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Veronique De Rugy

Veronique De Rugy

Veronique de Rugy is a senior research fellow at the Mercatus Center at George Mason University and a nationally syndicated columnist. Her primary research interests include the U.S. economy, the federal budget, homeland security, taxation, tax competition, and financial privacy. Her popular weekly charts, published by the Mercatus Center, address economic issues ranging from lessons on creating sustainable economic growth to the implications of government tax and fiscal policies. She has testified numerous times in front of Congress on the effects of fiscal stimulus, debt and deficits, and regulation on the economy.

Articles by Veronique De Rugy

Comments on the Ex-Im Bank's Proposed Additionality Criteria

6 days ago

I appreciate the opportunity to submit comments to the Export-Import Bank in response to its proposed guidelines for determining Export-Import (Ex-Im) Bank Additionality for medium- and long-term transactions. The Mercatus Center at George Mason University is dedicated to bridging the gap between academic ideas and real-world problems and to advancing knowledge about the effects of regulation on society. These comments, therefore, do not represent the views of any particular affected party or special interest group. Rather, they are designed to help the Ex-Im Bank as it considers the proposed guidelines.
The proposed guidelines are not likely to change anything about the way the Ex-Im Bank selects among applicants. As such, they fail to deliver on the promises made by the Ex-Im Bank’s

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Comments on the Ex-Im Bank's Current Economic Impact Procedures

6 days ago

I appreciate the opportunity to submit a comment to the Export-Import (Ex-Im) Bank’s current economic impact procedures. The Mercatus Center at George Mason University is dedicated to bridging the gap between academic ideas and real-world problems and to advancing knowledge about the effects of regulation on society. This comment, therefore, does not represent the views of any particular affected party or special interest group. Rather, it is designed to help the Ex-Im Bank as it considers revising its economic impact analysis procedures.
During her confirmation hearing to become the new president of the Ex-Im Bank, Kimberley Reed promised Senator Pat Toomey that she would improve protection for domestic companies from economic harm that might arise from the Ex-Im Bank financing their

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If You Can’t Abolish the Ex-Im Bank, Reform It at Least

22 days ago

As always, Congress is failing at its most important job, which is to actually pass a budget, on time, within the budgetary rules. So, right on time, the House passed a stopgap spending bill that would continue government funding until November 21. The Senate will take it up next week. Included in this bill is a reauthorization of the Export-Import Bank.
The Ex-Im Bank is a mercantilist New Deal-era agency that extends financial products to foreign companies so they will buy American products. It is one of the quintessential examples of cronyism. Before going through a four-year dormant period, the agency’s top beneficiary in the US was Boeing. The company benefited from 40 percent of the agency’s overall activities and 70 percent of its loan-guarantee programs. That’s why we all call it

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Ex-Im "Reform" Documents Look Like More of the Same Crony Capitalism

29 days ago

It has been disheartening, though not completely surprising, to watch the Republican party move from being the driving force behind terminating the crony capitalist agency known as the Export-Import Bank to a party that will do anything to not step on the toes of the president. Mr. Trump used to think Ex-Im was corporate welfare too, but he now would like to use the Bank as a national security tool to compete with China.
What has been surprising is just how acquiescent Republican senators have been to the president’s pivot to embrace Ex-Im. Take a look, for instance, at the list of those who voted in favor of the nomination of Kimberley Reed as the new Ex-Im head. That vote effectively brought the agency back to life after a four-year hiatus. You will find the names of senators who

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Ex-Im “Reform” Documents Look Like More of the Same Crony Capitalism

29 days ago

It has been disheartening, though not completely surprising, to watch the Republican party move from being the driving force behind terminating the crony capitalist agency known as the Export-Import Bank to a party that will do anything to not step on the toes of the president. Mr. Trump used to think Ex-Im was corporate welfare too, but he now would like to use the Bank as a national security tool to compete with China.
What has been surprising is just how acquiescent Republican senators have been to the president’s pivot to embrace Ex-Im. Take a look, for instance, at the list of those who voted in favor of the nomination of Kimberley Reed as the new Ex-Im head. That vote effectively brought the agency back to life after a four-year hiatus. You will find the names of senators who

Read More »

On Trade, Both Trump and Warren Get a Fail

September 11, 2019

When you care about freedom, there are a lot of areas where politicians of both sides are two sides of the same coin. I have already highlighted the similar enthusiasm of Senators Josh Hawley and Kamala Harris for using government to achieve their goals. 
Here is another one. When it comes to trade, Senator Elizabeth Warren and President Trump are two peas in a pod.
President Trump’s views on trade are well known. Unfortunately, given the modern presidency’s enormous executive power, Trump has already inflicted on us many of his destructive policies. While some of his more free-market advisors have convinced him to occasionally assert that his ultimate goal is the elimination of all tariffs and subsidies worldwide, these assertions ring hollow given that they are always premised on the

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How To Get Better at Budgets

July 26, 2019

Veronique de Rugy writes on laws passed in certain countries which aim to reduce deficit spending and provide better oversight over government finances– steps that should be taken in the U.S.
Read it at Reason.

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Want To Be an Eyelash Technician? You Will Need a License for that.

June 11, 2019

My colleague Adam Thierer sent me this tweet from Rep. Jillian Gilchrest (D-CT). Apparently, the legislator is thrilled that Connecticut will keep more low-skilled workers out of the labor force by passing an occupational-licensing requirement for, wait for it, eyelash technicians, estheticians, and nail technicians.
Here is the tweet:
I am beyond pleased that Connecticut will join the rest of the country in licensing eyelash technicians, estheticians (July 2020), and nail technicians (Jan 2021). #GettingThingsDone#2019Session
Her ignorance and economic illiteracy would be funny if it were not for the fact that many people will suffer as a result of this restriction. Many will not be able to start their own businesses, while many others will have to pay higher prices for simple cosmetic

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Kill The Boeing Bank Once and For All

April 8, 2019

Representative Justin Amash (R-MI) just reintroduced a bill called the Export-Import Bank Termination Act of 2019. The congressman honorably aspires to permanently close the federal credit agency because of its extreme cronyism.
Until 2015, the agency used its discretion to extend loans so that foreign corporations would buy American exports from large and well-connected firms. The leader of the winner’s pack was Boeing which would score 70 percent of all Export-Import Bank loan guarantees and 40 percent of all activities.
This is why Ex-Im was commonly called “the Bank of Boeing.”
No more, though. Since 2015, the Bank has been functioning at about 16 percent capacity. The reason: thanks to some Republican members in the Senate, it has failed to get the 3 members on its board of directors

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Kill The Boeing Bank Once and For All

April 5, 2019

Veronique de Rugy writes on the effects of reforms to the Export-Import Bank, which have prevented large sums of its annual loan capacity from being handed to Boeing over other businesses.
Read it at AIER.

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