Kevin O'Leary Raises Alarm for US Businesses: A Crisis on the Horizon

In his role as the chairman of O’Leary Ventures, Kevin O’Leary asserts, “I live in the real world,” emphasizing his presence on Capitol Hill in Washington, D.C., where he is engaging with various stakeholders to highlight the challenges faced by small businesses in obtaining working capital. He unequivocally states, “We have a crisis emerging.”

During an appearance on “The Big Money Show,” O’Leary elaborated on the increasing difficulties small businesses will encounter when seeking financing for their ventures. He draws attention to the unprecedented rapid rate hikes that have taken place, which have adversely affected small businesses with 5 to 500 employees. These businesses represent over 60% of the US economy. O’Leary contrasts this situation with larger companies in the S&P 500, who still enjoy relatively unimpeded access to financing. For small businesses, however, the cost of capital has skyrocketed, posing significant challenges.

Although the National Federation of Independent Business (NFIB) Small Business Optimism Index released on Tuesday suggests that small business confidence has risen by 1.6 points to 91 points, O’Leary remains skeptical and challenges the notion that all is well.

“I’m in the real world talking to CEOs of small companies that are family-owned in America in almost every state, every day. They’re not happy either. So I’m not listening to that data. I’m dealing with reality,” he asserts.

Ahead of the release of the June inflation numbers, which are expected on Wednesday, small business owners and operators are primarily concerned about the labor market, inflation, and the Federal Reserve’s actions. The June jobs report presented a mixed picture, with employers adding fewer jobs than expected. Nevertheless, the unemployment rate decreased to 3.6%. Notably, wage growth exceeded expectations, fueling speculations of another rate hike by the end of July.

Economists anticipate that the consumer price index, which measures the prices of goods like gasoline, healthcare, groceries, and rent, will show a 0.3% increase in June, unchanged from the previous month. However, inflation is projected to have risen by 3.1% on an annual basis, down from 4% in May and significantly lower than the peak of 9.1% in June 2022. Despite this decrease, inflation remains well above the pre-pandemic average and the Federal Reserve’s target rate of 2%.

Moreover, an NFIB report published last month revealed that inflation was the primary concern for 25% of small business owners in May, a two-point increase from April. Labor quality was the second most significant concern, with 24% of owners reporting difficulties in filling job openings.

Jon Thompson, NFIB communications director, explained, “Small business owners lack optimism about future economic conditions due to numerous reasons that create uncertainty, including worker shortages, supply chain issues, inflation, and threats of tax increases from Washington,” highlighting the concerns voiced by small business owners.

As policymakers at the Federal Reserve closely monitor the June report for signs of subsiding inflation while attempting to cool down the economy through aggressive interest rate hikes, Kevin O’Leary warns that small businesses could face further challenges if another rate hike occurs. He emphasizes the scarcity of cash available to small businesses and expresses his dissatisfaction, stating, “No, I’m not happy,” in response to the potential consequences of another rate hike.

O’Leary calls upon lawmakers to take action and urges them to inform small businesses about the employee retention credit program, which has yet to be utilized by many small businesses. He stresses the importance of preparing small businesses to survive the impending crisis, stating, “Let’s tell small businesses how to survive this pending crisis.”

First Patriot News is a news media agency located in Los Angeles, California.
We are a group of industry veterans with collective experience and news/media journalling experience of over 15 years. We are committed to fair reporting & getting our listeners the truth and we strongly support a free America.

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Democratic Party Faces Turmoil as Biden Struggles in Debt Ceiling Battle

The piece highlights President Biden’s inability to effectively manage the debt ceiling issue. It points out that his attempts to push for a suspension of the debt limit without any conditions have encountered significant resistance, including from members of his own party. Concerns are raised regarding the impact on the nation’s fiscal health and the lack of accountability in spending.

President Biden’s struggles in the debt ceiling debate reflect a broader pattern of leadership shortcomings. The President’s inability to rally support within his party reveals a lack of political acumen and poses challenges in navigating complex policy issues. These weaknesses have potential ramifications for the Democratic Party as a whole.

The consequences of President Biden’s mishandling of the debt ceiling debate are also highlighted. Including the possibility of severe economic repercussions, such as a government shutdown or a default on the nation’s debt obligations. Such outcomes not only threaten financial stability but also erode public confidence in the Biden administration’s governance abilities.

Furthermore, divisions within the Democratic Party are exacerbated by the debt ceiling showdown. Moderate Democrats express concerns about fiscal responsibility and the consequences of unchecked spending. This internal division weakens the unity required to advance the Biden administration’s policy agenda.

As the situation intensifies, Republicans are going to capitalize on the Democrats’ current show of disarray. Republicans can emphasize their commitment to fiscal responsibility and contrast themselves with the perceived lack of fiscal discipline within the Democratic Party. This could bolster the Republican Party’s position and diminish public support for the Biden administration.

In conclusion, the Democratic Party is in a state of disarray as President Biden fails to confront challenges in the debt ceiling showdown. The President’s struggles to garner support within his party and underscores the potential consequences of his actions. The divisions within the Democratic Party and the potential advantage for Republicans in exploiting this situation compound the difficulties faced by the Biden administration. The outcome of the debt ceiling battle will not only impact fiscal health but also shape the political landscape moving forward.

First Patriot News is a news media agency located in Los Angeles, California.
We are a group of industry veterans with collective experience and news/media journalling experience of over 15 years. We are committed to fair reporting & getting our listeners the truth and we strongly support a free America.

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