President Obama has revived a plan Ronald Reagan used to try and end all federal programs for the nation's 28 million small businesses. President Reagan's plan to permanently close the Small Business Administration (SBA) was to combine it with the Department of Commerce.
I first predicted President Obama would try and close the SBA and kill all federal small business programs by combining the SBA with the Department of Commerce in November of 2008. President Obama proved me right in January of 2012 when he announced his plan to do exactly that.
Reagan and Obama's efforts to close the SBA are the epitome of everything that is wrong with America.
It proves the United States of America is not a democracy but an oligarchy. The nation's largest defense contractors have always been behind the campaign to close one of the smallest agencies in our government. Why? Federal law mandates a minimum 23 percent of all federal contracts be awarded to small businesses. Defense contractors have pressured every president for over 30 years to close the SBA because they want 100 percent of what our government spends. Their unbridled greed has blinded them to the economic facts of America.
According to the U.S. Census Bureau, small businesses are responsible for over 90 percent of net new jobs, over 50 percent of the private sector workforce, over 50 percent of the GDP and over 90 percent of all U.S. exporters. The 23 percent small business-contracting goal is likely the most efficient and effective economic stimulus program in history.
If President Obama succeeds in closing the SBA, large businesses that have hijacked federal small business contracts for a decade and are responsible for no more than 10 percent of net new jobs in America could land close to 100 percent of all federal contracts. The impact on the middle class economy will be devastating.
The SBA oversees the two largest federal programs to assist the nation's 28 million small businesses. The SBA is responsible for the $100 billion+ loan program and the $100 billion federal small business contracting program. Think of the impact it will have on the middle class economy and unemployment if the two largest federal programs to assist small businesses are dismantled and for what? So that giant defense contractors that already receive an obscene amount of our tax dollars can make even more money?
The fact that corporate giants have hijacked billions of dollars in federal small business contracts for over a decade has been uncovered in over a dozen federal investigations and investigative reports.
The efforts by Reagan and Obama to close the SBA are also a sad reminder that the men we elect to lead our nation are not the heroes we hoped they would be. Reagan and Obama's efforts to close the tiny federal agency that helps the 28 million small businesses where most Americans work is absolute proof that both of these men are everything we don't want in our political leaders. It proves these men are for sale to the highest bidder and the defense and aerospace industry happens to be the highest bidder when it comes to closing the SBA.
Look at President Obama's justification for closing the SBA. He claimed $300 million a year can be saved in combining the SBA and Department of Commerce. Think of it this way, the SBA budget is a mere .001 percent of the Pentagon budget. The Pentagon's own auditors have found the Pentagon cannot account for over 25 percent of their expenditures. That comes out to over $170 BILLION a year. The Pentagon loses enough money in a single business day to run the SBA for a year.
President Obama's claim that a paltry $300 million a year can be saved by closing the SBA seems ludicrous in comparison to the staggering volume of our tax dollars the Pentagon loses.
Another example of the absurdity of Obama's claim that $300 million a year can be saved by closing the SBA can be seen in his Power Africa program. At the same time President Obama wants to close the only agency in government to assist the small businesses that create over 90 percent of net new jobs, he plans to spend $7 BILLION to build power plants in Africa.
What percentage of Americans would agree with me that it makes no sense to close the only agency in Washington to assist small businesses to save $300 million and then spend enough money to run the SBA for a decade by building power plants in Africa?
What percentage of Americans would think it makes sense to close the agency that manages the two biggest federal programs in our nation's history assisting America's 28 million small businesses in order to save $300 million and then continues to allow the Pentagon to lose that much money every day before lunch?
President Obama will probably succeed in closing the SBA where Reagan failed. Obama learned a valuable lesson from Reagan, it's difficult, if not impossible to CLOSE the SBA but it is much easier to "streamline government" by "combining agencies."
So when Ronald Reagan proposed combining the SBA and the Department of Commerce he was "closing" the agency, but when President Obama adopts the exact same plan, it's "streamlining government."
The last thing that President Obama's plan to close the SBA proves is that not only have our political leaders let us down and sold out the small businesses that are the undeniable engine of our national economy, it also proves the mainstream media has also let us down.
President Obama will be allowed to end all federal programs to assist America's top job creators because the irrefutable truth behind his plan to close the SBA has not been and will never be mentioned in the mainstream media.
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