Elon Musk emphasizes the urgent need for the US to address its escalating national debt.
Elon Musk has issued a stark warning, asserting that the US government faces de facto bankruptcy unless it tackles its burgeoning debt. The billionaire is slated to co-lead a new department focused on spending reduction under President-elect Donald Trump.
Musk’s comments followed a Kalshi post—a financial service enabling users to bet on future events—highlighting a 36% market probability of at least a $250 billion annual federal spending cut under Trump. Kalshi attributed this prediction to the anticipated impact of the Department of Government Efficiency (DOGE), which Musk will co-chair with Vivek Ramaswamy, in curtailing government expenditure.
Musk previously expressed alarm over the US gross federal debt exceeding $36 trillion in November, describing the situation as “terrifying.”
Last week, he utilized his substantial social media presence to influence the congressional debate on a temporary spending bill. Musk urged his over 200 million American followers on X to contact their representatives, advocating against a spending bill he deemed unacceptable.
While the 1,500-page bill failed to pass, so did an alternative championed by Trump and Musk, momentarily threatening a government shutdown. A compromise 118-page short-term solution was enacted after the Friday deadline and subsequently signed into law by President Biden on Saturday.
“President Trump’s return to the White House, coupled with Republican control of Congress,” Speaker Mike Johnson stated, “marks a significant shift. This short-term measure was a necessary step to bridge the gap.”