American Small Business League

January 29, 2014

During his State of The Union address President Obama mentioned one word more than any other. That word was jobs. He mentioned the word “jobs” 17 times. I’m sure he has seen the polls that indicate the number one issue for American voters is the economy and jobs.

President Obama acknowledged that small businesses are responsible for the majority of new jobs in America. He is absolutely right. According to the latest data from the U.S. Census Bureau, small businesses are responsible for over 90% of the net new jobs in America. (Census Bureau data)

What President Obama doesn’t seem to understand is that the largest, most efficient and effective program in U.S history to create jobs is the Small Business Act of 1953. Today, based on the Small Business Act, federal law requires a minimum of 23% of the total value of all federal contracts and subcontracts be awarded to small businesses.

I have a belief that you can tell the difference between what a person says and how they really feel by watching what they do. When you watch what President Obama does, he does not seem to understand that small businesses are the solution to economic stimulus, slashing income inequality, reducing poverty and creating jobs.

Every year of the Obama Administration, President Obama’s appointed Inspector General for the Small Business Administration(SBA), Peg Gustafson, has named the diversion of federal small business contracts to large businesses as the number one problem at the SBA. (video)

Over a dozen federal investigations and investigative reports in the mainstream media have all found that billions of dollars in federal contracts, that by law should be going to America’s top job creators, have instead been knowingly diverted to many of the largest companies in the world. (video)

Last year, 235 Fortune 500 firms received federal small business contracts along with thousands of large businesses from around the world. (press release)

The simplest solution to creating jobs in America seems quite clear. Stop giving federal small business contracts to many of the largest corporations in the world.

President Obama has stated he is willing to use executive orders to solve America’s most pressing problems. Here is my suggestion for President Obama. Issue an executive order that simply stops the government policy of knowingly diverting federal small business contracts to corporate giants. It’s what I like to call a free and easy solution. No new taxes, no new spending, just end the rampant fraud and abuse at the SBA that has persisted for 15 years. (CBS news)

If President Obama did that, it would put more existing federal infrastructure spending into the middle class and create more jobs than any economic stimulus program he or former President Bush ever passed. Did I mention it was free and easy?!

Here is one more reason President Obama should issue an executive order to end the diversion of federal small business contracts to corporate giants: It was a campaign promise he made in February of 2008 when he released the following statement.

“It is time to end the diversion of federal small business contracts to corporate giants.” (link)

We should all expect President Obama to do what he said he would do especially when it’s so simple and would create millions of jobs.