Managers of small and medium-sized enterprises are become increasingly dependent on credit cards Some executives are blaming the Biden administration for the rising costs.
Maher Youssef, owner of Pluto Organic Cafe, told Fox News that his Seattle coffee shop is relying on credit cards to pay for expenses as inflation skyrockets. He believes the Biden administration needs to refocus on supporting the country’s struggling small businesses.
“I think Mr. Biden should focus on that, and if he can’t do that, he should resign,” Youssef told “Fox & Friends Weekend” co-host Will Kaine.
The results of a Bank of America study released on May 1 show that: Small and medium-sized enterprises They are reacting to inflationary pressures within the economy by accumulating credit card debt to finance their operations. Aggregated and anonymized data shows small business credit card balances have increased by 18% since 2019.
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Seattle coffee shop owner Maher Youssef accused President Biden of not doing enough to support small businesses as inflation drives up costs.
Inflation has fallen significantly from its peak of 9.1%, but progress since the summer has been roughly flat. According to the latest government data, the consumer price index rose 3.5% in March, the highest level in six months.
About 28% of small business owners have been forced to raise prices as a result, and 25% of them cited inflation as their top concern, according to a Bank of America report citing NFIB data. ing.
However, Youssef explained to Fox News that the company can only raise prices minimally to avoid scaring off customers.
“We’re a small business, a small business, a small cafe. We can’t raise our prices. We can’t pay, let’s say, a few more dollars for a coffee. The most we can raise our prices is because , 50 cents to the dollar? Because if you screw up the price, people won’t buy from you,” he said.
Small business optimism at lowest level since 2012: NFIB
Since 2019, small business credit card balances have increased by 18%. (Fox News)
The coffee shop owner called on Biden to support domestic businesses instead of spending money on aid abroad.
“I’m just wondering, where is the money? Where is the taxes that we pay? Biden has made us like a ring slave, taken our money and given it to Ukraine. or to Israel, and instead of donating it, give it to other countries.” As an American citizen, where is the money? ” Youssef said. “Where is my money? Instead of helping small businesses and people here, do I just give it to another country?”
“I think Biden should focus on this country and solve the problems instead of focusing on different countries. If he can’t do that, he should leave. Let someone else do it,” he said. continued.
President Biden has blamed corporate greed for raising prices in response to inflation.
In a speech in February, Biden defended his administration’s efforts to lower prices but accused big companies of “ripping people off” by jacking up prices.
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“But despite all we have done to lower prices, there are still too many companies in the United States that rip people off, whether through price gouging, junk fees, greed flation, or shrinkflation.” said Mr. Biden.
“Well, that’s about to end. Americans, we’re tired of being played for,” he continued. “That’s why we’re going to continue to maintain these products. We’re going to continue to bring the prices down.”
Fox Business’ Megan Henney contributed to this article.
