Musk says America ‘going bankrupt extremely quickly’
Date
9/18/2024 8:24:55 AM
(MENAFN) In a recent interview on the All-In podcast, Elon Musk, CEO of Tesla and SpaceX, raised alarms about the United States federal debt, claiming that the country is “going bankrupt extremely quickly.” He highlighted a troubling trend: the cost of servicing the national debt has now surpassed the annual defense budget, a situation he views as dire.
The United States Treasury revealed in late July that the national debt had exceeded USD35 trillion, marking a staggering increase of one trillion dollars in just six months. This financial strain has prompted concerns about the sustainability of UNITED STATES fiscal policies. In June, the House of Representatives approved a record USD895 billion defense spending bill, which represents a 1 percent increase from the previous fiscal year.
Musk pointed out that interest payments on the national debt have risen to levels higher than the total budget of the Department of Defense, which adds to his worries about the nation's financial stability. He emphasized that each trillion dollars added to the debt burden will ultimately fall on future generations, stating, “our kids and grandkids are going to have to pay somehow.”
Earlier this week, Musk shared insights on his X platform (formerly Twitter), referencing a finance-focused account that predicted the UNITED STATES would face over USD1.2 trillion in interest payments within the next year. This amount is reportedly equivalent to about 25 percent of total government revenue, underscoring the gravity of the situation.
Musk has consistently warned about the implications of government overspending, suggesting that it not only threatens the nation's financial health but also contributes to inflationary pressures. In August, the UNITED STATES Labor Department reported that annual inflation had dipped below 3 percent for the first time since 2021, with overall prices rising by 2.9 percent. However, core inflation, which excludes volatile food and energy prices, rose by 3.2 percent over the past year.
The combination of rising debt, high interest payments, and increasing government spending has sparked a heated debate about fiscal responsibility in the UNITED STATES As concerns mount, the question remains: how will the government address this looming financial crisis?
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