‘Higher prices have caused me to lose business’: Owner details negative impact of inflation

From creamy fettuccine alfredo to cheesy mozzarella sticks, Daniel Lee sells it all at his Philadelphia restaurant, Farina Noodle and Pasta.

“I went to Italy, stayed there for three months,” Lee said.

But like many small businesses, Lee said his bottom line is taking a hit from rising prices and he said that has led to some tough decisions.

“You can’t hire as many people as you may want or even as many as you may need,” Lee said.

Tuesday on Capitol Hill, Lee told lawmakers about the challenges of trying to stay afloat.

“We’ve raised our prices to maintain revenue. Higher prices have caused me to lose business and lose money,” said Lee during the congressional hearing.

One conservative economist believes reducing regulations would help ease burdens on companies.

“It really matters to the economy how the regulations work and what does it cost to comply with the regulations, what do they allow you to do and stop you from doing,” said David Malpass, former president of the World Bank Group.

Members of both parties agree that families aren’t getting enough relief. Some Democrats blame corporations for artificially raising prices and they’re pushing for legislation to address it.

“The data is clear while families struggled, corporations took in record profits,” said Sen. Bob Casey, D – Pennsylvania. “If corporations are not engaged in price gouging, they should have nothing to worry about but if they’re engaged in corporate price gauging, there should be a penalty for that plain and simple.

But Republicans argue the White House is at fault for high inflation.

“The Biden administration has successfully pushed trillions of dollars in irresponsible deficit spending and put fuel on the inflation fire sweeping the country,” said Sen. Tommy Tuberville, R – Alabama.

While inflation is still a concern, experts say wages are growing nationwide. Some economists want Congress to consider policies that protect overtime and address minimum wage.

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