Elon Musk has issued a stark warning about the US economy, saying the country is heading towards financial collapse unless major changes are made, Benzinga reports.
In a recent appearance on The Joe Rogan Experience, Musk didn’t hold back, saying the country’s growing debt is causing the upcoming crisis.
“We’re drowning in debt,” Musk said, pointing to the US’s $36.14 trillion debt, as reported by the Treasury Department. He warned that interest payments alone now make up 23% of all federal revenue. “If this keeps up, the entire government budget will go to paying interest. That means no money for Social Security, no Medicare, nothing. America would be toast.”
In 2024, the US government spent more than $1 trillion on interest payments, which is a significant portion of its $4.92 trillion revenue. Experts predict these payments will continue to rise, potentially surpassing spending on Medicare and defence in the next decade.
Musk suggested a solution: cutting federal spending by 30%. However, this has faced pushback from some experts, including Marc Goldwein from the Committee for a Responsible Federal Budget, who called such cuts “borderline impossible” without severely impacting programs like Social Security.
When asked about the effects on everyday Americans, Musk said, “It means inflation will spike, jobs will disappear, and systems we rely on will collapse,” he warned.
Treasury secretary Janet Yellen has also raised alarms, warning Congress that the US could hit its debt ceiling as early as January 2025, urging swift action to avoid financial disaster.
