Obama Should Stop Abuses in Government Small Business Programs
November 12th, 2008
The United States is suffering from one of the worst economic catrostrophies since the great depression.
The fastest and simplest way for President Elect Obama to address the current economic crisis and stimulate our nations failing economy would be to focus on the job creators in America, small businesses.
There are approximately 26 million American firms with less than 100 employees. These firms employ approximately 56 percent of all Americans and are responsible for over 80 percent of all new jobs.
The Federal Government has numerous existing programs that were designed to stimulate the U.S economy by providing assistance and contracting opportunities to small businesses.
Since 2003, a series of federal investigations found every year billions of dollars in government small business contracts are diverted to Fortune 500 firms. In response to the investigations, last February Senator Obama released this statement, “It is time to stop the diversion of federal small business contracts to corporate giants.”
In October, the Washington Post released a story, which found that at least 38.5 percent of federal small businesses contracts go to Fortune 500 firms alone. The American Small Business League (ASBL) estimates that as much as $100 billion a year in federal small business contracts and subcontracts actually go to large businesses.
Few, if any of the economic stimulus plans that have been proposed would infuse as much money into our middle class economy as ending the abuses in existing federal small business programs. The first thing President Obama should do when he takes office is to immediately enact legislation and policy that will clean up abuses in existing federal small business programs and end the diversion of federal small business contracts to corporate giants as he said in February.
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