ASBL statement on Obama's State of the Union Address

News

ASBL statement on Obama's State of the Union Address

By IB Times Staff Reporter
International Business Times
January 26, 2011

President Barack Obama delivered his State of the Union Address on Tuesday saying, "we do big things, challenging Americans and Congress to take on the global competition for jobs, and tackle the nation's huge debt and deficit

However, the American Small Business League (ASBL) said President Obama relied on the same tired rhetoric, while continuing to ignore billions of dollars in job killing abuse in small business contracting programs.

During the course of the State of the Union address, President Obama mentioned small businesses five times and jobs more than 30 times.

Small business advocates point to the stark contrast between President Obama's rhetoric, and his actions to create jobs, stimulate the economy and aide the nation's 27 million small businesses. Two years after taking office, the Obama Administration has held a series of summits and forums to cultivate solutions while at the same time failing to make good on a series of campaign promises to America's small business community.

Small business create 90 percent of all net new jobs, and employ more than 50.2 percent of the nation's private sector workforce, according to statistics from the U.S. Census Bureau and the U.S. Department of Labor.

ASBL, in its statement, said small businesses are the backbone of the nation's economy and job creation. Yet, the Obama Administration has consistently refused to honor its small business campaign promises, including promises to stop the diversion of federal small business contracts to corporate giants.

Since 2003, a series of federal investigations have uncovered the diversion of billions of dollars a year in federal small business contracts to corporate giants. In Report 5-15, the Small Business Administration (SBA) Office of Inspector General described the abuse as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today."

Obama also failed to restore the SBA's budget and staffing to pre-Bush Administration levels. To date, the SBA's budget remains below Clinton and Reagan era levels, ASBL said.

"It's real simple. Small businesses create a vast majority of net new jobs, yet President Obama has given them virtually none of the stimulus money, while giving nearly all of the small business contracting dollars to Fortune 500 firms. Until that ends, unemployment is not going to go down and the economy is not going to recover," ASBL President Lloyd Chapman said. "The best way to stimulate the economy is to pass the Fairness and Transparency in Contracting Act."  

(Photo: REUTERS)
American Small Business League said President Obama relied on the same tired rhetoric, while continuing to ignore billions of dollars in job killing abuse in small business contracting programs.

 

Source: http://www.ibtimes.com/articles/105160/20110126/obama-barack-obama-state-of-the-union-address-congress-republicans-americans-jobs-small-businesses-a.htm

Biz Groups Give President The Biz

News

Biz Groups Give President The Biz

By Steve Viuker
Biz Box Slate
January 26, 2011

Although the State of the Union address given by President Obama was praised by both the AFL-CIO and the U S Chamber of Commerce, small business organizations had mixed feelings; including some very negative comments.

Brett Palmer, President of The National Association of Small Business Investment Companies (NASBIC), said that "aside from being open to removing a major burden he signed into law, (health-care 1099 provision) there was little tangible to assess."

"Center Rock, the small business Obama lauded for playing such a critical role in the Chilean miner rescue, received its capital through a Small Business Investment Company (SBIC). It is creating self sustaining private sector jobs across the country. That wasn't mentioned by the President."

Said Dan Danner, President and CEO of the National Federation of Independent Business, (NFIB) “While there were a few hopeful moments for small-business owners in the president’s speech last night, overall our impression is that, when the Obama administration talks about ‘business’ they really mean big business. Increasing trade and cutting corporate taxes are big-business issues. Very few small firms engage in international trade or pay corporate taxes."

“We do appreciate the president’s mention of repeal the health-care law’s 1099 provision. It is something that is a terrible burden on small firms and never should have been in the law to begin with. With no mention of the job-creating power of small businesses, and no proposals to unleash their enormous potential, the small-business community is left with the feeling that the president doesn’t ‘get’ small business. We’d be happy to help him get to know us better.”

The NSBA did have lukewarm praise for the speech. “Innovation is what we do. Small firms produce five times as many patents per revenue dollar as large companies and 20 times as many as universities,” stated Larry Nannis, National Small Business Association chair and shareholder at Levine, Katz, Nannis + Solomon, P.C.. “We applaud the president’s commitment to innovation and look forward to joint efforts ensuring the continued success of programs such as the Small Business Innovation Research program.”

