"Lack of job" — When Shark Tank star Kevin O'Leary weighed in on America's economic struggles

In a discussion on CNN, Shark Tank investor Kevin O’Leary addressed the issue of economic divide in the U.S., pushing back against policies aimed at reducing wealth inequality. O’Leary argued that

"the problem today is lack of jobs."

He emphasized that small businesses, not government intervention, should drive employment growth. The conversation took place in response to former President Barack Obama’s remarks about economic inequality, where he stated that

"too many Americans are working harder than ever just to keep up."

O’Leary countered that "this vilification of the rich and the 1%" was misplaced, asserting that successful businesses create jobs and pay billions in taxes. He strongly opposed raising the minimum wage, claiming it would lead to job losses rather than economic relief.

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Shark Tank star Kevin O’Leary’s stance on economic policies

During the discussion, CNN anchor Erin Burnett introduced O’Leary by highlighting his business expertise, particularly his role on Shark Tank, where he advises entrepreneurs on building successful companies.

She questioned him on whether the economy was favoring only a select few. O’Leary dismissed the argument, stating that the disparity between the wealthy and others had always existed and was essential to capitalism. O’Leary specifically pointed to small businesses as the key to job creation, stating,

"There are over 20 million small businesses in America. That is where the job growth will come from domestically because large companies have already figured out that they can move their jobs offshore."

He argued that government intervention, including raising the minimum wage, would harm small businesses by increasing costs. Instead, he advocated for fewer regulations and lower taxes to allow businesses to expand.

Burnett then cited an Oxfam report stating that the wealthiest 1% control 46% of global wealth. She suggested that this indicated policies favoring the wealthy. O’Leary rejected the idea that government should redistribute wealth, stating,

"The reason they're the 1% is they created businesses, products, and services that were very successful, employed millions of people, paid billions in taxes."

He added that the wealthiest individuals were already taxed at 38%, while the middle class paid 12% on average, arguing against policies aimed at increasing taxes on top earners.

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The debate over the minimum wage

A major point of contention was the proposed 39% increase in the minimum wage. Shark Tank's O’Leary opposed the change, stating that raising labor costs would prevent small businesses from hiring more employees. He explained,

"If I was running a business with, let's say, five employees and I was thinking of hiring two more, I wouldn't want you to increase my labor costs by 39 percent because then I can't employ any more people."

Burnett pushed back by citing the Congressional Budget Office (CBO), which reported that raising the minimum wage could help lift people out of poverty. The Shark Tank star dismissed this perspective, asserting that job creation, rather than wage increases, should be the focus.

According to the Shark Tank investor, the focus should be on job creation to help people overcome unemployment and poverty, ensuring that everyone has the opportunity to work.

Burnett then questioned whether deregulation had been effective, citing the financial crisis as an example of unregulated markets leading to economic collapse. O’Leary argued that excessive regulations were currently stifling growth, pointing out that small businesses were burdened by compliance costs. He stated,

"We have created such a regulatory environment today that even a small business has to spend $20,000 to $30,000 a year just complying with the 2,800 regulations we layered on them federally last year."

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Economic growth and job creation

Shark Tank's O’Leary linked America’s slow job growth to weak GDP expansion, comparing it to higher growth rates in other countries. He stressed that instead of imposing more policies, the government should listen to small business owners:

"The president talks about using government policy to level the playing field. That's exactly what we don't need."

He emphasized that businesses, not government programs, drive economic success. He also suggested that corporate success translated into job opportunities and wealth creation for others.

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Shark Tank airs every Friday on ABC at 8/7c.