I predicted President Obama would resurrect Ronald Reagan’s plan to permanently close the Small Business Administration (SBA) by combining it with the Department of Commerce in November of 2008.
In addition to being a conspiracy nut, I’m apparently also clairvoyant because that is exactly what the President announced he planned to do in January of 2012.
I think it’s fascinating that not one journalist in America contacted me and asked me how I knew. I’m also astonished that, so far, not one journalist has reported that President Obama’s plan to “streamline government” by combing the SBA and the Department of Commerce is identical to Ronald Reagan’s plan to permanently “close the SBA.”
President Obama’s staff must have seen the TV news reports from 1985, that showed the violent opposition most members of Congress had to Reagan’s plan to close the SBA. Senators like Carl Levin, Lowell Weicker and James Sasser pounded Reagan’s budget director David Stockman as he testified before Congress to push for the closure of the SBA.
Journalists like Peter Jennings, Tom Brokaw, Irvin R. Levine and Ann Compton covered the story for the prime time news.
Because of the overwhelming opposition in Congress and the attention the issue received from the mainstream media, Regan’s plan to close the SBA failed. Thank God it did, as a result over the following three decades, millions of small businesses were allowed to get their start with SBA-backed loans and compete for the 23 percent of all federal contracts that are required by law to be awarded to small businesses.
Apple Inc. and Federal Express are just two household names that got their start with help from the SBA.
Fast forward to 2013. I have lost count on the number of press releases and blogs I have written trying to sound the alarm about the impending doom for the only agency in government to assist the 28 million small businesses where most Americans work that create over 90 percent of net new jobs.
Not one journalist has reported that President Obama’s plan to close the SBA, or should we say “streamline government” is identical in every way to Ronald Reagan’s plan to close the SBA.
There hasn’t been a word out of a single member of Congress objecting to the pending closure of the tiny federal agency that has helped to launch millions of small businesses. Why?
Here is the single most astonishing thing about this whole issue; I am the only person in the United States of America that has voiced any objection to closing the SBA. Where are all these national organizations that claim to represent the interests of American small businesses? The National Federation of Independent Business (NFIB) claims to be the “voice of small business in America.” So far, their voice has been silent. What about the U.S. Chamber, the American Small Business Chamber of Commerce or the National Small Business Association? They haven’t said a word. No press releases, no TV appearances, no blogs, no nothing. Why?
I predict in a few weeks we will see the SBA shutdown permanently as part of the budget deal. Obama says we can save $300 million a year by combing the SBA with the Department of Commerce. That’s ludicrous. The SBA budget is a measly .001% of the Pentagon budget. The Pentagon’s own auditors have admitted the Pentagon cannot account for 25 percent of their $700 billion annual budget. That works out to about $700 million a day during the workweek. That means the Pentagon loses more money every day, before lunch, than President Obama claims he can save in a year by closing the SBA. It means the Pentagon loses enough money each and every day to run the SBA at their current budget for a full year.
If you were trying to trim the federal budget and you knew the Pentagon could not account for roughly $175 billion a year, would it ever cross your mind to close the SBA to save a paltry, measly, miniscule, infinitesimal $300 million a year? I think not.
Here is what I think. Since President Obama was elected, a long series of federal investigations and investigative reports have come out that have uncovered widespread fraud in federal small business contracting programs. Federal investigators have found, every month, billions of dollars in government small business contracts have actually gone to some of the largest companies in the world.
The SBA’s own data show that last year 235 Fortune 500 firms landed billions of dollars in federal small business contracts.
Is it possible President Obama is being pressured by Fortune 500 firms to close the SBA so they can get 100 percent of all federal spending?
I did accurately predict President Obama would revive Reagan’s plan to close the SBA over three years before he announced it. I have also won around 30 legal battles in federal court in the last few years under the Freedom of Information Act. Entrepreneur Magazine did compare me to a “modern day Cesar Chavez.”
So let’s wait and see what happens in the next few days and weeks. Either I will be proven to be a conspiracy nut or the only real advocate for small businesses in America.
If the latter turns out to be true, I will be expecting an apology and a very positive story from every journalist that has refused to report on this very important issue.
Public domain photo from Wikimedia Commons.