Kevin O'Leary sounds alarm on 'big problem' facing businesses: This is 'bad economic policy'

O'Leary Ventures chairman Kevin O'Leary joined 'Outnumbered' Wednesday, warning 'Bidenomics' has created a 'big problem' for small businesses in the U.S. economy.

KEVIN O'LEARY: The problem with the policy so far and the multiple bills, including the CHIPS Act and of course, the anti-inflation act, whatever you want to call it, it's just massive spending, but it's the target of where that spending went. Here's the problem. Most of it's going to the S&P 500 companies. They're important. They're big employers in America. However, they only represent 40% of the economy. What we haven't seen is the unintended consequence that now we're seeing is that we're starving small business in America. We throw billions to Intel and nothing to a guy in Champaign-Urbana who's running a shop with 58 employees. His cost of capital because of these rapid rate hikes has gone through the moon. It went from maybe 6 or 7% now to 20%. 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.  Madeline Coggins is a Digital Production Assistant on the Fox News flash team with Fox News Digital.

This is why I was on the Hill yesterday. I was banging the drum up and down the halls saying, 'Everybody, let's wake up to what's happening to my small companies.' I got 34-plus companies. They can't raise a dime. There's no Biden-omics for them. They have no capital. And that's a big problem and it's manifesting itself. Those are the people that are looking for cheaper toothpaste and all the issues that are going around inflation. Core inflation is not down. CPI, yes, but core inflation, the real inflation that hurts a small individual that's trying to live off 58,000. They're getting killed. And this will show up in the polls. This will become political. But we've got to save small business right now. We have to do everything in our power to make sure they get access to capital. This is a problem that's only six to eight weeks old. You talk to anybody running a small business with between five and 500 employees, they cannot raise any money. That's bad economic policy. And that's because Biden's focused only on the big guys.

O'Leary pointed to the core inflation numbers rather than the consumer price index (CPI) as an indicator of the continued struggle everyday Americans face.