The harshest overview came from Lloyd Chapman, President of the American Small Business League. "President Obama is just like an actor, playing a role, and reading his lines," he said. "When people watch President Obama on television they need to realize this is a man that has broken virtually every campaign promise he has ever made to small businesses."

"In February of 2008, President Obama promised to end the diversion of federal small business contracts to corporate giants, yet today this abuse continues to pull billions of dollars a month out of the middle class economy. This is a President that has allowed Wall St. to continue to make record profits; while our homes are worth less and less, unemployment continues to go up, and the middle class continues to suffer. Political rhetoric without action is meaningless."

Source: http://bizbox.slate.com/blog/2011/01/biz_groups_give_president_the.php

Bay Area Democrats Generally Happy With State Of Union Speech

News

Bay Area Democrats Generally Happy With State Of Union Speech

By Staff
KTVU.com
January 25, 2011

Bay Area Democratic legislators were generally pleased with President Obama's State of the Union address Tuesday night, while the business community was more divided in its evaluation.

 

Job creation and government spending were at the core of Obama's speech, which included references to America's crisis of confidence following the Russian launch of the Sputnik rocket in 1957 and challenged the nation to have a new "space race" in the form of innovation, education and infrastructure.

 

"We'll invest in biomedical research, information technology, and especially clean energy technology -- an investment that will strengthen our security, protect our planet, and create countless new jobs for our people," he said.

 

The president also spoke of the importance of reducing the deficit and restructuring the federal government to make it more efficient, but he made it clear he would not abandon government spending on what he considers crucial investments, such as education.

 

Rep. John Garamendi, D-Walnut Creek, said he was happy the president emphasized investment in innovation and infrastructure, which are particularly important to Northern California constituents.

 

"I thought he did a very good job," said Garamendi, who was elected to Congress in 2009 after having served as lieutenant governor, state insurance commissioner, and deputy secretary of the interior.

 

"He was basically saying we need to make it in America -- bring these jobs back home and make it in America. So that was really, in my view, very important that he said, 'These are the crucial investments.'"

 

Garamendi said the feeling in the House chambers, where Republicans and Democrats adopted an integrated seating chart this year, was less partisan than last year. The tone was more measured, he said.

 

This year's State of the Union address came just over two weeks after Rep. Gabrielle Giffords, D-Arizona, was critically injured in a shooting at a political event in Tucson, Ariz., that left six people dead, including a federal judge.

 

"I think the applause was not partisan," this year, said Garamendi, who sat by Republicans from New Hampshire and Florida. "Almost all the applause I observed was based upon people hearing an issue and saying, 'Yes, I think that was good.'"

 

Obama too seemed to seek a bipartisan tone in the speech, often mentioning Republican proposals he would be willing to support -- such as health care tort reform -- and promising to work with Republicans to streamline government.

 

"I am willing to eliminate whatever we can honestly afford to do without," he said. "But let's make sure what we're cutting is really excess weight. Cutting the deficit by cutting our investments in innovation and education is like lightening an overloaded airplane by removing its engine."

 

Garamendi said the president laid out a solid agenda, and now it's up to Congress to find a way to do it.

 

He said his main point of contention with the president was Obama's remarks about the war in Afghanistan. The president said he would begin bringing troops home in July.

 

"I think we ought to end the war now," Garamendi said.

 

Rep. Barbara Lee, D-Oakland, said in a statement that she too wanted the president to announce a "clear and urgent roadmap to peace in Afghanistan."

 

She and Garamendi both described the need to reign in defense spending and invest the money in domestic affairs, and Lee criticized Obama's plan to freeze annual domestic spending for the next five years, which the president said would save $400 billion over the next decade.

 

"Budgets are moral documents, and they reflect who we are, and what we value as a people," Lee said.

 

She praised the president, though, for not bowing to Republican pressure to repeal 2010's health care reform law, the Patient Protection and Affordable Care Act.

 

Business leaders offered a less unanimous review of Obama's speech.

 

The Bay Area Council, a business-sponsored advocacy group, said Obama sent the "right signal" to the business community.

 

"He understands that our success is vital to America's prosperity," council president and CEO Jim Wunderman said in a statement.

 

The CEO of the California High-Speed Rail Authority, which aims to connect San Francisco to Los Angeles, said the president's vow to redouble infrastructure investment is the "exact sign" the private sector needs to be confident that the U.S. is committed to developing high-speed rail.

 

Obama said his goal was for 80 percent of Americans to have access to high-speed rail within the next 25 years.

