Kevin O'Leary warns chaos is about to begin for US economy: 'Wake up and smell the roses'
'Shark Tank' star says September could bring liquidity crisis for small businesses
By Elizabeth Heckman Fox News
Published September 2, 2023 5:00am EDT
O'Leary Ventures chairman Kevin O'Leary is warning that the economic policies of the Biden administration are about to put a significant squeeze on small businesses.
The "Shark Tank" star joined "Fox & Friends" to warn that the month of September will usher in a chaotic time for the economy due to high interest rates.
"We've got the CHIPS and Science Act. Where's that money going? Behemoth giant companies in the S&P 500. The Inflation Reduction Act, another trillion not even printed yet. All going to big guys. Now, that's great. They represent 40% of the jobs in America, the S&P 500. Everybody knows the S&P 500 is the biggest index in the world. But 60% of America is small business. That's where 60% of the jobs come from. We've given nothing to them. And so they're struggling because the Fed is raising rates up to 5.5% in a matter of months."
Although the U.S. economy has seen some respite from record inflation, O'Leary has been warning in recent weeks that there is a "crisis emerging" for U.S. small businesses. O'Leary recently traveled to Capitol Hill to talk to "everybody" he could, cautioning about a liquidity crisis.
"We have a crisis emerging. … I'm talking about companies with five to 500 employees, which represent over 60% of our economy," O'Leary said.
"If you're in the S&P 500, you have no trouble financing your business. You can't say that about small business anymore. The cost of capital has gone through the roof."
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