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OpenMarket: Subsidies and Bailouts

  • Wind and Solar Tax Credits: Special Interest Subsidies

    December 6, 2019
    The House Ways and Means Committee on November 19th released a draft of its “Growing Renewable Energy and Efficiency Now (GREEN) Act” (summary). The sponsors propose to extend, increase, and create tax credits for various non-fossil energy-related technologies, such as electric vehicles, wind turbines, and solar panels.
  • Ex-Im Bank Reauthorization: Lesson in Institutional Design

    September 23, 2019
    For all its flaws, the Export-Import Bank’s charter gets an important thing right: the agency must be reauthorized every few years, or it will close. This makes Ex-Im an important case study in institutional design. Its reauthorization requirement should be applied to nearly every government agency. Reauthorization offers regularly scheduled opportunities for Congress to enact possible reforms, or close an agency entirely. It also adds a level of democratic accountability to agencies that mostly lack it.
  • Export-Import Bank Fight Not Over Yet

    September 20, 2019
    The Export-Import Bank’s charter is currently set to expire on September 30. If authorization lapses, the agency will shut down. On Thursday, the House passed a continuing resolution (CR) to fund the government through November 21—specifically including Ex-Im. The Senate will likely pass it next week. This means the Ex-Im fight could drag on for an additional seven weeks, and possibly longer.
  • Ex-Im Bank Reauthorization: Major Victory against Cronyism, Despite Setback

    September 19, 2019
    Nobel laureate economist Ronald Coase wrote in his 1975 essay “Economists and Public Policy” that “An economist who, by his efforts, is able to postpone by a week a government program which wastes $100 million a year (which I would call a modest success) has, by his action, earned his salary for the whole of his life.” By Coase’s measure, the Ex-Im fight that began in 2014 was an enormous success, despite the coming reauthorization setback.
  • Reform Proposal Addresses Cronyism in Government-Backed Mortgages

    September 11, 2019
    Earlier this year, the Trump administration issued an executive memorandum directing the Department of the Treasury to “develop a plan for administrative and legislative reforms” of Fannie Mae and Freddie Mac—the two government-sponsored enterprises (GSEs) at the core of the 2008 housing crisis. Specifically, the memo emphasized that such proposed reforms should focus on “facilitating competition in the housing finance market.”
  • Study on Export-Import Bank: Repeal Is Best, Other Reforms Can Help

    September 10, 2019
    The Export-Import Bank is up for reauthorization by September 30. It should be shut down, as I’ve pointed out before, but reauthorization will almost certainly pass. Ex-Im was either shut down or sharply limited for nearly five years, from October 2014 until May of this year.
  • Welfare for Billionaires: Stadium Subsidies Are Pure Cronyism

    September 6, 2019
    Our old friend (and former Competitive Enterprise Institute journalism fellow) Tim Carney is doing excellent work at the American Enterprise Institute these days, where he is shining a light on the huge costs and breathtaking unfairness of corrupt government handouts to private parties—what we call cronyism.
  • Electric Vehicle Tax Credits Not Popular with Americans: Poll

    June 14, 2019
    A recent survey conducted for the American Energy Alliance clearly shows that the public does not support congressional efforts to extend or expand federal tax credits for purchasers of electric vehicles. Current subsidies of up to $7500 are available only for the first 200,000 EVs sold by each automaker. 
  • Prevent Another Mortgage Crisis: Let Qualified Mortgage 'Patch' Expire

    June 4, 2019
    Last month, the Consumer Financial Protection Bureau released its rulemaking agenda for Spring 2019. While there weren’t too many surprises in the agenda, which mainly involved implementing statutory requirements or completing ongoing initiatives, there was one important new reform that jumped out: assessing the necessity of a provision known as the Qualified Mortgage “patch.”
  • Don't Let Credit Scoring Kerfuffle Compromise GSE Reform

    May 31, 2019
    Just when it seemed that reforming the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac was becoming a “third rail” that politicians did not want to touch, Trump administration officials—from the president on down—are now making bold statements about curbing the powers of GSEs in the housing market and reducing their risk to taxpayers.

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