Creating jobs in America is very simple if you look at the data from the U.S. Census Bureau.
According to the latest information from the U.S. Census Bureau, small businesses are responsible for more than 90 percent of all the net new jobs in America. Government data also shows us that small businesses are responsible for over half the Gross Domestic Product, over half the private sector workforce, and over 90 percent of all U.S. exporters are small businesses. A study by the Kauffman Foundation found that small businesses are responsible for virtually 100 percent of the net new jobs in America since 1980.
Let's see if we can figure this out. Small businesses are responsible for over 90 percent of all net new jobs. We're trying to create job. It seems like we need to do something for small businesses.
I've got an idea: How about a federal program that directs federal infrastructure spending to the 28 million small businesses? Let's try that. Oh wait a minute -- someone's already come up with that -- Congress passed the Small Business Act in 1953 that mandated that a fair portion of the total value of all federal contracts be awarded to small businesses. Today that fair portion is 23 percent. That makes sense. In fact, in my mind, the Small Business Act of 1953 was the most effective economic stimulus program in U.S. history.
The problem is that since 2003, over a dozen federal investigations have all found the same thing -- that every year a major portion of the federal contracts that by law should be going to the 28 small businesses where all the jobs are created have been diverted to some of the biggest companies in the world.
Stories in the Washington Post, the New York Times, the LA Times, the Miami Herald, and ABC, NBC, CBS and CNN have all found the same thing. Some of the firms that have received federal small business contracts include, Lockheed Martin, Raytheon, Boeing, AT&T, Dell, Home Depot and Rockwell Collins.
And not only are some of the biggest companies in America getting small business contracts, we're talking worldwide corporate giants, such as Rolls-Royce, Thales and Finmeccanica. Even Rosoboronexport, a Russian arms dealer owned by the Russian government, received over $370 million in federal small business contracts.
Who does this make sense to? Who in the world does this make sense to? If we took a survey of all the people in America and asked whether or not, in the middle of the worst economic downturn in 80 years, our government should be giving contracts meant for small businesses to a company owned by the Russian government, what do you think they would say? What about President Obama's supporters? Would George Clooney, Oprah and Barbra Streisand think we should be giving federal small business contracts to corporate giants around the world? I don't think so. I think 100 percent of America would agree with me -- that it's insane -- it's lunacy.
And it's not just me. President Obama realized the magnitude of the problem in 2008 when he came out and said, "It's time to end the diversion of federal small business contracts to corporate giants." He was right -- it is time.
So it's real simple: no matter who you are or what you think, it is irrefutable that small businesses are responsible for the overwhelming majority of net new jobs. All we have to do to create jobs is focus economic stimulus programs on small businesses. In conclusion, if you want to create jobs, quit giving small business funds to corporate giants.