'We Don't Need More New Businesses, We Need Financial Literacy,' Says Grant Cardone—Claims Kamala Harris is An 'Economic Illiterate'

In a recent tweet, well-known entrepreneur Grant Cardone criticized Vice President Kamala Harris for proposing the creation of 25 million new businesses in her first year.

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Cardone pointed out that the U.S. already has around 32 million small businesses, with 67% just breaking even or losing money. His argument is simple: rather than pushing for new businesses, we should focus on financial literacy. 

According to Cardone, the real solution is to equip people with the financial knowledge they need to succeed. This education should be made available to everyone, including McDonald's employees, taking a jab at Harris' claim that she used to work at this fast food chain.

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Cardone emphasizes that many Americans struggle with money management. Since so many new entrepreneurs and businesses are shutting down or losing money, they often lack skills like budgeting, understanding taxes, or handling cash flow. Starting new businesses might just increase the number of failures instead of boosting the economy.

The Reality of Small Business Struggles

Running a successful business is more than just coming up with an idea or hiring staff. It requires a deep understanding of finances, markets, and long-term planning. Many business owners enter the entrepreneurial world without the proper financial knowledge, which is why they struggle to make a profit.

Like Cardone or not, it’s a fact that the more people learn about budgeting, saving, and investing, including those in entry-level jobs like fast-food workers, the more success in the workplace and personal life.

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According to a study, people with very low financial literacy are 3.5 times more likely to be financially fragile, four times more likely to lack even one month of emergency savings, and three times more likely to have poor retirement income planning.

While some find Cardone's tweet harsh, his underlying message resonates with many experts who agree that financial literacy is a significant issue in the U.S. that contributes to poor money management, high levels of debt, and the inability to build lasting wealth.

Personal finance expert Suze Orman also believes that 95% of Americans lack financial literacy. "I tell somebody to do a Roth IRA. They don’t have a clue what I’m talking about. I ask somebody, what’s in your retirement account? … They don’t have a clue. They don’t have a will. They don’t have a trust. They don’t have a durable power of attorney for healthcare or an advanced directive. They don't know what a 529 plan is. They don't understand," says Orman.

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On the other hand, while financial literacy is important, starting more businesses can still benefit the economy. New businesses bring fresh ideas, create jobs, and encourage competition, which helps everyone. They also allow people to become entrepreneurs, follow their dreams, and build wealth. Even though not all businesses succeed, those that do can make a big difference in boosting the economy.

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