Elon Musk Warns: ‘America is Heading Toward Bankruptcy Super Fast’

Elon Musk, the billionaire entrepreneur and CEO of Tesla and SpaceX, is raising concerns about what he sees as a growing crisis in America: the rapidly increasing national debt. Musk claims that many Americans are unaware of the scale of the issue or its potential consequences.

“A significant percentage of people don’t even know that there is such a thing as a national debt!” Elon Musk posted on X, formerly known as Twitter.

“Those that do often don’t know how big it is or that our interest payments now exceed what we spend on our military. Only a small percentage understand that government overspending causes inflation.”

The National Debt Tops $36 Trillion

The U.S. national debt recently surpassed a staggering $36 trillion, prompting Musk to warn that “America is going bankrupt fast.” He argues that excessive government spending is driving inflation, saying, “All government spending is taxation.

This is a very important concept to appreciate. It is either direct taxation, like income tax, or indirect via inflation due to increasing the money supply.”

In another post, Musk cautioned that if the debt issue isn’t resolved, “all tax revenue will go to paying interest, and there will be nothing left for anything else.” He further warned that unchecked debt could lead to the dollar losing its value entirely.

President-elect Donald Trump has tapped Elon Musk, along with former Republican presidential candidate Vivek Ramaswamy, to lead the newly created Department of Government Efficiency (DOGE). The initiative aims to address government waste and implement large-scale reforms.

In a statement, Trump said DOGE will “provide advice and guidance from outside of Government, and will partner with the White House and Office of Management & Budget to drive large-scale structural reform, and create an entrepreneurial approach to Government never seen before.”

Elon Musk and Ramaswamy emphasized in an opinion piece for The Wall Street Journal that they will serve as outside volunteers rather than federal employees. The two said their focus will be on rooting out inefficiencies and finding ways to make the government more cost-effective.

Elon Musk has been outspoken about the connection between government spending and inflation, often sharing his views with his massive social media following. He has also expressed concerns about the long-term sustainability of the U.S. economy, warning that failure to address the national debt could lead to severe economic consequences.

“The dollar will be worth nothing if we don’t tackle the national debt,” Musk said earlier this year.