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US to cut costs to avoid bankruptcy

The call is from Elon Musk and it comes on election day for a new US president

Nov 5, 2024 09:55 174

US to cut costs to avoid bankruptcy  - 1

Elon Musk said that the US is headed for bankruptcy, so that the government should reduce government spending. "America is headed for bankruptcy," Musk said during an interview with American TV host Joe Rogan. “We have to reduce government spending, otherwise we will simply go bankrupt. The entrepreneur added that the US military budget is about 1 trillion. USD per year, and interest payments on the national debt already exceed the budget of the US Department of Defense and continue to grow every month.

According to Musk, the US government “doesn't even know how many government agencies there are”, their number reaches 450 departments at the federal level alone. “There are almost twice as many agencies in the US as the number of years this country has existed. “This is crazy,”, Musk said.

In July, the US Treasury Department announced that the country's national debt exceeded $35 trillion for the first time in history. According to projections by the Congressional Budget Office, this figure will exceed $50 trillion in 2034, amounting to more than 122% of GDP. At the same time, according to the department's estimates, the average annual growth of the US GDP in 2029-2034 will be 1.8%.