Rewarding Inefficiency: The Racist 8(a) Business Development Program

Are you a Black, Hispanic, or Asian small business owner that is having trouble competing in the open market because Americans are racists that simply don’t want to buy your over-priced shoddy products because you are brown?

NO PROBLEM!  The federal government has a program for you!

The 8(a) Business Development Program was developed by criminal looters for criminal looters.  The 8(a) program allows “economically and socially disadvantaged” small businesses (ie. any business that isn’t run by a white man) to be awarded federal contracts on the basis of skin color rather than on the basis of competitive bidding.

Normally federal contracts are awarded on an open bid basis.  Typically the feds will issue a procurement request and then solicit bids on that request from various vendors on the open market.  The rules state that the cheapest bidding vendor that can meet the requirements of the contract will get the contract.

Of course, having to competitively bid on contracts is a racist practice that puts inefficient minorities at a disadvantage against whites who can produce cheaper products simply because of their skin color.   Thus, the 8(a) program was developed.

The official regulations define “socially disadvantaged” as the following:

Social Disadvantage

The Small Business Act defines socially disadvantaged individuals are those individuals who have been subjected to racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities and the social disadvantage must stem from circumstances beyond their control.

The following groups of individuals are deemed to be socially disadvantaged:

Black Americans
Hispanic Americans
Native Americans2
Asian Pacific Americans3
Subcontinent Asian Americans4

Being born in a country does not, by itself, make the birth country an individual’s country of origin for purposes of being included within a designated group.

Individuals not members of one of the listed designated groups may establish social disadvantage based on personal experiences of substantial and chronic social disadvantage in American society, not in other countries, which is the result of a distinguishing feature (i.e., race, ethnic origin, gender, physical disability) that has contributed to the social disadvantage.

The social disadvantaged must have a negative impact on your entry into or advancement in the business world because of the disadvantage.  SBA considers education, employment and business history.

For the full regulatory text on the 8(a) program, see the this link.

I find it humorous that Asians are included in the “socially disadvantaged” racial classification.  Asians actually have a higher per-capita income than any other race in America, including whites.   Isn’t it odd that a race which was imprisoned in internment camps by the federal government just 60 years ago was able to overcome the “racism” of America inside of a single generation to become the highest wage earning race in the United States, yet Hispanics and Blacks seem to have languished behind?

This of course begs the question of whether Black and Hispanic earnings disparity is really due to racism as our criminal federal government seems to think.

So what do you think?

Should the federal government be in the business of propping up uncompetitive business on the basis of the business owners skin color?

To me, the answer is clearly – NO.  Such programs and regulations CREATE racism by giving unfair advantages to minority groups.  The only way to eliminate racism is to create a LEVEL playing field where all people must compete on the merits of their abilities rather than the basis of their skin color.

Such programs retard real growth among minority business owners.  They allow the minority business owners to get away with sloppy inefficient business practices which HURT them in the long run.  Welfare programs such as this do nothing to foster good business practices.

It’s time to end racism in America.  It is time to end race based government favoritism.