Elon Musk, CEO of Tesla and SpaceX, believes the US economy is in a crisis and that it will be “difficult going” for the next 12 to 18 months. “The true cause for inflation is that the government printed a zillion more dollars than it had,” he continued.
Elon Musk on the US Economic Crises
On the All-In podcast, Elon Musk, the CEO of Tesla and SpaceX, discussed the US economy.
Musk, when asked if the US economy is in an economic crisis, said:
We’re probably in a recession, and it’ll only get worse, but these things pass, and boom times will return… It’ll probably be difficult for a year, maybe 12-18 months.
He went on to say that a correction could take anywhere from 12 to 18 months. Fears of a recession have risen recently as the Federal Reserve tightens monetary policy to combat inflation.
Musk explained that, in his opinion, recessions aren’t always bad, noting that he’s experienced a couple throughout his time working for public firms. “What happens when you have a boom that lasts too long is that you get misallocation of capital — it simply starts showering money on fools,” he explained.
The Tesla CEO explained that the increased prices were due to money printing:
The true cause of inflation is that the government printed a billion dollars more than it had before… This isn’t a particularly difficult situation.
Musk went on to say that countries like Venezuela have already taken the same route.
The Tesla CEO is now negotiating the purchase of Twitter Inc. He made a $44 billion bid to the social media behemoth, which Twitter accepted. The agreement, however, has been put on hold.
Musk has also hinted that he would try to negotiate a cheaper price for Twitter, claiming that there are at least four times as many false accounts as the business claims. “You can’t pay the same money for something that is significantly worse than they advertised,” he said.
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