US in ‘fast lane’ to bankruptcy – Musk

Government overspending is to blame for inflation in America, the tech billionaire has argued

The US is rapidly moving towards bankruptcy because the government in Washington is spending too much money, Tesla and SpaceX CEO Elon Musk has warned.

On Thursday, Musk shared a post on his X (formerly Twitter) platform by another user, who cited a forecast from the US government budget for fiscal year 2025 that said that the budget deficit could increase from the current $1.8 billion to almost $16.3 billion by 2035.

"At current rates of government spending, America is in the fast lane to bankruptcy,” Musk wrote.

The tech billionaire also suggested that “government overspending is what causes inflation” in the country.

The US annual inflation rate dipped below 3% in July for the first time since 2021, according to a Labor Department report, issued two weeks ago. The prices for goods and services went up by 2.9%, while core inflation, which excludes food and energy industries, rose by 3.2% over the previous 12 months.

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In late July, the US Treasury Department announced that the country’s national debt surpassed $35 trillion for the first time in history, increasing by a trillion since January.

The Congressional Budget Office (CBO) predicted that by 2034 the debt will exceed $50 trillion, amounting to more than 122% of America’s GDP. The CBO also said that it expects the country’s average annual GDP growth rate to be at around 1.8% from 2029 to 2034.

In June, the Committee for a Responsible Federal Budget (CRFB) think tank claimed that the national debt grew by $4.3 billion under incumbent US President Joe Biden, compared to $8.4 billion during Donald Trump’s term in office.

In August, Trump gave a lengthy interview to Musk on X. Shortly after that, the Republican presidential candidate said that he would consider the tech billionaire, whom he described as a “brilliant guy,” for a role in his administration if he wins the election in November. Musk replied to the offer in a post, stressing that he is “willing to serve.”