Elon Musk Doesn’t shy away from big ideas or bold predictions, but his latest warning is a wake-up call for America.
During a recent appearance at Which patient experienceMusk pulled no punches when discussing the US economy. His verdict? If drastic action is not taken, the country is heading towards financial collapse.
“We’re drowning in debt,” Musk said, referring to America’s $36.14 trillion in debt as reported by the Treasury Department. He explained that interest payments alone comprise 23% of all federal revenue. “If this continues, the entire government budget will go to pay interest. That means no money for Social Security, no Medicare, nothing. America will be toast.”
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Musk’s warning struck a nerve and for good reason. Interest payments on loans are already skyrocketing. In 2024, the government spent more than $1 trillion on interest—a staggering figure compared to $4.92 trillion in total revenue.
The Congressional Budget Office predicts that those payments will continue to grow, potentially outpacing Medicare and defense spending within a decade.
Musk didn’t stop at identifying the problem; He proposed a solution: a 30% cut in federal spending. However, not everyone thinks this is realistic. Mark Goldwyn, an expert on the Committee for a Responsible Federal Budget, was quick to criticize Musk’s suggestion.
“Cuts of that magnitude would be borderline impossible without touching programs like Social Security or causing severe economic pain,” Goldwein said. He added that most of the federal budget is tied up in mandatory spending, leaving little room for discretionary cuts.
Ever the skeptic, Joe Rogen asked Musk how this would affect everyday Americans. Kasturi didn’t sugarcoat it. “This means inflation will rise, jobs will disappear and the system we rely on will collapse,” he said. “It’s not some distant possibility – it’s already starting to happen.”
Experts are divided on Musk’s approach but agree debt crisis is serious According to the Peterson Foundation, unexamined debt can lead to higher interest rates, slower economic growth and lower household incomes.
