Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Lloyd Chapman

GET UPDATES FROM Lloyd Chapman
 

President Obama Succeeded in Duping the Media, Congress and the Public About His Plan to 'Streamline' Government

Posted: 01/17/12 10:07 AM ET

Obama has duped the public, the media and Congress with his latest proposal to 'streamline' government.

He talks about reducing the size of the federal government and increasing efficiency but it's all a scam.

It's an insult to taxpayers' intelligence to say that combining the SBA with the Department of Commerce and a few other agencies will 'streamline' the government. As any observer of federal government can tell you, the SBA is one of the smallest agencies in the federal government and has a miniscule budget. If the president was really interested in streamlining the government he would cut the larger, bloated agencies like the Pentagon.

The proposed merger that Obama announced on Friday is supposed to save the federal government $3 billion over the next decade, but that number is an infinitesimal amount to save over 10 years when rationalizing closing a crucial federal agency, especially when compared with the federal government's overall budget.

In the next decade, the Pentagon alone is projected to spend over $6 trillion dollars -- the $3 billion in savings proposed by the president's plan to merge the SBA with the Department of Commerce is equal to only .0005 percent of that.

I don't think any president in recent history has ever called a press conference to talk about cutting such a tiny portion of the federal budget.

That's because President Obama is not trying to shrink government with this proposed merger of the SBA. Here's what his real goal is:

As I predicted on Sept. 16, 2008, November 2010 and August 2011, President Obama's administration is attempting to wind down the Small Business Administration and all of its federal small business contracting programs.

The Small Business Act, a longstanding federal law that was established by Congress in 1953, says that 23 percent of all federal purchases must be with small businesses. This law is the most successful economic stimulus program the federal government has ever had, because it directs federal infrastructure spending to the nation's job creators.

However, ever since the Small Business Act was established big businesses have been working against its congressional mandate and trying to eliminate the 23 percent contracting goal, for one reason: Greed.

Big businesses, including some of the largest corporations in the world, actively seek to dismantle the Small Business Act, the Small Business Administration and its small business contracting programs because they want 100 percent of all federal contracts every year.

By dismantling federal programs that ensure women-owned, minority-owned, veteran-owned, and other small businesses receive federal infrastructure spending, large corporations can be guaranteed that 100 percent of all contracting dollars go to them.

This is the real goal behind President Obama's most recent move -- greed.

Obama knows that by doing this political favor for the corporations that dominate K Street and political lobbying contributions, he will in turn receive millions in campaign contributions from the defense and aerospace industry.

If you want to talk about shrinking government, the SBA is the last place to go. Unfortunately, because the president works for big businesses, his proposal to merge the SBA will actually end up completely shutting down the SBA and all of its programs, within five years.

That is my prediction -- with his proposal to consolidate federal agencies, President Obama has quietly proposed to eliminate the SBA and ensure that all of its federal small business contracting programs cease to exist within five years. His administration has even acknowledged that the consolidation move will eliminate between 1,000 and 2,000 jobs from the merged federal agencies.

So far not one reporter has figured out what President Obama's true motivation is.

It's a shame that no one has caught onto Obama's smoke and mirrors tactics yet -- he's been using them ever since he was elected.

For example, while President Obama, the nation's first African American president, was honoring Martin Luther King Jr. yesterday for his acclaimed and historic civil rights efforts, his administration is working to wind down the oldest and most successful program for minority job creation our nation has ever seen:

On Sept. 9, 2011, his administration published a notice in the Federal Register that they intend to eliminate a program that mandates that five percent of federal contracts be spent with minority-owned small businesses. The American Small Business League estimates this will cost minority-owned businesses between $25 and $50 billion in losses a year.

In conclusion, President Obama's proposal to merge six federal trade and commerce departments including the SBA, is not a plan to shrink government but a plan to end federal small business contracting programs.

Mark my words -- if he's successful, SBA and its programs are gone in five years.

This is a tragedy. In the midst of the worst U.S. economic downturn in 80 years, the president is proposing to take it out on our nation's job creators. Small businesses create 90 percent of all net new jobs, account for half of the GDP, employ half of the private sector workforce, and account for 90 percent of all U.S. exports.

To end federal programs that assist small businesses is economic suicide and the president should know better.

I only hope that someone in the mainstream media wakes up and sees the handwriting on the wall -- that there's enough attention to this tragedy for us to be able to stop President Obama from destroying the SBA.

