Tech entrepreneur Elon Musk has voiced significant concerns about the escalating U.S. national debt, emphasizing its potential impact on inflation and the economy. He pointed out on social media platform X that many Americans are unaware of the debt's magnitude or its implications, highlighting that interest payments now surpass military spending.
Former President Trump and Elon Musk at a SpaceX event. (Brandon Bell/Getty Images)
With the national debt exceeding $36 trillion, Musk warned of impending economic challenges if the issue remains unaddressed. He explained that excessive government spending fuels inflation, whether through direct taxation or by increasing the money supply. He stressed the urgent need to tackle the debt, cautioning that otherwise, all tax revenue could be consumed by interest payments, leaving no resources for other essential government functions.
Elon Musk at a rally for former President Trump. (Angela Weiss/AFP via Getty Images)
In response to these concerns, President-elect Trump has appointed Musk and former GOP presidential candidate Vivek Ramaswamy to lead the Department of Government Efficiency (DOGE). This initiative aims to identify and eliminate wasteful government spending, promoting a more streamlined and efficient approach. Serving as outside volunteers, Musk and Ramaswamy will collaborate with the White House and Office of Management & Budget to implement structural reforms.
Elon Musk listening to President-elect Trump. (Andrew Harnik/Getty Images)
