Tesla CEO Elon Musk thinks the US economy is approaching a recession, but he explained why it’s “actually a good thing”. Musk estimated that the next recession will last 12 to 18 months.

Elon Musk talks about the US recession

Tesla and Spacex CEO Elon Musk shared his thoughts on the US economy and the coming recession in a series of tweets on Thursday.

Responding to a question about whether “we are approaching a recession”, he replied: “Yes”. However, Musk noted, “it’s actually a good thing.”

The Tesla boss explained that “it has been raining money on fools for too long”, stressing that “some bankruptcies have to happen”. He explained: ‘All the Covid stuff at home has got people thinking you don’t really need to work hard. Rough awakening incoming!”

His tweet about the recession follows a statement he made last week that the US economy is “probably” in a recession. He warned that things “are going to get worse” and estimated that the recession could last 12 to 18 months.

“The honest reason for inflation is that the government printed a million dollars more than it had,” Musk added.

A growing number of investment banks have warned of a recession. Goldman Sachs Senior Chairman and former CEO Lloyd Blankfein recently said we are heading into a recession, advising businesses and individuals to prepare for it.

Additionally, Blackrock, the world’s largest asset manager, warned in a research note this week that efforts by the Federal Reserve to raise interest rates to offset record inflation could trigger a recession. “If they raise interest rates too much, they risk triggering a recession. If they don’t tighten enough, the risk becomes runaway inflation. It’s hard to see a perfect result,” Blackrock detailed.

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Do you agree with Elon Musk that a recession is a good thing? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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