July 5, 2012

TIM CARNEY: Obama’s subsidies: Private profit, public risk.

Obama plans to use the Export-Import Bank — a federal agency that gives taxpayer-backed loans and loan guarantees to foreign buyers who buy American goods — to subsidize U.S. manufacturers even when they are selling to other American companies.

This would be a significant step in the federal government’s transformation into a venture capital firm and investment bank involved in all corners of the economy. It’s private profit and public risk. Conservative Sen. Jim DeMint calls it “venture socialism.”

Fatcats will get rich, and most ventures will fail. That’s my prediction.

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