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The world’s richest man appears to believe that Donald Trump’s presidency must cause the economy to collapse in order to benefit the American people.
Elon Musk on Tuesday agreed that the federal government’s proposed deep cuts, coupled with President Trump’s sweeping deportations, would likely cause a “crash” in global markets.
Musk said in a virtual town hall last week that Americans will experience “temporary hardship” for “long-term prosperity.”
“To live within your means, you have to cut your expenses,” Musk said. He became director of the new Office of Government Efficiency under the second Trump administration.
“We’ll balance the budget right away,” he insisted Friday, adding that “a lot of people who use government will be upset about that,” adding, “We’re probably going to need a lot of security.” “However, there is ample guarantee.” You should do it. ”
“If that’s not done, we’re just going to go bankrupt,” he said.
His political action committee similarly said, “America is on a fast track to bankruptcy.” There is no evidence that the United States will go “bankrupt.”
On Tuesday, Musk agreed in a social media post on his X platform that Trump’s proposal would have a “serious” economic impact.
“If Trump succeeds in forcing mass deportations, and Elon succeeds in hacking the government to fire people and reduce the deficit, we will see the first serious overreaction in the economy.” @FischerKing64 wrote in X. Debt (the creation of asset bubbles) and artificially suppressed wages (as a result of illegal immigration). The market will crash. But once the storm passes and we all realize we are on better footing, we will quickly recover to a healthier, more sustainable economy. ”
“You’re right,” Musk replied.
Donald Trump’s ally Elon Musk said in a speech at Madison Square Garden on October 27 that he would cut the US budget by one-third (Reuters)
Mr. Trump and Mr. Musk are proposing creating a Government Efficiency Office that would conduct a “complete financial and performance audit of the entire federal government” with “recommendations for fundamental reform,” the former president said last month.
Before introducing Melania Trump at the former president’s rally at Madison Square Garden on Sunday, Musk said he would remove “at least $2 trillion” from the federal budget, or about a third of existing spending. He said it could be reduced.
“Your money is being wasted,” he said. “We’re going to get the government off your back and out of your pocketbook.”
Mr. Musk is one of the biggest campaign spenders, pumping at least $132 million into campaigns to elect Mr. Trump and the Republican Party this year, according to federal campaign finance documents.
Tesla CEO and owner of Ta. The Justice Department issued a warning to his PAC last week.
He is not alone among President Trump’s wealthy and influential allies promoting the idea of economic collapse as an inevitable byproduct of Trump’s policies.
Cantor Fitzgerald CEO Howard Lutnick, co-chair of President Trump’s 2025 transition team, said last week that Republicans believe President Joe Biden’s administration and Vice President Kamala Harris have failed on policy. Despite his claims, he agreed that President Trump’s proposed import tariffs would raise the price of consumer goods. The daily cost of living for Americans is lower.
“Correct: If you raise tariffs on just this particular product, yes, you’re right, prices will go up,” he told CNBC’s Squawk Box.
Musk wants to run ‘Government Efficiency Office’ under Trump administration (AFP via Getty Images)
President Trump’s running mate, J.D. Vance, also suggested that these cost increases would be offset by higher wages, but there was no guarantee.
“From a consumer perspective, everything you lose in tariffs you gain in higher wages, so you end up much better off in the end,” he told NBC’s Meet the Press this summer.
President Trump has imposed a 60% tariff on all imports, including a 60% tariff on imports from China, a 100% tariff on products from countries that no longer trade with the dollar, and a 2000% tariff on cars made in Mexico. proposed a 20% tariff on .
He also floated the unlikely idea that he could eliminate all federal taxes and rely solely on tariffs to support the country’s multitrillion-dollar annual budget.
A group of Nobel Prize-winning economists warned that President Trump’s economic plan “will lead to higher prices, wider deficits and greater inequality.”
