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