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Lloyd Chapman

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Top 6 Reasons Obama's Economic Policies Failed in 2011

Posted: 12/30/11 11:41 AM ET

Politically and economically, the U.S. in 2011 fell flat on its face. There are several reasons why our government miserably failed us this year but the most devastating reason is that it did absolutely nothing to help the economy. In fact, the Obama administration helped make matters worse. Here are my top six reasons why the Obama administration failed us in 2011:

1. Failed to realize that small businesses create all the net new jobs and instead directed most economic stimulus to large corporations that, according to the U.S. Census Bureau data and the Kauffman Foundation, most likely have not created one net new job in 30 years.

2. President Obama failed to honor his 2008 campaign promise to end the diversion of federal small business contracts to corporate giants. The federal government is required to award 23 percent of all prime contract dollars to legitimate small businesses but because of fraud, loopholes and lack of oversight, most of that money is awarded to Fortune 500 corporations and their subsidiaries.

3. Decreased transparency in federal contracting by removing the parent company duns number from the Federal Procurement Data System, making it easier for large corporations to misrepresent their size status in order to hijack small business contracts and for the government to misrepresent the true volume of contracts awarded to small businesses.

4. Announced plans to remove from the Federal Acquisition Regulation (FAR) one of the largest and most effective federal contracting programs for minority-owned small businesses, originally established through the efforts of Martin Luther King Jr., and the passage of the Civil Rights Act. Dismantling of this program could cost minority-owned small businesses up to $25 billion annually and unemployment among minorities will undoubtedly rise as a result. It is ironic that minority communities were moved to tears when Barack Obama was elected president and now he is removing one of their simplest and most effective methods of economic stimulus.

5. He tried to create jobs by using tax cuts when most leading economists agree that tax cuts do not create jobs. Tax cuts will increase the deficit and ultimately harm the economy.

6. He will extend the Comprehensive Subcontracting Plan Test Program (CSPTP), which establishes anti-small business policies that exempt large defense contractors from disclosing whether they've met their small business subcontracting goals and also exempts large defense contractors from any penalties of non-compliance with congressionally mandated small business procurement goals. All evidence shows that this hurts small businesses.

Judging by his actions, it seems that Barack Obama is becoming one of the most anti-small business presidents in U.S. history. People need to stop listening to what he says and start watching what he does.

 

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