A recent Gallup poll showed President Obama’s approval rating on handling the economy has plunged to just 35 percent. A series of polls have all found the single most important issue to American voters is the economy.
So what can President Obama do to rescue his poll numbers and the lagging middle class economy?
I have a suggestion. President Obama should keep a campaign promise he made to the nation’s 28 million small businesses in February of 2008 when he stated, “It’s time to end the diversion of federal small business contracts to corporate giants.”
President Obama released that statement after his campaign staff reviewed a series of federal investigations that found, every year for over a decade, billions of dollars in federal small business contracts were diverted to many of the largest corporations in the world.
They saw the 2005 investigation from the SBA Office of Inspector General Report 5-15 that described the diversion of federal small business contracts to corporate giants as, “One of the most important challenges facing the Small Business Administration and the entire federal government today.”
If he did keep his promise, I think it would increase his approval ratings and, most importantly, supercharge the middle class and create millions of jobs. Let’s look at the facts.
According to the U.S. Census Bureau, over 98 percent of all U.S. firms have less than 100 employees and 89 percent have less than 20 employees. America’s 28 million small businesses are responsible for over 90 percent of the net new jobs in America, over 50 percent of the private sector work force, over 50 percent of the GDP and over 90 percent of U.S. exporters.
The largest and oldest economic stimulus plan to create jobs for the middle class is the Small Business Act that stipulates that a minimum of 23 percent of all federal contracts be awarded to small businesses.
After investigating the SBA, the Government Accountability Office released Report 10-108 that stated, “By failing to hold firms accountable, SBA and contracting agencies have sent a message to the contracting community that there is no punishment or consequences for committing fraud.”
There is a simple way for President Obama to keep his campaign promise as well as create millions of jobs, supercharge the middle class economy and boost his poll numbers. He needs to pass H.R.1622, the “Fairness and Transparency in Contracting Act.” H.R. 1622 is a free and easy way to end the diversion of federal small business contracts to corporate giants. H.R. 1622 requires no new spending and no new taxes. It will “end the diversion of federal small business contracts to corporate giants,” as President Obama promised and redirect billions of dollars in existing federal infrastructure spending to the middle class. Win, win and win.
Here’s the latest video from the ASBL.