Small business owners are increasingly relying on credit cards to keep their businesses afloat, and some business owners are blaming the Biden administration for the rise in costs.
Maher Youssef, owner of Pluto Organic Cafe, told Fox News that his Seattle coffee shop has relied on credit cards to pay for costs as inflation has surged. He believes the Biden administration needs to refocus its attention to helping small businesses who are struggling in this country.
“I think Biden should focus on that. If he can’t do it, he should resign,” Youssef told “FOX & Friends Weekend” co-host Will Cain.
Findings published May 1 by Bank of America show that small businesses are reacting to inflationary pressures within the economy by racking up credit card debt to finance their operations. Since 2019, small business credit card balances are up 18%, according to aggregated and anonymized data.
While inflation has fallen considerably from a peak of 9.1%, progress has largely flatlined since the summer. The latest government data shows the consumer price index jumped 3.5% in March, the highest level in six months.
The Bank of America report found about 28% of small business owners have had to raise prices as a result, with 25% of these owners citing inflation as their top concern, citing NFIB data.
However, Youssef explained to Fox News that he could only raise prices minimally in order not to scare away his 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.
The coffee shop owner called on Biden to help out businesses here rather than spend money giving aid overseas.
“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?”
“I think Biden should instead of focusing on different countries, focus on this country and fix it. If he can’t do it, he should go. Let somebody else take care of it,” he continued.
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 raising prices and “ripping people off.”
“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.”
Fox Business’ Megan Henney contributed to this article.
