was applauded by the business lobby, with U.S. Chamber of Commerce President and CEO Thomas Donohue saying, "When other countries are providing their own exporters with an estimated one trillion dollars in export finance – often on terms more generous than Ex-Im can provide – failure to reauthorise Ex-Im would amount to unilateral disarmament and cost tens of thousands of American jobs."
In addition to Boeing, other big recipients of Ex-Im's largesse include KBR (previously known as Kellogg Brown & Root and owned by Halliburton, Inc.), the global engineering, construction, and private military contracting company; General Electric; and Caterpillar, Inc.
Founded by neoconservative trailblazer Irving Kristol in 1985, the National Interest has drifted away from its neocon roots since its takeover by the realist-oriented Nixon Center in 2001. Editor Jacob Heilbrunn, for example, recently defended libertarian Sen. Rand Paul against an onslaught of criticism from GOP hawks—including Irving Kristol's son William—who battered the Kentucky Republican over his opposition to U.S. intervention in Syria and Ukraine. Heilbrunn, who held out that Paul could revive the realist Republican school of foreign policy, likened Paul's critics to Cold War-era hawks who "were all full of talk of confrontation and readiness to resort to nuclear war" but who ultimately failed at the brass tacks of foreign policy.
James Schlesinger, who passed away in March, was an elite member of hawkish policy circles for decades. In the 1970s, he served under several administrations as the director of the CIA, secretary of defense, and secretary of energy, before entering the corporate world and serving on government advisory panels for the remainder of his career. A lifelong advocate of nuclear weapons, he was once called the “Yoda” of nuclear strategists. Despite his generally hawkish views, Schlesinger evinced an independent streak, once warning military leaders not to take any order to mobilize from President Richard Nixon—whom Schlesinger thought was dangerously unstable—unless he or Henry Kissinger had approved it.
Bret Stephens, a Wall Street Journal columnist who has long trumpeted a hawkish “pro-Israel” line on Mideast policy, recently penned a satirical op-ed calling on Republicans to vote for Sen. Rand Paul (R-KY) in the next presidential primary, because—he explained—what Republicans need as a “nominee in 2016 is a man of … glaring disqualifications. Someone so nakedly unacceptable to the overwhelming majority of sane Americans that only the GOP could think of nominating him.” Among the issues that mark Paul as a right-wing crazy, according to Stephens, is his insistence that Vice President Dick Cheney helped manufacture a “war in Iraq” for his friends in business and politics. But, asks Stephens, “Cui bono—to whose benefit? It's the signature question of every conspiracy theorist with an unhinged mind. Cheney. Halliburton. Big Oil. The military-industrial complex. Neocons. 9/11. Soldiers electrocuted in the shower. It all makes perfect sense, doesn't it?”
Jaime Daremblum, a former Costa Rican ambassador to the United States who now works at the neoconservative Hudson Institute, is a vocal proponent of conspiracy theories concerning an alleged Iranian plot to attack the United States in alliance with left-leaning governments in South America. He has been especially alarmist about Venezuela, whose democratically elected government he has described as a "virtual dictatorship," as well as Argentina, whose government he has accused of cooperating with an Iranian coverup of the 1994 bombing of a Jewish community center in Buenos Aires.
Concerned Women for America (CWA), a Christian Right advocacy group founded to combat the influence of “anti-God” feminists, recently made “support for Israel” one of its core issues. As part of its newfound mission, the group lobbied in support of the Kirk-Menendez “insurance policy” sanctions on Iran, which critics said were designed to scuttle the ongoing negotiations over Iran’s nuclear enrichment program. The group has also drawn controversy in recent years for supporting anti-gay legislation in Russia and for publishing a host of anti-Islamic statements.
For media inquiries,
or call 202-234-9382.
April, 22 2014
As the U.S. attempts to reassure its allies in Asia of its longstanding security commitments in the wake of Russia’s annexation of Crimea, some Asian leaders—such as Japanese Prime Minister Shinzo Abe—are making provocative gestures toward their rivals, complicating Washington’s balancing act between containing China and engaging it.
April, 17 2014
Sen. Mark Kirk, the strongly hawkish Republican from Illinois who has accused the State Department of playing politics by negotiating with Iran, has grown increasingly strident in his support for Israel as campaign donations from “pro-Israel” groups has ballooned.
April, 15 2014
A recent resolution passed by the European Parliament promoting renewed engagement between Iran and the EU has angered Iran because it scrutinizes Tehran's human rights record and calls on EU diplomats to meet with Iranian dissidents.
April, 13 2014
A new book argues that President Harry Truman, the U.S. president who first recognized the state of Israel, was skeptical of a Jewish-led state, preferring instead a joint Jewish-Arab federation in Palestine.
April, 09 2014
In its report on GOP mega-donor Paul Singer's financial support for gay rights causes, the Washington Post neglected to mention Singer's potentially greater support for hardline neoconservative foreign policy outfits.
April, 07 2014
Although Palestinians have sought to pressure Israel by applying for membership in a host of international organizations, they have so far refrained from joining the International Criminal Court, which would enable them to bring war crimes cases against Israel.
April, 01 2014
Israeli-Palestinian peace talks may serve the interests of political leaders in Washington, Ramallah, and Tel Aviv, but they appear doomed to failure.