Elon Musk, the world’s richest man, believes it would be beneficial for the US economy to go into recession and says some bankruptcies need to happen.
Tesla’s CEO said that the national economy will have a negative performance. He also said that working from home has made Americans lazy.
When asked by a Twitter user if he thought there would be a recession, Musk replied: “Yes, but it’s actually a good thing. . He has been raining money on fools for too long.”
Then he added: “Some bankruptcies must happen. Plus, all the staying home COVID stuff has misled people into thinking you don’t really need to work hard.”
Musk was then asked how long he thought it would last. recession.
“According to past experience, between 12 and 12 months,” replied the tech tycoon.
“Companies that are inherently of negative cash flow (that is, value destroyers) must die, so that they stop consuming resources”, he added, according to The New York Post.
Experts have said that there is a greater risk of the US economy slipping into recession due to inflation rates that remain high, as well as COVID-related disruptions to supply chains.
Furthermore, Gross domestic product, which is the broadest measure of goods and services produced in the entire economy, fell 1.5% in the first quarter. and of 2022.
The 1.5% contraction contrasted sharply with the 6.9% GDP growth reported in the last quarter of 20 .
Analysts said this result was due to continued spending by US consumers on imports, which exceeded spending on exports.
Without the trade imbalance, the GDP would have been 3.2% higher.
The contraction was also attributed to a lower replenishment of products in stores and warehouses, which reduced 1.1% of GDP.
The economy continues to be weighed down by high levels of inflation, which has led to analysts to increase the chances of a recession.
The consumer price index rose 8.3% in April.
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