Kevin O’Leary the successful entrepreneur and star of ABC’s shark tank was on CNBC and he was on fire. It all started when Kevin was asked about the inflation reduction act and Kevin rightly pointed out that if you are going to print more money it does not reduce inflation, in fact, it does the exact opposite.
Here is Kevin just getting warmed up on national television Inflation right now is around the voters around food and energy. Energy’s rolled over a bit that’s good and of course, anything can happen until November 8th. The rest of this bill is highly inflationary and ain’t going to help to go to be lots of unhappy people and in various close races whether that be senate or otherwise I think what occurs and again this is speculation on my part but I’m going to invest on this premise.
This is going to be the last legislation this administration ever gets to put through after November 8th one of the reasons Nancy Pelosi went to Taiwan which she knows and she’s going to be a very successful politician. It’s over she’s not going to be a speaker after this midterm election and she made her move and I applaud her for it it was very gutsy but the bottom line is this is the last chance for romance on policy and then it’s total gridlock and that’s a good thing.
Now as Kevin points out yes if you create more money and throw it into the system you actually make inflation worse. It is shocking that politicians central bankers and people in positions of influence did not learn this lesson over the last two and a half years. Just as in 2020 many people were yelling and screaming saying if you continue to create more money and put it in the system we will get high inflation, the people in power said no we won’t and they were wrong.
Kevin’s pointing out that although they named this the inflation reduction act it isn’t going to reduce the inflation at all and then Kevin O’Leary went absolutely bananas on national television, When he was asked about the carried interest loophole he started to state that entrepreneurs and investors are risking capital building businesses and creating jobs.
Here is Kevin in his full glory on CNBC if you’re against corporate welfare and you’re against this sort of industrial policy why have an industrial policy that benefits you personally?
Of course, it does I’m admitting I’m being transparent but you’re telling me a sector that I compete with let’s say chips gets free money and I’m a taxpayer paying for it that’s another incentive. The incentives drive the economy the incentives and private equity have driven the most successful private equity sectors.
I take risks that’s what I do I take risks with other people’s money too because i manage that money and people trust me to manage it and that’s why they do it. We’ve created millions of jobs in this country we fix broken companies every day. We look all around the world for opportunities to attract capital to America to invest it here. How many politicians actually create jobs when this sector gets attacked? I get offended because we do really hard work to build our economy and we’ve done a lot for 65 years.
Andrew ask Kevin a week ago you said you didn’t want money to go to the chips because you didn’t want corporate welfare but for that group and you said look how profitable they already look how profitable the private equity this is the wealthiest industry in the country in terms of the people on an individual basis.
Kevin replied when in America do we punish success when did we start doing that when do we disincentivize the risk of capital why are you attacking. Do not assume that raising taxes reduces deficit all it does is crush economic activity that’s been proven out many many times. We’ll let this thing play out but when there’s the bad policy there’s bad policy.
Kevin’s got a great point taxes are either used as an incentive or as a punishment and at the end of the day, if we are going to target the world’s most successful entrepreneurs and investors, you’re going to disincentivize the investment of capital and the continued creation of jobs. If we continue to watch this play out we now live in a country where more than 50% of some people’s income is actually going to pay taxes.
They get paid less for their work than the government and so as tail as old as time taxes. What should be the right rate, who should get charged what and when should you have to pay it the debate continues. Kevin O’Leary’s got a great point here if we want innovation, we want job creation then we should probably go ahead and empower entrepreneurs and investors to continue taking risks to continue experimenting, and to continue driving innovation because as we know that comes from the private sector and as we’ve seen time and time again entrepreneurs solve the problems that society needs most.