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President Joe Biden is holding firm with his adoption of so-called “Bidenomics,” which is a term used to tout Biden’s economy policy.
In contrast to Biden’s economic optimism, “Shark Tank” television star and businessman Kevin O’Leary says there is undoubtedly a serious crisis emerging for U.S. small businesses.
O’Leary points to record-high inflation and the high cost of goods that continues to crush Americans under the Biden presidency.
“I live in the real world,” O’Leary Ventures chairman Kevin O’Leary said. “I’m here on the Hill today in Washington talking to everybody I can about the problems I’ve got in just getting working capital for small businesses. We have a crisis emerging.”
“These rapid rate hikes that have occurred, unprecedented speed of these hikes, have put my small businesses, and I’m talking about companies with 5 to 500 employees, which represent over 60% of our economy,” O’Leary said on “The Big Money Show.”
“If you’re in the S&P 500, you have no trouble financing your business,” he continued. “You can’t say that about small business anymore. The cost of capital has gone through the roof.”
Evidence recently published by the National Federation of Independent Business (NFIB) claims that U.S. small businesses are gaining confidence under Biden. O’Leary argued the study isn’t accurate.
“I’m in the real world talking to CEOs of small companies that are family owned in America in almost every state, every day. They’re not happy either. So I’m not listening to that data,” O’Leary said in response to the NFIB. “I’m dealing with reality.”
The June jobs report did not offer an optimistic picture of the U.S. economy. Employers added a fewer-than-expected 209,000 jobs.
The consumer price index also increased in June. This measures a basket of goods, including gasoline, health care, groceries and rent. Iflation is projected to have climbed 3.1%.
Jon Thompson, NFIB communications director, told Fox News, “Small business owners lack optimism about future economic conditions due to numerous reasons that create uncertainty, including worker shortages, supply chain issues, inflation and threats of tax increases from Washington,”
O’Leary says another antipicated federal interest rate hike will further exacerbate U.S. small businesses.
“There’s no cash for small businesses, and when the Fed raises rates another 50 basis points, that’s going to make it worse,” O’Leary said. “No, I’m not happy.”
“Let’s tell small business how to survive this pending crisis,” O’Learry told politicians. “And the program that I’m really talking up is the employee retention credit, which none of these small businesses have applied for yet.”
“And I want everybody on the Hill to let their constituents know they should apply for it, because we’ve got a real crisis coming here,” he concluded.
