Elon Musk Persistently Predicts Trump's Economic Downfall
Elon Musk Persistently Predicts Trump's Economic Downfall
Renowned economists and financial experts have been expressing concerns that another term for President Donald Trump could inflate the federal deficit by numerous trillions of dollars, exacerbate inflation, and eventually propel the U.S. economy towards a recession (or even a depression). Incredulously, Trump's primary campaign strategist, Elon Musk, shares this view that the candidate's policies could harm the economy.
For the second consecutive week, Musk has subtly insinuated that a second term for Trump would bring economic hardships to the American people, which is eerily plausible, if not amusing. The first instance occurred during a "Telephone Town Hall" hosted on Musk's website X, where Musk cryptically claimed: "We must reduce spending to live within our means. And that necessarily involves some temporary hardship, but it ensures long-term prosperity." Musk, speaking about reducing the national debt, did not elaborate on the subject at hand.
If that didn't unsettle any voters, Musk did not do anything to relieve their worries when he again appeared to endorse a challenging economic future for Americans, by replying to a right-wing X account that had written an essay about an impending economic "tumble."
If Trump successfully carries out mass deportations, complemented by Musk's government cuts, as Musk himself puts it, "crazy as it sounds, firing people and reducing the deficit – there will be an initial severe reaction in the economy." This economy that relies on debt for growth and has artificially suppressed wages as a result of illegal immigration will inevitably suffer, with markets crashing. However, once the turbulence clears, there will be a swift recovery to a stronger, more stable economy. Future history may be rewritten in the forthcoming two years.
Numerous economists have cautioned that Trump's plans could be disastrous for the U.S. economy. His calls for the removal of millions of undocumented immigrants, the granting of substantial tax breaks to the wealthiest Americans, weakening of the U.S. dollar, and imposition of global tariffs, have all been labeled as ill-advised actions that could exacerbate the deficit, prompt inflation, and cause turmoil. Trump advisors have proposed measures, such as drastically cutting federal spending and laying off thousands of government employees, which would only add to the chaos. Surprisingly, Musk - one of Trump's closest allies - has acknowledged these potential issues, despite the highly contested nature of the current presidential race.
Many reasons have been proposed for Musk's unexpected admission. It is noteworthy that one of Musk's heroes is Argentina's President Javier Milei, who is credited with "taking a chainsaw" to his country's government. Milei, a devout free-market advocate and critic of progressive values, took office in December 2023, and has implemented an "austerity" budget featuring economic "shock treatment." This strategy has involved slashing government spending on social welfare programs, devaluing the peso, and eliminating thousands of government jobs, all with the goal of a vaguely defined economic revival in the near or distant future.
The parallels between Milei's government and the plans espoused by Trump's supporters are striking. Although Argentina and the U.S. are distinct nations, the ideology that drives Milei's transformation of his government and the ideology that animates many of Trump's advisors is fundamentally the same. ProPublica recently revealed the expressed aspirations of powerful Trump advisor, right-wing libertarian, Russell Vought, who is said to be a key figure in Project 2025, the anti-government initiative sponsored by the Heritage Foundation. Vought has similarly suggested drastic reorganization of the federal government and personally tormenting career civil servants. Musk himself has advocated for a "Government Efficiency" task force, whose goal would be to "audit" government departments, searching for inefficiencies. Like Milei's approach, Trump's advisors see a more streamlined, pared-down bureaucracy as the recipe for future national wealth.
However, under Milei's leadership, Argentina has not experienced a surge in wealth concurrently. The nation's poverty rates have climbed by 10 percent in the first six months of his presidency, and last year, its inflation rate soared to 211 percent - the highest it had been in 32 years. Unemployment and homelessness rates have reportedly increased, with many Argentinians eking out a living by rummaging through dumpsters. Although inflation in the country has recently begun to decrease, it had reached the highest level on a global scale. When Milei was inaugurated last December, his assumed comment was: "We know that in the short term, the situation will worsen." Mission accomplished, one might say.
Funny enough, Trump's economic strategies appear tailored to inflict damage on his supporters' livelihoods - a reality they seem oblivious to. Take, for example, Trump's promise to eliminate taxes on Social Security. Folks at a recent rally enthusiastically endorsed this idea, presumably hating taxes. Yet, it's taxes that keep Social Security afloat. If Trump follows through, it'd be like a bank telling a struggling business it's pulling their credit line - the business would struggle and likely cease to exist. Eliminating taxes on Social Security means starving and bankrupting the program within a few years, plunging tens of millions of Americans into poverty. On the other hand, Harris has declared intentions to save the program by hiking taxes on the wealthiest 1%.
The positive side to this situation is that if Trump manages to snag the presidency and pushes for his team's bizarre, right-wing economic plans, he'd require Congress' approval to pass them. The odds of getting such approval seem slim. However, the fact that these harmful proposals are even being suggested is chilling enough.
Despite Musk's close alliance with Trump, he has acknowledged the potential economic challenges that Trump's policies could bring. In a hypothetical scenario, Musk suggests that mass deportations and government cuts might lead to an initial economic downturn, but eventually, it could lead to a stronger, more stable economy.
Musk's views align with Argentina's President Javier Milei, who implemented austerity measures, leading to initial economic turmoil, but later, promised a revival. However, Argentina's poverty rates increased, inflation soared, and unemployment and homelessness rose during Milei's first six months in office. This serves as a cautionary tale, suggesting that Trump's economic strategies may negatively impact many Americans' livelihoods, especially if he eliminates taxes on Social Security, potentially bankrupting the program.