The tech billionaire is set to co-lead a new agency tasked with tackling budget inefficiencies
The United States is at risk of bankruptcy unless… “Major and immediate” Elon Musk warned that measures are being taken to address government spending amid mounting federal debt.
The SpaceX CEO and Inc. Musk, who has previously raised concerns about possible US bankruptcy, repeated his warning in a post on X on Friday.
He added: “There is a need for significant and immediate action to prevent America from going bankrupt.” Musk wrote in response to a DOGE post discussing unchecked federal spending.
The Ministry of Economy and Finance noted that the last comprehensive review of the federal government took place in 1984, when the national debt was $1.6 trillion, and the debt-to-GDP ratio was about 38%. Today, the percentage has risen to more than 121%, and the national debt has exceeded $36 trillion. It is expected to hit the recently reinstated debt ceiling the day after Trump’s inauguration, according to Treasury Secretary Janet Yellen.
During Trump’s re-election campaign, Musk pledged to reduce government waste and streamline the federal bureaucracy. He initially proposed cutting the $7 trillion federal budget by $2 trillion. However, in a recent interview, Musk tempered expectations, describing the number as an “A.” “Best result.”
“If you try to get $2 trillion, you have a good chance of getting $1 trillion.” Musk told Stagwell CEO Mark Penn in a chat on X. He estimated that a $1-2 trillion reduction in federal spending would balance the production of goods and services with the money supply, helping to curb inflation.
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