Featured Image Credit: Alex Wong / Staff / JIM WATSON / Contributor / Getty
As some markets in the USA continue to soar in a post-election boom, there are general worries about the state of the country and how much money is left in the bank.
Donald Trump's new tech-savvy stance has that industry head on an upward trajectory, while cryptocurrency has also never been higher.
Unfortunately, crypto's record highs are seemingly linked to a spiralling national debt that Elon Musk thinks is steering the USA toward bankruptcy.
Few have benefited quite as much as Musk, and as well as landing a new position as a co-head for the Department of Government Efficiency (DOGE), he's added some serious dollars to his net worth.
Advert
Even if he's sitting pretty as his own Scrooge McDuck, he's warned about the 'unsustainable' national debt that's pushing America to its limit.
Sharing a post from the official DOGE account, Musk said the USA is heading toward bankruptcy 'super fast.'
The DOGE says the U.S. Government spent $6.16 trillion in the 2023 financial year but only brought in $4.47 trillion.
America is currently headed for bankruptcy super fast https://t.co/Tm6JFJ6mef
— Elon Musk (@elonmusk) November 23, 2024
It comes as DOGE plans to slash $2 trillion from government spending - although many think it can't be done.
The last budget surplus was in 2001, and while there were worrying headlines that $1 trillion was being added to the national debt every 100 days toward the start of 2024, that's now a concerning $1 trillion every 90 days.
With cuts sure to hit discretionary spending sectors including defense, transportation, education, training, employment, and social services, there are concerns that spending has never been higher in terms of defense. If Musk is going to cut that elusive $2 trillion, whole departments might have to close. Out of the $1.7 trillion spent on discretionary outlays in the 2023 fiscal year $917 million went on non-defense and a whopping $805 went on defense.
Trump skeptics point to how $7.8 trillion was added to the national debt during his original term, although others point to how the Biden administration has added $7.29 trillion (mainly due to COVID-19 relief).
It's clear that more money going out than in is a problem, and despite most presidents increasing the national debut during their time in office, Musk is rightly concerned about where things are heading.
Responding to Musk, one critic wrote: "You can’t spend more than you make and stay in business. At least that’s true for every business except the government."
Another added, "Easily fixed if the ultra rich pay their fair share. But you won’t, so we stay in the red," and a third said, "Technically we are already bankrupt. I’d be in chapter 7 if this were a restaurant. But they steal from us over and over."
Others were firmly behind Musk, with someone cheering: "DOGE can make an efficient dent in deterring that hopefully, right? 🙏✨"
With Biden's time in the Oval Office coming to an end and Trump heading back to power with Elon Musk by his side, only time will tell whether the DOGE can do its job or it’s just another fancy department for doing nothing.
