Why Elon Musk thinks the US is going bankrupt | World News – Times of India

Elon Musk, Tesla CEO and cryptocurrency enthusiast, has recently voiced concerns about the US economy, warning that the nation could face bankruptcy “super fast” without significant intervention. He highlighted the escalating national debt, now exceeding $36 trillion, and the growing burden of interest payments, which have surpassed $1 trillion annually.
Musk emphasised the urgency of addressing this financial trajectory, stating, “We either fix this or go de facto bankrupt.” Interest payments on the national debt now exceed spending on national defence, marking a significant shift in federal budget priorities.
In response to these challenges, President-elect Donald Trump has appointed Musk to co-lead a new initiative aimed at implementing cost-cutting measures across federal operations. This move draws inspiration from Musk’s efficiency strategies in the private sector.
Musk’s approach includes advocating for the integration of innovative technologies, such as blockchain, to enhance government efficiency and transparency. He has also proposed appointing leaders with expertise in cryptocurrency and blockchain technologies to key government positions, signalling a potential shift towards embracing digital assets as part of the solution.
While his proposals have garnered support from some, critics caution that reliance on unproven technologies and significant spending cuts could pose risks, particularly to essential services like Social Security and Medicare. The debate continues as policymakers consider the best course of action to address the nation’s fiscal challenges.