OPIC: Crowding Out American Companies

Last week, a minority of House Republicans joined their Democrat colleagues in approving a three-year reauthorization of the Overseas Private Investment Corporation (OPIC).  On the day of the vote, the Congressional Research Services (CRS) released a 23-page report on the taxpayer-backed organization, which included the following:

Over time, Congress has debated the acceptability of federal programs like OPIC that support private sector trade and investment. While OPIC’s goals of economic development through the mobilization of investment may have broad support, there are differing viewpoints on the U.S. economic effects of OPIC’s financing and insurance activities. Economists generally oppose the use of government resources to promote trade or investment abroad. They believe such intervention may distort the flow of capital and resources away from the most efficient uses. They also believe that by promoting investment abroad, OPIC may be crowding out, and thereby reducing, some domestic investment. Some critics also argue that OPIC support is directed towards companies whose overseas investments result in the outsourcing of U.S. jobs. (emphasis added)

Did your Representative vote to crowd out American companies?

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Congressional Research Service: OPIC crowds out American jobs.

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Did anyone read this report before voting to extend OPIC?

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OPIC's intervention may distort the flow of capital, promote inefficiency.

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