It has been just revealed the fact that American Small Businesses are now getting killed by the booming rate hikes and inflation as well. Check out the latest reports about this below.

According to investor and Shark Tank star Kevin O’Leary, small businesses have been overlooked by the Biden administration’s economic policies.

American small businesses state

This is particularly hard on them as inflation rates and interest rate hikes are making things more difficult.

O’Leary recently spoke to Fox News and mentioned that the CHIPS Act (Creating Helpful Incentives to Produce Semiconductors) and the Inflation Reduction Act (IRA), signed into law by President Joe Biden last year, are only benefiting big corporations.

“The problem with the policy so far and the multiple bills including the CHIPS Act and of course the anti-inflation Act [IRA] (are) just massive spending, but it’s the target of where that spending went.”

The same notes continued and revealed as per the Daily Hodl:

“Here’s the problem: most of it is going to the S&P 500 companies. They’re important. They’re big employers in America. However, they only represent 40% of the economy.”

According to the Shark Tank star, small businesses in America are suffering due to the negative effects of the Federal Reserve’s aggressive rate hikes and ongoing inflation, while big corporations are being looked after by the government.

The unintended consequences of these actions have not been taken into account. For instance, a shop owner in Champaign, Urbana with 58 employees is facing challenges due to the sudden increase in his cost of capital, which has gone up from 6% or 7% to 20%.

Regional banks have stopped lending to him, awaiting new liquidity rules. Despite the fall in the Consumer Price Index (CPI), core inflation remains high, which is causing significant damage to entrepreneurs and small businesses.

Stay tuned for more news and make sure to check out the markets as well.

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