More

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

Lloyd Chapman

Posted: December 3, 2010 08:28 PM

On Friday, the U.S. Department of Labor announced the national unemployment rate jumped to 9.8 percent in November. The figure marks a seven-month high, and an increase from 9.6 percent in October. Despite consistently high unemployment and a stagnant economy, the Obama Administration continues to allow the diversion of billions of dollars a month in federal small business contracts to large businesses.

Small businesses are the backbone of the nation's economy. According to the U.S. Census Bureau, small businesses are responsible for more than 90 percent of net new jobs, 50.2 percent of the non-farm private sector workforce, 50 percent of the gross domestic product (GDP) and 90 percent of exports and innovations.

More than a dozen federal investigations have uncovered the diversion of billions of dollars a month in federal small business contracts to corporate giants. In Report 5-15, the Small Business Administration Office of Inspector General (SBA IG) described the issue as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today."

Despite promising to end the abuse in February of 2008, the Obama Administration's most recent contracting data indicates the recipients of federal small business contracts include: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computer, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in South Korea, and the Italian firm Finmeccanica SpA.

The American Small Business League (ASBL) estimates that during the Obama Administration over $300 billion in federal contracts earmarked for small businesses have been diverted to corporate giants.

This abuse is destroying our economy, and yet the Obama Administration is refusing to take action. It's irresponsible. Ending the diversion of federal small business contracts to Fortune 500 firms would do more to stimulate the middle class economy, and create jobs than anything President Obama has proposed to date.

 

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

 
 
  • Comments
  • 18
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
This user has chosen to opt out of the Badges program
photo
drsolo
Progressive Wisconsin
09:34 AM on 12/04/2010
I think Olbermann did a story on how the definition of "small business" is not what we think it is. A small business is defined by how many OWNERS there are. I think Dell is a private company with limited "owners".

There is also the problem of the civil servants who operated most gov ' agencies. After 10 years of Bush they packed the jobs with their people so their policies would continue.
photo
HUFFPOST BLOGGER
Lloyd Chapman
President of the American Small Business League
12:53 PM on 12/15/2010
Olbermann did do a piece on large corporations being counted as small businesses for tax purposes. It is not reasonable that there is no accountability in our government's programs for small businesses!
photo
HUFFPOST SUPER USER
lpharless2000
Live . . . Laugh . . . Love
07:49 AM on 12/04/2010
Unemployment rises as Obama administration keeps giving small business funds to corporate giants. This is the headline of the article.

Proof, yet again, that the federal government is inept in its redistribution of wealth ideology.

Another good reason not to raise taxes on anyone during a recession.
photo
HUFFPOST BLOGGER
Lloyd Chapman
President of the American Small Business League
12:54 PM on 12/15/2010
The best thing the Obama Administration could do to stimulate the economy, and create jobs would be to stop the diversion of more than $100 billion a year in federal small business contracts to corporate giants. We've estimated that this alone would create upwards of 1.8 million jobs.
photo
Enroh Mot
Veritas Lux Mea
07:21 AM on 12/04/2010
Obama is torn between serving his corporate bosses and satisfying his knowledgeable base, the Republicans don't have this problem, they serve their corporate bosses, but their base is too dumb to know what's going on, many actually think that America is drifting towards Socialism, how dumb is that.
07:14 AM on 12/04/2010
YES, a Shopping Cart Becomes Housing Start

Before anyones decides to Hobo UP and ride the rails, check out an EDAR,
(Everyone Deserves a Roof). I did and I must say this Hobo Codo has everything except power and water.

The EDAR, is a four-wheeled, tent-like home that’s designed to be waterproof, sturdy and mobile.
Each unit is equipped with a mattress and a sleeping bag for comfort. An integral braking system keeps the unit from rolling away, and a padlock is included to prevent theft.

At night, the EDAR unit easily hinges out and down to Night Mode in less than 30 seconds, becoming a sleeping unit. The metal and wood base has a mattress and military-grade canvas cover, providing a robust tent-like shelter. The unit is flame-retardant, waterproof, windproof and helps protect from the elements.

Artist Country Carl dot com of the 99ers New Depression Blues Video,
Hpoefully you won't have to HOBO UP!
http://www.youtube.com/watch?v=tM6CuCjUTdk
This user has chosen to opt out of the Badges program
photo
11:06 PM on 12/03/2010
and again--which is so strange given the lack of action on this site:

Lloyd, when will one of your stories on this be the lead on the front page?

It tells the real tale of how Obama has capitulate­­d to the oligarchs and cares nothing for the middle class or the jobs we need.

