Small Business Committee Democratic Site

STATEMENT
of the
Honorable Nydia M. Velázquez
Progress Report - President Bush's Small Business Agenda
July 23, 2003

As Congress completes its business before the month long summer district work period, we prepare to leave town with our nation's economy still very much in decline.

Over the past two quarters, we've had an anemic growth rate of about 1.5 percent. Since President Bush took office, the economy has shed an average of almost 88,000 jobs per month, which is the worst rate for any administration since World War II.

If we are to climb out of these economic doldrums, small businesses and this nation's entrepreneurs must play a role. We have a saying on our committee - "small business is big business in America." Small businesses are responsible for giving three out of four Americans their first paychecks and make up half our GDP. It is a little known fact that during times of economic uncertainty, start-ups flourish. In fact, sixteen of the 30 corporations on the Dow Jones industrial average actually trace their birth to recessions.

President Bush seems to understand how important small businesses are to the health of the American economy. During his bid for the White House, he touted his credentials as a small business owner and promised, if elected, that his administration would be the most small business friendly ever.

To follow up on his pledge, in March 2002 President Bush unveiled his small business agenda. He said "this plan will free entrepreneurs to devote more time and resources to servicing their customers, developing their products and helping their employees." He then went on to outline five issue areas of critical importance to small business owners - tax incentives, health care, regulatory relief, fairness in federal contracting, and opening sources of information for small business.

I don't think anyone could argue with this, and in terms of the issues, President Bush was right on. We are not here to criticize his promises or his agenda, we are here to ask almost a year and a half later, where are the accomplishments? Where is the follow through? Where is the commitment?

I can tell you - there is none. This agenda is just another instance in which there is a large credibility gap between the rhetoric of this administration and the actions of it.

What we have instead of accomplishments are failures, current law represented as breaking new ground, and innovation repackaged as old policy. Because of this, the state of small businesses is abysmal - and getting worse by the day.

What does this inaction really mean? It means small businesses will continue to struggle. They have received no tax relief and any surplus that could have gone to help them is now long gone.

It means that small business owners, their families and their workers will have to continue to live one illness away from bankruptcy. As health care costs continue to skyrocket, many are forced to drop coverage.

It means that the confusing regulatory process will continue to drain small businesses of almost $7,000 per employee per year, which could be used to grow their businesses. While small businesses struggle to get the information they need to solve these problems.

It means that the best way for small businesses to grow - the $235 billion federal marketplace - the largest in the world - is in jeopardy as it remains largely closed to small businesses.

The failure of this administration and congressional Republican leaders have contributed significantly to the current slide facing our economy. It's not like when the President's party sets its mind to something, it does not get done. History has proven otherwise.

In the early 1990s, shortly after Republicans assumed control of Congress, they announced their Contract with America. And with dedication and hard work, they were able to get every agenda item on the House floor for a vote within the first 100 days of Congress, as promised.

The president certainly hasn't shown this same fervor for small business - even though they control Congress and the White House. So the progress report on the president's small business agenda is simple really - there has been no progress.

So next week, when President Bush is in cities across the country talking about the economy - and small businesses - it's time to ask him about this agenda. It's time to ask him how committed he is to turning this economy around. That should be the number one priority on his domestic policy agenda. But given the progress he's made in helping small businesses, getting the economy back on track does not seem to be at the top of his list. Thank you.