Bidenomics is a boon for S&P 500 firms, but ignores the “small guys,” Kevin O’Leary said. The “Shark Tank” star slammed Biden’s economic agenda in an interview with Fox News. Small businesses face a funding crisis and lack of government aid, he warned. Loading Something is loading.
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Biden’s economic agenda is a boon for firms in the S&P 500 but it’s bad for the small businesses that fuel the US labor market, according to “Shark Tank” star Kevin O’Leary.
In an interview with Fox News on Thursday, O’Leary pointed to the Biden administration’s economic initiatives, including programs like the CHIPS Act. Those measures have fueled investment in large firms in the benchmark stock index, O’Leary said – but they largely ignore investment in small businesses, he said, which support around 60% of jobs in the US.
“There’s no Bidenomics for them. I can’t find a single program out of all of those billions of dollars that have been printed, much of it not spent yet, that was initiated from Bidenomics,” O’Leary said.
The one exception to that is the Employee Retention Credit, he said, a tax credit for small businesses affected by COVID-19. But that benefit is set to expire, as businesses won’t be able to retroactively file taxes for 2021 after 2025.
Small businesses have struggled amid tighter financial conditions this year, stemming from both the Federal Reserve’s interest rate hikes as well as the fallout from the collapse of several banks earlier this year, which had the effect of limiting credit availability.
“If you’re doing 50 million in sales to Walmart and you need a 5 million dollar credit line, good luck. There’s no Bidenomics for you,” O’Leary said. “I”m just waving a flag saying, hey everybody, I am small business, and I’m telling you, you’ve got to start focusing on the 60% of the economy where everybody else lives. It’s just great to take care of the big guys, but the small guys are suffering,” O’Leary added.
The Shark Tank star, who has invested in a portfolio of over 30 small businesses, has been a loud critic of Bidenomics, which he previously described as “bad economic policy.” Small firms are facing a funding crisis as credit conditions tighten, he warned, adding that his own firms have been unable to “raise a dime.”