Billionaire Elon Musk believes that one entity is the culprit behind the rising prices of goods and services in the US.
The Tesla CEO says on the social media platform X that the underlying cause of inflation in the US is the federal government’s huge budget deficit.
“Inflation is caused by the federal government spending more than it earns, because they just print more money to make up the difference. To solve inflation, reduce wasteful government spending. Your tax dollars should be spent well, not poorly.”
Data from the U.S. Treasury Department shows that the national deficit has ballooned to $1.516 trillion in just the first 10 months of the 2024 fiscal year. The Congressional Budget Office (CBO) expects the national deficit to soar to $2 trillion by September 30th, 2024, when the current fiscal year expires.
In an interview with podcaster Lex Fridman, Musk, the co-founder of PayPal and the wealthiest person on the planet says he’s willing to share his expertise with the government to improve the nation’s fiscal situation.
“I have discussed with [Donald] Trump the idea of a government efficiency commission, and I would be willing to be part of that commission…
The antibody reaction would be very strong. You’re attacking the matrix at that point. [The] matrix will fight back.”
Coinbase CEO Brian Armstrong agrees with Musk, saying that inflation would virtually vanish if the US government stopped printing more dollars.
“People tie themselves in knots trying to explain causes of inflation, but the primary cause is the government spending more money than it has, and needing to print more.
Neutralize that, and most inflation problems go away.
Bitcoin is the check and balance on excessive inflation. Buying it is a vote against inflation.”
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