Tesla and Spacex CEO Elon Musk says that the U.S. economy is probably in a recession and it could be “tough going” for 12 to 18 months. He added: “The honest reason for inflation is that the government printed a zillion more money than it had.”
Elon Musk on U.S. Recession and Inflation
Elon Musk, the CEO of Tesla and Spacex, talked about the U.S. economy on the All-In podcast, published Monday.
Commenting on whether the U.S. economy is in a recession, Musk said:
We probably are in a recession and that recession will get worse but these things pass and then there will be boom times again … It’ll probably be some tough going for, I don’t know, a year, maybe 12-18 months.
He added that 12 to 18 months is roughly the amount of time for a correction to happen. Recession fears have escalated recently as the Federal Reserve tightens monetary policy to help cool down inflation.
Musk explained that in his opinion, recessions are not necessarily a bad thing, emphasizing that he’s been through a few of them in his time at public companies. “What tends to happen is, if you have a boom that goes on for too long, you get misallocation of capital — it starts raining money on fools, basically,” he described.
Noting that the rising prices resulted from money printing, the Tesla boss said:
The honest reason for inflation is that the government printed a zillion more money than it had … This is not like, you know, super complicated.
Musk added that countries like Venezuela had already been down the same path.
The Tesla executive is currently in the middle of a takeover bid to buy Twitter Inc. He offered the social media giant about $44 billion which Twitter has accepted. However, the deal is now on hold.
Musk has also indicated that he may seek a lower price for Twitter, stating that there could be at least four times more fake accounts than what the company has said. He opined: “You can’t pay the same price for something that is much worse than they claimed.”
What do you think about Elon Musk’s comments? Let us know in the comments section below.
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Source: https://news.bitcoin.com/elon-musk-us-economy-is-probably-in-recession-that-could-last-18-months-warns-it-will-get-worse/