 

Follow Lloyd Chapman on Twitter: www.twitter.com/LloydChapman

 
 
  • Comments
  • 34
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
Page: 1 2  Next ›  Last »  (2 total)
09:42 PM on 01/23/2012
"Yes we can?"
photo
banana republican
Next in line for crumbs from the King's Table
07:20 PM on 01/20/2012
Great article, Lloyd. And tks to HP for printing it, as its not the kind of discussion HP's mainstream consumers has a taste for.
12:57 AM on 01/18/2012
Mr. Chapman, he did not have me fooled, I posted almost the same story how this act would make the SBA useless, and how it would Not have any real savings, but cost more in the long run. If you read the posts in response to your story, you will see most people will not believe you.
09:17 PM on 01/17/2012
Maybe now the left hand will know what the right hand is doing.
mlp7595
sequester Marxism
03:35 PM on 01/17/2012
If Obama wants to streamline something, how about starting with the Dept of Energy. It was created by Carter in 1977 to lessen our dependence on foreign oil and now, 35 years later, the budget for this bloated government boondoggle is more than $29 billion a year with more than 16,000 federal employees and approximately 100,000 contract employees, and unbelievably, we are more dependent than ever on foreign oil. After the DOE is streamlined, let's move right to Obamacare, the EPA, DOL, DOC, NPR, funding for Planned Parenthood, and numerous other wasteful tax devouring government boondoogle agencies and programs. Then, and only then, tinker with the lone agency designed to help small business.
01:58 PM on 01/17/2012
So basically, you have no idea why Obama merged these agencies and elevated the chairperson of the SBA to his cabinet, and now you are trying to appeal to the "Everything Obama does is evil" crowd. Fair enough, but don't expect anyone but your target demographic to take this or anything else you write seriously. The funniest part of your article is when you openly ask why other people haven't figured this out. I don't know Lloyd, but maybe if Obama was actually in the pocket of big business, then he wouldn't have such a hard time dealing with congressional Republicans when they wanted to preserve the Bush tax cuts, strip the EPA, or repeal Dodd-Frank.

Maybe in the beginning of his term, you could get away with writing a bogus article like this where you depict Obama as some kind of foreign outsider who's intentions we don't know, but after 4 years where Obama has consistently looked out for the middle class when the Republicans were publicly trying to trash it at every turn, this article just looks ridiculous.
photo
hstdem
In search of the 4th Estate
02:48 PM on 01/17/2012
F & f.
photo
HUFFPOST BLOGGER
Lloyd Chapman
President of the American Small Business League
06:42 PM on 01/17/2012
While you may be playing into election rhetoric and interpreting what I write as unfounded "everything Obama does is evil" content, I instead am choosing to call things how they are. I was as critical of the Bush administration if you do your homework. And if you inspect the President's actions over the past four years, you will indeed find that he has been overwhelmingly anti-small business-- as have been most of our Representatives and Senators. Perhaps you'd like to make excuses for someone whom you have idealized but I tend to deal in facts. By combining the SBA with the Department of Commerce, the agency will lose power, if not all existing authority to help small businesses. Karen Mills' appointment is a ploy because the SBA will be gone in 90 days if the President has things his way. A majority of small business advocacy groups agree and we need to see some real change before I'll support your crush on the President. We are seeing political publicity and corporate influence trumping small business interests, as always, and yet you can't see past my honest criticism of what is being done wrong. Sorry to tread on your golden image of Mr. Obama, but I'd first like to see him help small businessses before I commend him as a saint. And don't whine to me about Congress and Republicans holding him back-- every President is tasked with dealing with a power-grubbing Congress, that's part of the whole system.
photo
BBackSoon
Hello, I must be going.
01:54 PM on 01/17/2012
Well you really hit the sweet spot with this article.

It is bad enough to not be believed, but yet not so bad as to require retort.

Kind of like reaching for mediocre and almost getting there.
photo
HUFFPOST BLOGGER
Lloyd Chapman
President of the American Small Business League
06:43 PM on 01/17/2012
Wow what incredible insight and intellect you lend us readers with your comments. Thanks for the helpful and knowledgeable thoughts.
photo
BBackSoon
Hello, I must be going.
09:54 AM on 01/18/2012
Right back at you.
mlp7595
sequester Marxism
01:28 PM on 01/17/2012
Chapman has it exactly right. I am surprised HP allowed it posted. The SBA is the one lone government agency that could potentially lead to the creation of some decent private sector jobs through loans set-asides etc. to actual job creators in the private sector and he, of course, wants to cut this one tiny agency. On the other hand, he wants to increase spending on Obamacare, the EPA, DOE, DOL, DOC, funding for Planned Parenthood, NPR, and numerous other wasteful tax devouring government boondoggle agencies and programs that create NOTHING but another voting block for liberal dems. These are the programs with the outrageous and useless spending. Cuts in these ponzi schemes could easily create savings way in excess of 300 billion PER YEAR.

