By Jackson Richman
The nomination of former New Jersey representative Scott Garrett to lead the Export-Import Bank, which finances corporations, was rejected this week, providing another win for crony capitalism.
While in Congress, Garrett was known for railing against the bank and voted repeatedly to eliminate it and said it “embodies the corruption of the free market system.”
Although Garrett’s nomination was sent to the Senate Banking Committee and was rejected, like any nomination, it can be voted by entire Senate despite it being rejected in committee. David Popp, spokesman for Senate Majority Mitch McConnell, told The National Discourse that he does not “have any guidance or announcements on him,” and referred the Discourse to the White House, which did not respond to a request for comment.
Below is a list of who voted to ensure a win for crony capitalism.
- Sherrod Brown (D-OH)
- Jack Reed (D-RI)
- Bob Menendez (D-NJ)
- Jon Tester (D-MT)
- Mark Warner (D-VA)
- Elizabeth Warren (D-MA)
- Heidi Heitkamp (D-ND)
- Joe Donnelly (D-IN)
- Brian Schatz (D-HI)
- Chris Van Hollen (D-MD)
- Catherine Cortez Masto (D-NV)
- Mike Rounds (R-SD)
- Tim Scott (R-SC)
Reason‘s Christian Britschgi explains how the Export-Import bank is a win for cronyism:
The Bank works by giving low-interest loans—backed by the full faith and credit of the U.S. taxpayer—to foreign customers of American exporters. It also issues guarantees to private banks making loans to foreign purchasers of American products, promising to cover these banks’ losses should these foreign debtors fail to make good on their obligations.
Because of these direct taxpayer subsidies for corporate sales, critics have long derided the bank as one of the worst examples of crony capitalism. The Competitive Enterprise Institute’s Daniel Press calls it “one of the capital’s greatest boondoggles.” Veronique de Rugy of the Mercatus Center—a Reason columnist—has frequently suggested that the bank should be scrapped.
Senator McConnell has three choices: Advance Garrett’s nomination to the Senate floor, with a tie-breaking vote by Vice President Mike Pence, assuming all other 50 Republicans vote in favor of his nomination; or refuse to vote on the other nominees that have been confirmed in committee and await a full Senate vote.
Even more ideal would be to shut down the corporatist bank.