The Export-Import Bank socializes risk for private benefit

Published July 31, 2014 9:00pm ET



One reason that governments grow fast without many obstacles is because the benefits of expansion are concentrated on a few while the costs are spread among millions.

Program beneficiaries have strong incentives to coordinate and protect their privileges. Average Americans, on the other hand, simply do not have the time or information to organize enough opposition to defeat these programs. They might bear the costs of government expansion, but individual programs only cost each American a few tax dollars here and there. Fighting for reform is simply not worth it. Bad programs proliferate, then, because cronyism pays more than stewardship.

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