Thursday, August 19, 2010

The minority party should focus on the effectiveness of existing programs

Today, our Congressman spoke at a local business alliance luncheon. Being from the minority party, he had the usual comments about what the majority is doing wrong. I suggested that the SBIR grant program for small business was flawed - the focus should be on growing businesses, not perpetually small operations whose main expertise is applying for and winning government grants. (This was not my opinion, but the GAO's.) He replied that rather than give out the grants at all, he'd like to give every business that creates a new job a 25% tax credit.

This is where the minority party gets it wrong. Both parties focus on strategy and power, regardless of their majority or minority status. But the minority party, especially when a minority in all 3 branches, is not going to drive policy. Better to present their alternate proposals, then focus on the government's execution of its existing programs. Uncover waste, fraud, unintended consequences; expose these to the public, and push the majority party to govern effectively.

Going back to the SBIR example, when the minority says "We shouldn't spend that money at all, we should give it back to the people"; well, no matter how valid that position is the majority will respond, "We won the most votes last time, so more people clearly agree with us that it should be spent."

On the other hand, if the minority party points out that the SBIR program has stated goals of creating jobs, yet half of all small business grants go to "small businesses" that have been small for decades, receive the bulk of their money from a never-ending stream of small business grants, and have few productive skills outside of winning those grants - what will the majority party say? "True, but we won the election so the American people clearly want us to waste that money."

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