Keep up the good work.Maybe someone of consequence will actually read one, someday, and do the right thing.
photo
HUFFPOST BLOGGER
Lloyd Chapman
President of the American Small Business League
12:56 PM on 12/15/2010
Thank you for your comment. That's a great question... every day we work hard to get this issue in front of the right people. We'll keep going until we do, and the government stops giving federal small business contracts to corporate giants.
This user has chosen to opt out of the Badges program
photo
11:03 PM on 12/03/2010
Arianna, cut me some slack.

Chapman is one of the best bloggers you have and his stuff never goes front and center where it belongs. And censoring my opinion about it is just 'bush' league.
photo
HUFFPOST BLOGGER
Lloyd Chapman
President of the American Small Business League
12:57 PM on 12/15/2010
Thank you again for your support! We need more people who see this issue through your eyes...
HUFFPOST SUPER USER
NAMI
Je juge , donc je suis
10:39 PM on 12/03/2010
DO you know how many so called SMALL businesses went bankrupt since 1980 ?

or since 2000 ?
HUFFPOST SUPER USER
NAMI
Je juge , donc je suis
10:37 PM on 12/03/2010
Unfortunately, JOBS are GONE.................to create Middle Class OVERSEAS China, India Mexico Vietnam
they will not come back,
BUSinsess people know that JOBS are GONE................and some jobs will not be created Until there is DEMAND .......which means UNTIL PEOPLE FEEL RICH again..and want to spend not save !!
WHERE ARE THE JOBS ! ....... GONE OVERSEAS thanks to Globalization.
JOBLessness is HERE to stay for a long long while.
09:31 AM on 12/04/2010
But this has been made vastly worse artificially. China has ten times the population of Japan in roughly the same land area as the US. Setting its currency at half value as they did, then pegging it to the US dollar was economic warfare against the US and a way of making China's development a zero sum game with the rest of the world. If currencies aren't free traded, nothing else is. It's not sustainable but has bled out the US to a point that threatens its own status as a developed country going forwards and may threaten its independence in time. We are close to a Tributary State now. It's the cause of Mexico's economic implosion, NAFTA's failure, and why we have so many new neighbors (we would do the same in their place).

Bush pawned his country in China to fund vainglorious dreams of significance in war, politics, and social change. All but the last failed. The US has actually undeveloped and its economy is distorted by a hyped standard of living on the tab. China won and the transfer of wealth and tech there is the result. Now US corporations have more assets and IP offshore than here. Their political donations are foreign money.

Obama's export drive is getting some results. But it will take more than that.

What's your plan?
HUFFPOST SUPER USER
NAMI
Je juge , donc je suis
10:49 AM on 12/04/2010
Maguro1 your reply reinforces my main point which is that it was the POLICIES decided upon in the last 20 years that have led us to.................TODAY's MESS
America had everything going fo it...............bcame the only Superpower .that should have ushured better era and for a while it did because we had PEACE.
Then the Deregulation allowed creation of BUBBLEs and of course all these decisions were for some to MAKE MILLIONS and others to lose their Homes and Savings.
So
As for your question for my PLAN ?

I just know that . FIRST we have to recognize that BAD decisions were made , because they were ANTI-America and Anti -Americans and PRO- financial Oligarchs

but with the LACK of HONEST discourse and a divided people there is a stalemate.

The most important PLAN we can have is TO CREATE JOBS........but i cannot do that.
JOBS are everything.
and yes the export idea is good for jobs..........Actually the idea of Globalization was in the hope that the WORLD would grow and China and India would have a middle class and threy would buy Amercan products .............made in China etc....
This user has chosen to opt out of the Badges program
photo
09:36 PM on 12/03/2010
Lloyd, when will H Pee make one of your stories on this the lead on the front page?

It tells the real tale of how Obama has capitulated to the oligarchs and cares nothing for the middle class or the jobe we need.

Keep up the good work.Maybe Ari Annna will actually read one, someday, and do the right thing.
09:29 PM on 12/03/2010
Small businesses need help. A friend had to close an auto repair shop in Oakland.Three employees there are also out of work.
HUFFPOST SUPER USER
NAMI
Je juge , donc je suis
11:00 AM on 12/04/2010
Jvswag..........sure real small businesses need help................ONE good help they could have gotten is IF the MEDICARE FOR ALL ........... called B L U Medicare
THAT would have helped ALL Businesses and all the American People.
your friend probably does not give Health benefits., but at least he and his employees would b happy to have a Medicare card even if they do not have jobs

it is only

DEMAND ie people having $$$$$$$ that can be COMSUMERS that can help his repair shop.
photo
HUFFPOST BLOGGER
Lloyd Chapman
President of the American Small Business League
01:01 PM on 12/15/2010
You're right. Thank you for your comment. Small businesses do need help. There are many things the government could be doing to help small businesses. The question is... when is the government going to start listening to the people? And when is the small business community going to band together and demand action. We need people like you and your friend to keep commenting, and to get involved with or movement towards action for small businesses!