"Shark Tank" star Kevin O'Leary slammed "Bidenomics" in the interview with Fox's "Outnumbered" this week, telling the hosts that the administration's economic policies were "starving small business in America."
On the program, O'Leary said that the policies and "multiple bills, including the CHIPS Act and of course, the anti-inflation act, whatever you want to call it" includes massive amounts of spending that isn't targeting the right areas.
"Most of it's going to the S&P 500 companies," O'Leary said. "They're important. They're big employers in America. However, they only represent 40% of the economy."
The "unintended consequence," he said, is that it has all led to the "starving" of small businesses, adding that the "problem" began in the last six to eight weeks.
Kevin O'Leary testifying to Congress about the FTX crash in December 2022. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
Related: Kevin O'Leary Says Here's Where to Put Your Money Right Now: 'Go Where People Hate It'
"We throw billions to Intel and nothing to a guy in Champaign-Urbana who's running a shop with 58 employees," he said. "His cost of capital because of these rapid rate hikes has gone through the moon. He can't raise any capital because the regional banks have stopped lending to him as they wait to see what the new liquidity rules are. You talk to anybody running a small business with between five and 500 employees, they cannot raise any money."
O'Leary made the remarks in response to the Labor Department's latest CPI report, which found that inflation had slowed for the 12th month in a row, with consumer prices increasing 3% from a year earlier (and down from 4% in May).
While core inflation eased "more than expected," according to the report, O'Leary noted that "it is not down," and prices on everyday items continue to vex American's wallets. Rents, gas, and food prices rose 0.2% in June from the previous month.
Related: Wage Growth Outpaces Inflation for First Time in 2 Years, Offering Hope for Economic Growth in the U.S.
"That's bad economic policy," O'Leary said. "And that's because Biden's focused only on the big guys."
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