• Kevin O’Leary, Shark Tank star and investor, says that the Biden administration has neglected small businesses with its economic policies.
• Inflation and interest rate hikes are particularly crushing American small businesses, as government spending goes to larger corporations.
• Core inflation remains high, making it difficult for entrepreneurs and small businesses to access capital.
Kevin O’Leary on Biden Administration’s Neglect of Small Businesses
Shark Tank star and investor Kevin O’Leary recently spoke out about how the Biden administration’s economic policies have been neglectful of American small businesses.
Rising Rates & Inflation Put Pressure On Small Businesses
O’Leary points to the CHIPS Act (Creating Helpful Incentives to Produce Semiconductors) and the Inflation Reduction Act (IRA), which President Joe Biden signed into law last year, as examples of how most of the government’s spending is going towards larger corporations rather than helping out smaller ones. He notes that while these big corporations are important employers, they only represent 40% of America’s economy.
The increasing interest rates and persistent inflation have been particularly hard on smaller businesses. O’Leary explains that these rapid rate hikes are making it difficult for them to access capital from regional banks since they are waiting for new liquidity rules.
Core Inflation Making It Difficult To Access Capital
Although the Consumer Price Index (CPI) has fallen in recent months, core inflation still remains high. This makes it difficult for entrepreneurs and small business owners to make ends meet or access capital.
Political Impact Expected
O’Leary believes that this issue will become political as people realize how much pain small business owners are in due to inflationary pressures.
Solutions Needed For Small Business Owners
To help combat this problem, O’Leary advocates for providing more access to capital so that small businesses can survive during these tough economic times.