Tesla CEO Elon Musk on Thursday explained why he thought a possible incoming recession is “actually a good thing,” adding that he predicts it could last up to 18 months.
Musk, the world’s richest man, has been at the forefront of the news in recent weeks as he moves to acquire Left-wing social media platform Twitter.
“Do you still think we’re approaching a recession?” a Twitter user asked Musk.
“Yes, but this is actually a good thing,” the SpaceX founder responded. “It has been raining money on fools for too long. Some bankruptcies need to happen.”
“Also, all the Covid stay-at-home stuff has tricked people into thinking that you don’t actually need to work hard,” Musk added. “Rude awakening inbound!”
Yes, but this is actually a good thing. It has been raining money on fools for too long. Some bankruptcies need to happen.
Also, all the Covid stay-at-home stuff has tricked people into thinking that you don’t actually need to work hard. Rude awakening inbound!
— Elon Musk (@elonmusk) May 27, 2022
Another Twitter user asked Musk how long he thinks a possible recession could last, “How long do you think this recession will last Elon? You called it!! Just curious could this one last year(s)??”
“Based on past experience, about 12 to 18 months,” he responded. “Companies that are inherently negative cash flow (ie value destroyers) need to die, so that they stop consuming resources.”
Based on past experience, about 12 to 18 months. Companies that are inherently negative cash flow (ie value destroyers) need to die, so that they stop consuming resources.
— Elon Musk (@elonmusk) May 27, 2022
As Americans suffer through record-high inflation, food shortages, and climbing gas prices, economists have predicted a coming recession.
When President Joe Biden was pressed on the important matter this week, he said a recession is not inevitable.
“Given the cross-currents of the economy right now — the war in Ukraine, the China lockdowns that we’ve seen — should Americans be prepared for a recession? In your view, is a recession in the United States inevitable?” a reporter asked, The Daily Wire reported.
The president answered “no” and seemed to champion high gas prices as an “incredible transition” that will leave America “stronger.”
“Here’s the situation,” Biden said. “And when it comes to the gas prices, we’re going through an incredible transition that is taking place that, God willing, when it’s over, we’ll be stronger and the world will be stronger and less reliant on fossil fuels when this is over.”
In another seeming spin, White House economic advisor Cecilia Rouse claimed earlier this month that Americans are seeing record-breaking inflation levels because Biden has done an “effective” job at managing the COVID-19 pandemic, The Daily Wire reported.
“What we have seen is that all advanced countries are trying to address inflation and they have, you know, historic levels of inflation,” Rouse said on CNN airwaves. “That has been the consequence of mounting an effective response to the pandemic. Because while we supported households and businesses, got shots into arms, which allowed people to start to come out of their homes and regain their lives, our supply chains could not support that demand. … This is a consequence of having an effective strategy against the pandemic.”
Source: Dailywire