We have had tax and spend socialism for more than 50 years and complete bankruptcy is the result. Keynesian economics is a complete and total failure as proved by the former Soviet Union. IT DOESN'T WORK. PERIOD. THERE IS NO MULTIPLIER EFFECT, ONLY A CHANGING HANDS EFFECT AND A DIVIDING EFFECT creating factions and dependent groups pitted against one another. More of the same WILL NOT WORK. Until there are severe and long lasting SPENDING CUTS WITH NO NEW TAXES nothing can improve.
01:13 PM on 01/17/2012
Way to go Mr. Chapman. There arent to many articles in the huffpost where the truth is told about the presidents real agenda and his dishonesty. Im surprised you succeeded in getting this story told.
photo
hstdem
In search of the 4th Estate
01:47 PM on 01/17/2012
The president's real agenda and dishonesty?

Where in this article does the author have evidence to prove his opinion? This article is a simple slam at the president without any proof or sense.

If the president discovered a cure for cancer, you and your kind would probably complain that the chemo and radiology people will be out of a job!

Unbelievable.
12:32 PM on 01/17/2012
Obama forgets that small businesses are the ones that are growing and also the ones who hire, create jobs and pay taxes. Big companies lay workers off and pay lobbyists for Congress protection. Of course, small businesses do not have representation on K street. Microsoft did not for the first 25 years if its existence and then, realized that they had to join that fray. Not having K street contacts is damaging since Congress does not hear your voice thru estate dwelling Potomac and McLean lobbyists.
12:18 PM on 01/17/2012
Merging superfluous government agencies leads invariably to laying off overpaid public bullies... I mean: public servants! If Obama succeeds in cutting the number of agencies, it is good. However putting thousands of government employees on the unemployment payroll is going to cost budget and votes. Is there an election coming this year? Or is this agency merging deal one that keeps the same number of federal employees? So where are the savings? Here, our beloved and esteemed Obama is mendacious.
photo
hstdem
In search of the 4th Estate
01:10 PM on 01/17/2012
The president promised to make government smarter during his campaign.

The president specifically said he would do this at the beginning of last year.
Linda from Deerfield
Paying attention
12:05 PM on 01/17/2012
Let us hope that these moves are able to correct the indefensible granting of business to large corporations under the guise (or should I say ruse) of small business support.
11:51 AM on 01/17/2012
Judging from some of the posts, if you criticize this administration you're wrong, period. What this writer has put together is accurate. Read what he says, compare the numbers the actually exist, not only was the press conference called for basically nothing in terms of solving our debt crisis, but it was also a forum to promote elimination of programs that have helped millions of employees of small companies.
11:38 AM on 01/17/2012
"In the next decade, the Pentagon alone is projected to spend over $6 trillion dollars -- the $3 billion in savings proposed by the president's plan to merge the SBA with the Department of Commerce is equal to only .0005 percent of that."

$3 billion/$6 trillion = 0.05%, not 0.0005%

With math skills like this, Mr. Chapman deserves NO credibility whatsoever. His math is not even as good as the politicians' he has the temerity to criticize. Has ne thought about a janitorial career?
04:10 PM on 01/17/2012
A shot a janitors? Not very liberal of you.
05:04 PM on 01/17/2012
Your math is off!! .05% of $6 Trillion is $30 billion not 3 Billion!! The correct answer is .005%!!
photo
hstdem
In search of the 4th Estate
11:36 AM on 01/17/2012
Wow- you don't pay attention very much.

It is common knowledge that the business community does not like the president. Their donations to his campaign- whatt YOU say is his supposed motive- have all but disappeared because they don't like his policies and he hurt their feelings.

You are very mistaken about the president's attempt to combine agencies- NOT to eliminate them. It would be political suicide to alienate small businesses. That is why this proposal is GOOD for small businesses. If it weren't, why would small business owners who were in the audience advocate for and applaud this?

I'm not sure what YOUR motive is, but it sure doesn't seem to be honesty in government and media. Perhaps you need to study up (listen to his speech again) on this proposal.