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Guess Which CEO Threatened To Move Jobs Overseas If Congress Closes Export-Import Bank

Boeing’s first quarter reported earnings surpassed Wall Street estimates and its stock price is up about 20 percent over the past year.

Despite its positive results, Boeing is urging the federal government to maintain subsidies the company receives through the Export-Import Bank.

Boeing is the biggest beneficiary of the Ex-Im Bank – a government program that provides various types of financial support for foreign buyers of U.S. products.

For Boeing, the Ex-Im Bank financing helps the company sell airplanes around the world.

Unless Congress acts to extend the authorization for the Ex-Im bank by July, the bank will close.

The loss of a generous subsidy has corporate executives in a panic.

Last week, an executive at General Electric threatened to move jobs overseas if the bank was closed and now the CEO of Boeing recently issued a similar threat.

Boeing Chief Executive Jim McNerney recently said:

“Most of my engineering and manufacturing jobs are in the United States and I’d like to keep it that way. But without Ex-Im financing, you’d have to start asking the question” about where they should be, McNerney said at a conference sponsored by the U.S. export credit agency.

“Boeing can survive, for sure … but the competitiveness dislocation would be significant,” he added. “If Ex-Im goes away, you’d have the ‘Wild West.'”

Boeing has about 165,000 engineering and manufacturing jobs in the United States, a company spokesman said. Some of an estimated 1.5 million jobs in the company’s U.S. supply chain could also be in jeopardy if U.S. credit support ceased, McNerney noted.

While McNerney is issuing threats through the media, he is unwilling to personally bring his concerns to Congress.

According to Reuters, McNerney has declined the opportunity to testify at a Congressional hearing on the Ex-Im Bank.

If McNerney is so passionate about keeping the Ex-Im Bank, he should bring his case before Congress.

2 comments
TheRealFatherOMalley's picture
Gary O'Malley
04/30/2015

We would not be facing this dilemma If we made America a safe haven for income. In fact we would have at least 12 Trillion of private investment money flooding into the United States that would make QE's look like Little Orphan Annie without the inflation of government funny money. But far be it from me we actually do something to gain ground, let's just keep fighting defense like we did in Vietnam. That turned out well.

TheRealFatherOMalley's picture
Gary O'Malley
04/30/2015

Alexander Hamilton wrote and excellent paper in Federalist 21 explaining the advantages of a consumption tax over income taxation. We need a flat consumption tax on new retail only. New retail is the key to defeating the liberal argument that consumption taxes are regressive to the poor. Of course all real thinkers realize that ANY tax is regressive to poor because any dollar whether taken or given through purchase is regressive. The big difference is you don't confiscate the poor's earnings before they can spend to survive, save or invest. Today we punish success, savings and investments. This puts downward pressure on upward mobility. If we wish to stop the exporting of jobs, we must stop punishing success and make hiring American a lot more attractive with no more matching FiCA, tax collection from every employee etc. We don't need a reset. We CAN grow our way out of debt. Just protect income from government confiscation.

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