How many times have you heard President Obama talk about the importance of small businesses in America? Dozens? Hundreds?
He’s right about how important small businesses are to the U.S. economy. According to U.S. Census Bureau data, small businesses are responsible for over 90 percent of net new jobs in America. America’s 28 million small businesses are also responsible for over 50 percent of the private sector work force, over 50 percent of the GDP and over 90 percent of all U.S. exporters.
As I have said many times before, people need to quit listening to what President Obama says and look at what he does. The facts show how he really feels about American small businesses.
He just slashed the Small Business Administration’s (SBA) miniscule budget by over $100 million. The SBA budget is less than .001 percent of the Pentagon budget. The SBA budget was higher over 30 years ago, under Ronald Reagan, than it is today.
He is also refusing to appoint a successor to former SBA Administrator Karen Mills who resigned over seven months ago. Several federal investigations and investigative reports by the mainstream media have uncovered widespread fraud in every federal small business program and at the SBA.
Now he wants to close the SBA permanently under the guise of “streamlining government.” The real reason he wants to close the SBA is to cover up the rampant fraud that has been exposed at the SBA under former Administrator Mills.
There is one and only one federal agency in our government to assist the small businesses that are the undeniable engine of economic growth and job creation in America, the SBA. The single most important program administered by the SBA is the federal law that mandates that a minimum 23 percent of all federal contracts be awarded to small businesses. The federal government’s 23 percent small business contracting goal is likely the most efficient and effective economic stimulus plan in our nation’s history.
What better way to reinvest federal infrastructure spending than to insure that at least 23 percent of federal contracts go to the small businesses that create over 90 percent of new jobs?
Let’s look at it this way, if small businesses are responsible for over 90 percent of net new jobs that means big businesses are responsible for less than 10 percent.
So let’s see, under the current federal law, the small businesses that are responsible for over 90 percent of net new jobs get just 23 percent of all federal contracts and the big businesses that create less than 10 percent of net new jobs get the other 77 percent.
So here’s my favorite part of my case, President Obama wants to close the SBA and eliminate the 23 percent small business contracting goal so the corporate giants that create less than 10 percent of American’s net new jobs can get 100 percent of all federal contracts and subcontracts.
That sounds like a great idea right? America is experiencing unprecedented levels of long term unemployment. The national labor participation rate is at an all-time low. Twenty-two million Americans are either unemployed or underemployed.
And what’s President Obama’s plan? I know, let’s close the only agency in Washington to help small businesses and shut down the only government program to assist the small businesses where most Americans are employed. Let’s give 100 percent of federal spending to the corporate giants that are shipping jobs overseas at a record rate and paying the lowest level of federal income tax in our nation’s history.
I predicted President Obama would try and close the SBA under the guise of combining it with the Department of Commerce in November of 2008. He proved me right in January of 2012 when he announced his plan to do exactly that.
If President Obama is allowed to close the only federal agency in our government that assists American small businesses and end the oldest, most efficient and effective economic stimulus program in U.S. history, it will be devastating to the middle class economy.
Over $100 billion a year in existing federal infrastructure spending will be pulled from the middle class economy, millions of small businesses will be devastated and millions of jobs will be lost.
Don’t let him do it.
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