Elon Musk warns that the United States is heading rapidly towards bankruptcy due to financial mismanagement and unsustainable spending habits.
The CEO of Tesla and SpaceX, Elon Musk, has cautioned that excessive government spending in Washington is driving the US towards insolvency at a fast pace.
A post on his platform X (previously, Twitter) was shared by Musk from another user’s profile on Thursday. The cited forecast from the US government budget predicted a rise in the deficit to approximately $16.3 billion by 2035, up significantly from its current value of $1.8 billion at present time.
“America is headed towards bankruptcy at a rapid pace due to the ongoing rates of government spending,” Musk stated.
In addition, the tech billionaire proposed that inflation in the country is a result of excessive government spending.
According to a Labor Department report released two weeks ago, the United States’ annual inflation rate fell below 3% in July for the first time since 2021. The cost of goods and services increased by 2.9%, while core inflation (excluding food and energy industries) rose by 3.2% over the previous year’s period.
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For the first time ever, the national debt of the country has reached over $35 trillion, with an increase by one trillion since January.
According to the Congressional Budget Office (CBO), America’s debt is anticipated to surpass $50 trillion by 2034, which would represent more than 122% of its GDP. Additionally, the CBO has forecasted an average annual growth rate for the country’s GDP at approximately 1.8%, spanning from 2029 until the year 2034.
According to the Committee for a Responsible Federal Budget (CRFB) think tank, President Joe Biden oversaw an increase of $4.3 billion in national debt during June, while his predecessor Donald Trump’s term witnessed a higher growth rate of $8.4 billion.
Trump and Musk had a lengthy interview on X during August. Afterwards, the Republican presidential candidate praised Musk as a “brilliant guy” and stated that he would potentially consider him for an administrative role if elected in November. In response to this offer, Musk claimed through social media that he is willing to serve.
