Imagine that you're President Obama and one of your economic advisers tells you that you can create millions of jobs without raising or cutting taxes and without any additional spending. Now imagine that same adviser telling you that you already know what the plan is, and in fact, you promised to fulfill it during your presidential campaign.
In February 2008, Barack Obama stated, "Small businesses are the backbone of our nation's economy and we must protect this great resource. It is time to end the diversion of federal small business contracts to corporate giants."
Every year billions of dollars in federal contracts awarded to companies like Lockheed Martin, General Electric and British Aerospace are recorded as small business contracts, which helps the government appear to be trying to hit its congressionally mandated 23 percent small business contracting goal. During FY 2010, 60 of the top 100 small business federal contractors were actually large businesses. It costs a fortune to win an election, even more to stay in office, and big companies have funds to foot the bill. There are enough of these contracts to buy the House and the Senate, which is at the root of the problem.
Without money or lobbying power, even the most vigilant small businesses barely stand a chance, and it's killing the middle class. There is irrefutable proof that small businesses create virtually all net new jobs. According to data from the U.S. Census Bureau, since 1989, small businesses have created 90 percent of all net new jobs. Large businesses destroyed more jobs than they created almost every year from 2000 to 2008. The Kauffman Foundation says that young firms, which are also small, have created virtually 100 percent of all net new jobs since 1980.
Congress understood this in 1953 when they passed the Small Business Act, which remains the statutory mandate that the federal government award 23 percent of contracts to legitimate small businesses. Unfortunately, that goal might as well be in outer space. The federal government has never come close. It is difficult to pin down the actual federal acquisition budget, but it seems to be about $1 trillion, which means small businesses should receive about $230 billion annually. Based on data the American Small Business League (ASBL) has collected through the Freedom of Information Act and by simply looking at the federal government's own publicly available data, we estimate that small businesses are receiving closer to $50 billion annually.
The federal government is the largest purchaser of goods and services in the world. Small businesses need those contracts, not the tax cuts proposed in the president's jobs bill. If you own a business and the government cuts your payroll tax, you're not going to hire more employees. Tax cuts don't create demand. You're going to hire more employees when demand goes up, which is where the federal government could work wonders for the economy by directing federal contracts to small business, where all the jobs are created.
I drafted legislation that would finally stop the government from spending in all the wrong places. The bill is H.R. 3184, "The Fairness and Transparency in Contracting Act of 2011," and was introduced in the House by Georgia Congressman Hank Johnson. The Small Business Act says that to be considered small, a business must be independently owned, which means not publicly traded. H.R. 3184 would prevent any publicly traded company from receiving small business contracts.
If President Obama really wants to create jobs, he'll stick to his campaign promise and support H.R. 3184, or he will issue an executive order that simply states, "The federal government will no longer report contracts awarded to publicly traded companies as small business contracts." That would create more jobs and do more to save our devastated economy than anything he has ever proposed.
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Here is the link: http://www.kauffman.org/newsroom/u-s-job-growth-driven-entirely-by-startups.aspx
"When it comes to U.S. job growth, startup companies aren’t everything. They’re the only thing."
To create jobs without adding to the deficit, all concerned must do just three things:
1. Repatriate the $1 Trillion already earned from US corporations overseas at ZERO rate, provided that HALF of the 35% that would have been levied as tax, be used to fund GRANTS for STARTUP companies.
2. The Startups companies that will be funded with GRANTS (not loans) and long-term tax incentives must have patented products that are truly needed worldwide.
3. The Startup companies must VOW to keep jobs in the USA.
Here's one Startup that vows to keep ALL jobs it creates in the USA, sustained by exports of its innovative and vital product worldwide: http://www.youtube.com/watch?v=csa459eSZr8
By doing this millions of long-term, stable and well-paying jobs for poor and middle-class Americans will be created virtually overnight, powered by innovation and patriotism.
Small businesses are not the primary (much less the majority) contributors to net job creation. At least not in this country...
http://stlouisfed.org/publications/re/articles/?id=2087
Babylon .. Greece .. Rome .. Persia .. Britannia .. The United States .. every nation in its turn realizes that "global conquest" is unattainably expensive.
Would be consumers with extra money in their pockets CREATE all the jobs.
Eisenhower was right when he said to fear the military running the country, which it now does through the prime defense contractors now.
There is a solution to the jobs problem and it could quickly put hundreds of thousands of people back to work. It is not pro left or right. It is not from any corporation, it's outside the government control, it's totally voluntary, works in about one week, and helps all with little sacrifice from anyone.
National Hiring Day - This is a day that corporations are encouraged to hire new employees. Corporations are called on to put patriotism first and help their country in
hard times. Those corporations that cannot hire, are asked to stop firing for that month.
http://wp.me/p5S9X-nv
By hiring one person now, a business gets thousands of customers with new jobs and buying power in return. Businesses across the country, give a little now to get a lot in return.
There has never been a time In American History where hiring people would hurt corporations less, and help the country more.
Republicans should love this because it's outside the government and voluntary. Democrats should love this because it helps those needing jobs. Independents should love it because it helps all with little sacrifice from any one corporation, group, or person. Corporations should love this because with just a hire or two they become part of a collective country wide jump start of the economy.
“A friend who is a numbers phenom, looked at all the numbers of these corporations and small businesses. He discovered that were all the large corporations just to hire .5% of their work force and most businesses with fewer than 50 employees to hire one employee and those with up to 500 add two or three, then the unemployment problem would be back down to the place where people would feel there is hope. Just a few jobs, from all these companies which are sitting on over two trillion in cash, yes that is what corporations in the U. S. have in cash, publicized and added could get us on the way to a situation where people could heal their financial pictures and the country could have HOPE. - TEXFemmom
Even if it wanted to, U.S. can’t pull off Canadian-style ‘fiscal miracle’ - The Globe and Mail http://bit.ly/tRKj1C
Contractors are small businesses they build bridges, road and other infustracture needs.
Their employees spend money in the town they are working.