Queen Nwabueze
The billionaire, Elon Musk has slammed the president Joe Biden administration for printing “a zillion” more dollars, whining it will land the US into a recession that could last up to 18 months.
Musk made the comments at a tech conference in Miami on Monday, affirming that he believed that the US was in for a recession that will get worse, soonest.
Join our WhatsApp ChannelApparently, Musk blamed the recession on President Joe Biden and his administration.
“This administration, it doesn’t seem to get a lot done,” Musk said. “The Trump administration, leaving Trump aside, there were a lot of people in the administration who were effective at getting things done.”
“The obvious reason for inflation is the government printed a zillion amount of more money than it had. The government can’t just issue checks for an excessive revenue without there being inflation. Velocity of money held constant,” Musk explained.
He then added: “This is not, like, super complicated.”
The Tesla founder and CEO who made the comment via video at All-In, a Miami tech conference hosted by the All-In podcast, really emphasized that the recession could last anywhere from a year to 18 months.
Musk then underscored at the conference: “Recessions are not necessarily a bad thing. I’ve been through a few of them. And what tends to happen is if you have a boom that goes on too long, you get a misallocation of capital. It starts raining money on fools, basically.”
He continued, when this situation “gets out of control,” the economy has a misallocation of human capital “where people are doing things that are silly and not useful to their fellow human beings.”
Also, Musk joked that an “economic enema” would eventually need to “clear out the pipes.”
“And sort of the bullsh*t companies go bankrupt, and the ones that are doing useful products are prosperous,” he said.
“And there’s certainly a lesson here that if one is making a useful product and has a company that makes sense: Make sure you’re not running things too close to the edge from a capital standpoint,” Musk continued. “They’ve got some capital reserves to last through irrational times.”
It’s not the first time Musk has commented on a potential recession. In 2021, the Tesla CEO said he believed the next recession would come within the next two years.
Prime Business Africa recalls, the billionaire has always been critical of the Biden administration in the past. Earlier this year, Musk called Biden a “damp sock puppet in human form.” He has continually criticized the administration after the White House failed to invite Tesla to an EV summit and praised General Motors and Ford over Tesla.
“It’s hard to tell what Biden’s doing, to be totally frank,” Musk said on Monday.
