Government overspending is to blame for inflation in America, the tech billionaire has argued<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
“At current rates of government spending, America is in the fast lane to bankruptcy,\u201d Musk wrote.<\/p>\n\n\n\n
The tech billionaire also suggested that \u201cgovernment overspending is what causes inflation\u201d in the country.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
In late July, the US Treasury Department announced that the country\u2019s national debt surpassed $35 trillion for the first time in history, increasing by a trillion since January.<\/p>\n\n\n\n
The Congressional Budget Office (CBO) predicted that by 2034 the debt will exceed $50 trillion, amounting to more than 122% of America\u2019s GDP. The CBO also said that it expects the country\u2019s average annual GDP growth rate to be at around 1.8% from 2029 to 2034.<\/p>\n\n\n\n
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\u2019s term in office.<\/p>\n\n\n\n
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 \u201cbrilliant guy,\u201d 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 \u201cwilling to serve.\u201d<\/p>\n\n\n\n