 

"We are happy to have the partnership of our federal government and congressional delegation," CEO Roelof van Ark said in a statement.

 

The Petaluma-based American Small Business League, however, accused Obama of relying on the "same tired rhetoric" while failing to ensure small businesses benefit from economic stimulus funds.

Source: http://www.ktvu.com/news/26618072/detail.html

American Small Business League Criticizes President's Small Business Policies

News

American Small Business League Criticizes President's Small Business Policies

By Resources for Entrepreneurs Staff
Gaebler.com
January 25, 2011

Prior to President Barack Obama's State of the Union address, the American Small Business League criticizes the allotment of federal contracts.

Tuesday's State of the Union address from President Barack Obama is sure to produce a significant amount of small business news. However, one organization is doubting the speech will make much of a difference.

In a recent statement, the American Small Business League predicted that President Obama will rely on the same "tired rhetoric" when it comes to the economy while continuing to ignore the alleged diversion of billions of dollars in federal small business contracts to large corporations.

According to research from the ASBL, more than $100 billion in federal contracts are awarded to Fortune 500 companies, resulting in Congress achieving less than 5 percent of its 23 percent small business contracting goal.

"The American people need to quit buying into President Obama's well written speeches and start paying attention to his actions," ASBL President Lloyd Chapman said. “Our economy is being threatened, and yet President Obama has repeatedly refused to address this job killing contracting scandal."

The ASBL is not the only one casting doubt on the President. John Paglia, a finance professor at Pepperdine University, told ABC News that President Obama and Congress must realize that there isn't a one-size-fits-all solution.

Source: http://www.gaebler.com/News/Small-Business-Startup/American-Small-Business-League-criticizes-President%27s-small-business-policies-800364496.htm

Obama State of the Union Speech will be Predictable for the Middle Class

Press Release

Obama State of the Union Speech will be Predictable for the Middle Class

January 25, 2011

Petaluma, Calif. – Tonight, President Barack Obama will deliver his second State of the Union address to the American people.  The American Small Business League (ASBL) is predicting that President Obama will rely on the same tired rhetoric regarding economic stimulus, while continuing to ignore the diversion of federal small business contracts to corporate giants. 

Since 2003, more than a dozen federal investigations have uncovered the diversion of billions of dollars a month in federal small business contracts to some of the largest businesses in the world.  In Report 5-15, the Small Business Administration Office of Inspector General referred to the abuse as, “One of the most important challenges facing the Small Business Administration and the entire Federal government today.” (https://www.asbl.com/documents/05-15.pdf)

Recently, the ASBL conducted a review of the top 100 recipients of federal small business contracts for FY 2009. Within its sample, the ASBL identified 60 large firms, which received 64.5 percent of the total dollars the government claimed to have awarded to small businesses. According to government data, recipients of federal small business contracts included: Boeing, Lockheed Martin, Northrop Grumman, Raytheon, Dell Computer, Xerox, SAIC, General Dynamics, Bechtel and John Deere. (www.asbl.com/documents/ASBL_2009_dataanalysis.pdf)

Based on its research and the federal government’s own small business contracting data, the ASBL has estimated that every year more than $100 billion in federal small business contracts are diverted to Fortune 500 firms and other large businesses.  As a result of these abuses, the ASBL maintains that the federal government is achieving less than 5 percent of its congressionally mandated 23 percent small business-contracting goal.

In April of 2010, Senate Small Business Committee Chair Mary Landrieu (D – LA) estimated that increasing federal contracts to small businesses by just 1 percent would create more than 100,000 new jobs.  Based on this estimate, ending the flow of federal small business contracts to corporate giants could create more than 1.8 million new jobs. (www.smallbusinessmajority.org/_docs/resources/SBC_Jobs_Package.pdf)   

“The American people need to quit buying into President Obama’s well written speeches, and start paying attention to his actions,” ASBL President Lloyd Chapman said. “Our economy is being threatened, and yet President Obama has repeatedly refused to address this job killing contracting scandal.  You cannot create jobs with rhetoric, but you can supercharge job creation by ending the diversion of federal small business contracts to corporate giants.”

In addition to failing to stop the diversion of federal small business contracts to corporate giants, President Obama has ignored a series of campaign promises including: full restoration the SBA’s budget and staffing to pre-Bush Administration levels, and restoration of cabinet-level status of the SBA Administrator.

-###-