As you may be aware, congressional Republican opposition to the reauthorization of the Export-Import Bank has cost hundreds of jobs and caused plant closures in multiple states where foreign orders for American exports have been canceled because no financing is available.
Just last week, General Electric (GE) announced that it would finance an $11 billion contract through the French export bank because the American bank is no longer operational.
Jeb Bush spoke at the Heritage Action (the Heritage Foundation's political arm) policy forum in South Carolina where he came out against the Export-Import Bank, saying that he would oppose reauthorization.
"The Ex-Im Bank is an example of this. It may have worked in the past, but again, we're in a different era. The economy is different. The large businesses are going to do fine. What we want to do is tear down barriers so small businesses can disrupt."
It "may have worked in the past" but now it doesn't because why?
What Jeb Bush is saying is he wants to foster an environment where startup banks and financiers ("small businesses") fill the role previously filled by the Export-Import Bank. The problem is that's not going to happen.
The Export-Import Bank does not fill a void that would otherwise be occupied by the private sector. The bank provides financing to foreign companies that are considered to be too risky for private financing. The only "barrier" to small business is the bank's closure.
Jeb is correct in saying we're in a "different era" because financing is available through many other countries that will gladly accept business that America has rejected for purely ideological reasons. Why wouldn't France want to finance an $11 billion contract for GE if it means GE will export goods produced in France rather than America? Why wouldn't any country with the necessary financial infrastructure?
This fake populist movement against the Export-Import Bank doesn't benefit American business or consumers. It may, however, benefit business in other countries. America is closed for business.