"This is how recessions start" - Shark Tank's Mark Cuban issues warning about the effects of federal cuts

Shark Tank investor Mark Cuban has often vocalized his opinions about the administrative decisions in the United States and recently broke the silence about the announcement of federal cuts. He thinks that these policies will hurt the American economy, contrary to what the government thinks.

He took to Bluesky on Sunday to share his views about the same and thinks that this is not the way things should be working out.

Despite the latest job reports claiming that the economy might be on the rise, the data has not included the effects of the DOGE cuts along with the more recent federal layoffs that have happened in the country.

Analysts claim that this could be an early onset of recession, and the Shark Tank investor agrees with the conclusion. He thinks that all of this could slow the economy, ultimately marking a recession.

Sharing his opinions on Bluesky, Mark said,

"This is a bigger issue than people realize. Not just jobs lost. But their families losing benefits. Landlords losing tenants. Cities and towns losing revenue. This is how recessions start Ready Fire Aim is no way to govern."

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Shark Tank investor Mark Cuban discusses a potential recession for the US economy

It was revealed that 151,000 jobs were added to the US economy. The data is from February 2025, which marked yet another month of job growth. It was the sectors such as healthcare, finance, and transportation that had their employment rates go up. However, the federal employees saw 10,000 job cuts because of DOGE.

Shark Tank investor Mark Cuban drew a parallel between the current economic situation in America and the one that existed in the 90s. It was the time of the dot-com bubble, when the tech industry saw rapid growth in stocks.

However, it came crashing down soon. Given the fact that the current administration is giving major significance to AI along with other emerging technologies, Mark warns that it might yield the same result as they are hoping it would, which will ultimately make the US economy unstable.

Analysts are also cautioning the citizens about a possible boom and bust economic cycle, and Mark agrees with the stance.

Even another Shark Tank investor, Kevin O'Leary, talked about another facet of the administrative decisions, the tariffs on Canada and Mexico.

These import tariffs have been placed on Canada and China, who have, in turn, imposed counter-tariffs. The government has made this decision in hopes of protecting the domestic industries; it might hurt the cost of living in the United States.

Kevin O'Leary pointed out that the US depends a lot on Canada for energy and other sectors, and these tariffs might mean that the cost of fuel in the country might go up. Mark says that all these policies might result in a recession where the economy takes a downturn.

America is navigating through a tough situation that is marked by steady job growth yet rising unemployment rates.

Shark Tank investors such as Kevin O'Leary and Mark Cuban have issued warnings about the road ahead as they draw their lessons from the past economic cycles, which might repeat themselves if not trodden carefully.

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Shark Tank season 16 episodes get released every week on ABC at 8 PM Eastern Time on Fridays, and they are then made available for viewing on Hulu.