THE BLOG
03/10/2009 05:32 pm ET Updated May 25, 2011

Obama Economic Policy Falters Without Small Business Stimulus, According to ASBL

The American Small Business League (ASBL) released the following today:

Petaluma, Calif. - Since President Barack Obama signed the stimulus bill, the Dow has dropped to a 12-year low and unemployment has jumped to a 25-year high. The most recent U.S. Census Bureau statistics could be the key to understanding why President Obama's economic stimulus bill hasn't worked so far and may never achieve its intended goal of creating millions of new jobs.

According to the most recent data, 98 percent of all U.S. firms have less than 100 employees. These firms are responsible for 98 percent of all new jobs in America and employ 50.2 percent of the private sector workforce. American small businesses are responsible for over 97 percent of all exported goods and generate the majority of innovations that come from the United States.

Not one dollar of the $2.3 trillion in economic stimulus funds will go to the 27 million small businesses where most Americans work. One hundred percent of the stimulus bill funds not destined for states, will go to the top 1 percent of U.S. firms. The firms in that top 1 percent have not created one net new job in America since 1977.

In addition to ignoring small businesses, which are the nation's top job creators in the stimulus bill, President Obama has refused to stop rampant fraud and abuse in existing federal economic stimulus programs for small businesses. During the Bush Administration, a series of over a dozen federal investigations found hundreds of billions of dollars in federal small business contracts were diverted to Fortune 500 firms. Millions of small businesses were adversely affected and thousands of hardworking small businesses were forced to close their doors as a result of the fraud and abuse. (http://www.asbl.com/documentlibrary.html)

President Obama acknowledged the magnitude of the problems in government small business programs in February of 2008 when he released the statement, "It is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)

To date, President Obama has refused to make good on his campaign promise, by proposing policies to stop the fraud and abuse that have crippled federal economic stimulus programs for small businesses.

Things could get even worse for the economy and small business under the Obama Administration. President Obama has confirmed he will raise taxes on small business owners, and he is expected to support new loopholes in federal contracting law that will divert billions more in federal small business contracts away from the middle class and into the hands of wealthy venture capitalists that contributed heavily to his campaign.