Apr 13, 2009
Simple Solution to Stimulate Economy
President Barack Obama is a smart man, and he has no doubt surrounded himself with a multitude of well-educated and extremely intelligent individuals.(????) With that in mind, it is difficult to understand why he has consistently ignored some of the most fundamental principals of the U.S. economy, and the suggestions of some of our nation's leading economic experts in drafting his stimulus plan.
President Obama's stimulus plan ignores the fact that 98 percent of all firms in the United States have less than 100 employees. Over 26 million firms fall into that category. They employ approximately 50.4 percent of the private sector workforce and create over 80 percent of all new jobs in America. These firms are responsible for over 90 percent of all U.S. exports and over 90 percent of all technological innovation in America. Large businesses on the other hand, have not created one net new job in America since 1977.
When Congress passed the Small Business Act in 1953, its members realized what President Obama seems to have missed, that small businesses are the heart and soul of the U.S. economy. The Small Business Act was an economic stimulus plan, and it worked. Existing federal law states that a minimum of 23 percent of the total value of all federal contracts and subcontracts shall be awarded to small businesses. In the hast to spend the trillions, the small business percentage is being repressed and overlooked in an effort to come to the aid of troubled BIG businesses.
So far, nothing President Obama has proposed to stimulate our nation's failing economy would be as effective and cost efficient as simply adopting policies and legislation that would redirect over $100 billion, year-after-year, back into the middle class economy.
If President Obama sincerely wants to create jobs and stimulate the national economy he needs to start by making good on a campaign promise he made in February of 2008 when he 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."