Elon Musk Warns America Nearing Bankruptcy; Internet Reacts

“Those who make and pass the budget never go backwards. COVID emergency spending levels just became the norm even though revenue hasn't gone up to cover the excess spending,” wrote one of the X users

In response to the crisis, Wall Street Apes have proposed a new law that would make any member of Congress ineligible for reelection if the deficit exceeds 3 per cent of the country’s GDP

Source : X

The latest Department of Government Efficiency (DOGE) report reveals that the US government's financial crisis worsened in FY2023, with expenditures reaching a staggering $6.16 trillion, compared to just $4.47 trillion in revenue, resulting in a growing deficit. The last time the US ran a budget surplus was in 2001, and now there is increasing pressure to reverse this unsustainable trend. This raises the critical question: Can the US government balance its budget to prevent the risk of bankruptcy?

Elon Musk commented on these numbers in his latest X (formerly Twitter) post, writing, “America is currently headed for bankruptcy super fast." His remarks highlight growing concerns about the nation’s escalating fiscal issues and the potential consequences of continuing on this unsustainable path.

Meanwhile, in response to the crisis, Wall Street Apes have proposed a new law that would make any member of Congress ineligible for reelection if the deficit exceeds 3 per cent of the country’s GDP. This measure aims to incentivise lawmakers to address the deficit swiftly to secure their political futures. Warren Buffett backed the proposal, suggesting it could quickly resolve the issue by motivating Congress to take more responsible action in managing the nation’s finances.

America is currently headed for bankruptcy super fast https://t.co/Tm6JFJ6mef

— Elon Musk (@elonmusk) November 23, 2024

Several people in the comment section on Musk’s post shared their opinions. One user wrote, “At this point I don't think we can get out of bankruptcy Canada and the USA BUT!!  we can start with a new leading administration that actually knows what they are doing with current economics and the new monetary system that's about to emerge.”

“Those who make and pass the budget never go backwards. COVID emergency spending levels just became the norm even though revenue hasn't gone up to cover the excess spending,” added another user.

A third user wrote, “The government’s budget deficit is the surplus of the private sector (households + businesses). Governments do not go bankrupt because they run budget deficits. A public budget is not the same as a corporate budget. For the economy to grow, either the government must run a deficit or banks must create money out of thin air through lending. A budget deficit is a way to generate the demand needed for economic growth. In contrast, credit expansion by banks is actually more threatening to financial stability.”