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On January 28, 2025, Kevin O'Leary, a prominent entrepreneur and investor from Shark Tank, shared a clip from his Fox News interview in an Instagram post, where he addressed the ongoing issue of inflation. He emphasized that inflation is the result of a prolonged buildup.
"The truth is though inflation took a long time to build up, and the most measurable are around proteins, eggs, cheese, meat, housing, either your rent or your mortgage payment, and energy prices," he stated.
O'Leary highlighted that inflation is the result of a combination of economic factors, some of which have been exacerbated by government spending. The Shark Tank investor also suggested that it would take approximately two years for inflation to return to more manageable levels.
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Shark Tank Kevin O'Leary's take on inflation, government spending, and energy independence
The impact of government mandates on inflation
O'Leary pointed to the measures introduced during the Trump administration, particularly those related to energy independence, as key to reducing inflation. He explained that when energy prices decrease, it helps lower input costs across multiple sectors.
“Energy is an input cost across all 11 sectors,” he remarked.
Reducing energy prices can have a ripple effect, benefiting industries reliant on energy, such as manufacturing, transportation, and utilities, thereby contributing to lowering overall inflation.
O'Leary also touched upon the broader issue of government spending, particularly the programs initiated over the past few years. He argued that policies, such as the Inflation Reduction Act, flooded sectors with money, which he believes contributed to inflationary pressures.
“We had so many acts in the last four years that poured money from a helicopter into every sector,” the Shark Tank investor stated.
O'Leary emphasized that this "helicopter money" approach would take time to address. He further explained that the inflationary effects of these policies were compounded by the surplus of financial support spread across various sectors, which is now gradually working its way through the economy.
The role of interest rates and the private sector
While O'Leary acknowledged that interest rates also play a significant role in inflation, he underscored the importance of energy independence in controlling overall costs. He critiqued government programs that, in his view, have misallocated resources.
For example, O'Leary mentioned companies like Intel, which he believed were receiving government funds in a way that did not serve the broader economic goals effectively.
“Half of that’s being completely wasted on companies like Intel,” he remarked.
The Shark Tank investor expressed a preference for private sector involvement in such industries, suggesting that tax credits could be a more efficient alternative to direct government intervention.
O'Leary's projection for inflation recovery
Despite these challenges, O'Leary believes that inflation will not remain at its current levels for much longer. He projected that it could take about two years for inflation to approach a more stable range near 2%. According to O'Leary, the measures in place today— such as energy reforms and reduced government spending— are slowly working to bring prices down, but the process will take time.
"It’s going to take a while to burn that off,” the Shark Tank investor said.
O'Leary's comments provide insight into his perspective on the root causes of inflation, as well as his expectations for how it will unfold over the next few years. While the situation is complex, his emphasis on energy independence and reduced government spending as key factors in driving inflation lower offers a framework for understanding how inflationary pressures might ease in the future.
The political conversation around inflation
The interview also touched on the political discourse surrounding inflation. When asked about the viewpoints of certain political figures, such as Senator Elizabeth Warren, O'Leary remarked on their ability to rally public support, but expressed disagreement with their policies.
"I love Elizabeth Warren and AOC, [but] I hate their policies." O'Leary said, but clarified that he does not align with their political views.
The Shark Tank investor described them as effective marketers, referencing their ability to garner attention and funding. However, he critiqued their policies, especially those related to taxation and government spending, as harmful to the economic environment in places like Massachusetts.
Tune in to Shark Tank Fridays at 8 PM ET on ABC, or stream full episodes on Hulu to catch all the action and entrepreneurial pitches.
