This week the Wall Street Journal asked whether or not the Small Business Administration should be abolished. The WSJ then allowed Koch brothers mouthpiece, Veronique de Rugy, to comment. It's fascinating the way these snakes go after one of the smallest agencies in Washington -- with a budget that is less than 1 percent of the Pentagon budget. But I'll tell you why the Kochs, Ms. de Rugy and every other big-business advocate wants to close the SBA. It's because large businesses want every last penny the government spends. These people are poison to our economy.
The corporate giants that rule Washington and are receiving the lion's share of federal contracts have had their sights set on the SBA for years, as it is the only agency standing in their way. The federal government is legally required to award 23 percent of all federal contract dollars to small businesses, which amounts to more than $100 billion dollars per year. Fortune 500 firms want it all and will stop at nothing to get it.
Moreover, in the past 10 years, more than a dozen federal investigations have found that billions of dollars per month in federal contracts that legally should be awarded to small businesses have been diverted to Fortune 500 firms in the U.S. and some of the biggest companies worldwide. This well documented fraud and abuse would be swept under the rug with the destruction of the SBA. Some of the firms that have received small business contracts in the last five years include Lockheed Martin, Boeing, Raytheon, Walmart, Apple Inc, Bank of America and even a subsidiary of News Corporation, the company that owns the Wall Street Journal.
Closing the SBA is not about saving money, streamlining government or balancing the budget. It's about ending all federal programs for small businesses, including woman-owned, minority-owned and veteran-owned businesses.
Let's look at it logically. According to the U.S. Census Bureau, small businesses create more than 90 percent of all new jobs. The non-partisan Kauffman Foundation published a study finding that since 1980, small businesses have create 100 percent of all net new jobs. Additionally, small businesses employ more than half the private sector workforce, generate more than half the GDP and are responsible for 90 percent of all U.S. exports. Now big-business advocates like Veronica de Rugy, and even President Obama, want to close the only agency in Washington created to help the 28 million small businesses where most American's work -- it's insanity.
Make no mistake -- anyone that talks about closing the SBA is anti-small business and is simply marching to the beat of the Fortune 500 firms that unfortunately have tremendous control over Congress. This will completely destroy our economy. The worst thing that we could possibly do at any time, particularly now, is to close the SBA and end programs designed to help small businesses. Again, these people are poison, and closing the SBA is pure insanity.