The American Recovery and Redistribution of Wealth Act of 2009

Here is a link the House of Representatives Discussion of THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009

Here is the rhetoric from that act about small business

Small businesses are the driving force for new jobs in the economy; 60 to 80 percent of net new jobs created since the mid-1990’s have been created by small businesses. However, small business lending is sharply down. Loan approvals in SBA’s general business loan programs declined 42 percent in the first quarter of FY 2009 compared to the first quarter of FY 2008. Loans guaranteed under the 7(a) business loan program declined 30 percent in terms of number of loans and 11 percent in dollar volume from FY 2007 to FY 2008. In addition, disruptions in the secondary market have caused major lenders to stop accepting business loan applications. The provisions in this bill will help to reverse these trends.

Here is Obama’s Rhetoric:

Now, this recovery plan alone will not solve all the problems that led us into this crisis. We must also work with the same sense of urgency to stabilize and repair the financial system we all depend on. That means using our full arsenal of tools to get credit flowing again to families and business, while restoring confidence in our markets.

Here is the amount of the $750 Billion Stimulus Package that is going to Free Up Credit for Small Business, The Engine of JOB Growth in our economy

Funding would be made available for new loan guarantee and direct lending authorities. Of the $430 million total, $426 million is for credit subsidy costs and $4 million is for administrative costs.

Here is the amount going to Food Stamps:

Help Workers Hurt by the Economy: High unemployment and rising costs have outpaced Americans’ paychecks. The bill helps struggling families make ends meet by providing $20 billion to increase the food stamp benefit by over 13%, in order to help defray rising food costs.

Looks like the plan is to stimulate the economy by investing in BIG government, and entitlements and the spending that will be created will stimulate the economy enough to rev up the engine of job production (Small Business). Isn’t this a little arse backwards? Maybe it would work better if we actually got the engine working first – and then it might not be necessary to spend twenty billion on food stamps- I wonder what would happen if we reversed just that one proportion? If twenty billion went to providing loans to small businesses to stimulate the job growth with which small business is credited in all the rhetoric, and then as a consequence maybe $430 million for food stamps would suffice?

This is just one example of what is wrong with this plan, which Obama is trying to tell us we must not waste time in passing – How about if We The People analyze this and let our representatives know what we think of it BEFORE THIS BILL IS PASSED.

There is 7.7 Billion slated to modernize federal buildings. Despite the rhetoric about small businesses (under 200 employees) – How likely is it that those jobs will go to small businesses rather than large ones? We should demand that it should be clarified what type of companies will be used to do these jobs – and possibly even demand that a percentage be required to go to the small business community!

If small business is the engine that creates new jobs, why has it been given the short stick in a plan that is intended to stimulate the economy?