Small business owners are increasingly relying on credit cards to stay afloat, as inflation continues to drive up costs. Some business owners blame the Biden administration for the rise in costs, accusing it of focusing on foreign aid instead of helping domestic businesses.
Small business owners are facing a growing financial burden, with many relying heavily on credit cards to keep their businesses afloat. According to a recent report from Bank of America, small business credit card balances have surged by 18% since 2019, highlighting the impact of soaring inflation on businesses.
Maher Youssef, owner of Pluto Organic Cafe in Seattle, has seen the effects of inflation firsthand. His coffee shop has had to rely on credit cards to cover costs, and he believes the Biden administration needs to refocus its efforts on supporting small businesses in the US.
"I think Biden should focus on that. If he can't do it, he should resign," Youssef said.
The Bank of America report found that about 28% of small business owners have raised prices as a result of inflation, with 25% citing inflation as their top concern. However, Youssef explained that he could only raise prices minimally to avoid alienating customers.
"We're a small business, a small corporation, a small cafe. I can't raise the prices. I can't put the coffee for, like, you know, a couple bucks more. The maximum we can raise the price is — what — 50 cents, a dollar? Because if you put the prices crazy, people are not going to buy from you," he said.
Youssef also criticized the Biden administration for its spending priorities, arguing that aid should be directed to small businesses in the US rather than foreign countries.
"I'm just wondering, where is the money? Where are the taxes we're paying? Biden makes us like slaves in a circle, takes our money and just puts it in Ukraine, Israel, and gives it to other countries instead of giving to our own people. As an American citizen, where is the money?" Youssef said.
"Where is my money? Instead of helping small businesses, helping the people here, they just go give it to a different country?" he continued. "I think Biden should instead focus on this country and fix it. If he can't do it, he should go. Let somebody else take care of it."
President Biden has blamed corporate greed for businesses raising prices in reaction to inflation. In a February speech, Biden defended his administration's efforts to bring prices down but blamed large businesses for price gouging and "greedflation."
"But for all we've done to bring prices down, there are still too many corporations in America ripping people off: price gouging, junk fees, greedflation, shrinkflation," Biden said.
"Well, it's going to stop. Americans, we're tired of being played for suckers," he continued. "And that's why we're going to keep these guys — keep on them and get the prices down."
Despite the President's assurances, small business owners like Youssef continue to face significant challenges due to inflation and are calling on the government to prioritize their needs. The reliance on credit cards raises concerns about the long-term financial health of these businesses and highlights the ongoing impact of inflation on the US economy.
