As Congress seems about to end the Export-Import Bank, Governor Cuomo wants NY Taxpayers to Fund Corporate Welfare.
In one of the rare triumphs of reason over corruption in the Federal government, it looks as if a government office of crony corruption might finally be put down. Left and Right agree that the Export-Import Bank needs to end.
But a group of politicos are horrified by the end of the taxpayer-finance corporate welfare. One of them is Governor Andrew Cuomo of New York. According to the Daily Signal,
New York Gov. Andrew Cuomo proposes to create what he envisions as the Empire State’s own business-boosting version of the Export-Import Bank, a much-contested agency that key congressional leaders intend to kill.
The New York Democrat says his state-level take on the Ex-Im Bank would offer loans, loan guarantees and grants to help New York businesses expand into foreign markets.
First of all, why should taxpayers be forced to pay to “boost business”? Business is a profit-seeking enterprise. Subsidizing businesses means they no longer have to rely on consumers and thus don’t have as much incentive to deliver goods and services that the consumers are actually willing to pay for.
Thus, loans should be available for real opportunities in foreign markets. Why would government bureaucrats be more likely to recognize such opportunities using taxpayer money than entrepreneurs trying to find the best use for their own money?
Using grants to support businesses expanding into foreign markets is called robbing from the poor to give to the rich. It is evil.
Cuomo’s plan, announced Tuesday, is part of a $35 million “Global NY Development Fund” that would devote $25 million to making loans so that small businesses could “develop capacity to enter new markets.”
Another $10 million would operate as a grant fund for small- and medium-sized businesses seeking to develop “export capacity.”
The only reason a business could not “develop capacity” in the private sector would be because there is doubt about the opportunities in the new market. This policy could have no other effect than to cause people to take unwarranted risks. It is a recipe for a series of Solyndras. It is a process for turning theft into wasted money.
I have to admit, as much as I hate seeing taxpayer-abuse, part of me hopes that Cuomo gets his way. New York State has far too much influence in this country because of its wealth. The sooner it all gets drained away in corruption and mismanagement so that we can step out of its shadow, the better.