World’s richest man calls recession a ‘good thing’


Elon Musk complained that too many fools are getting rich

Elon Musk, the world’s richest man, tweeted praise for the recession facing the US in response to a follower’s question, suggesting it’s actually a “good thing” because “it’s been raining money on fools for too long.” He accuses “covid-19 stay at home” for “trick“people thinking they could make money without having to ‘work hard’, suggesting that many people were in a “rude awakening.”

Doubling down on his praise of the burgeoning economic disaster, Musk expanded on his philosophy in response to another follower’s tweet, calling for “companies that have inherently negative cash flows (i.e. value destroyers)” for “die, so they stop consuming resources.”

It’s unclear which companies Musk was referring to. The massive market capitalization of his own electric car company, Tesla, was largely based on government subsidies for green energy.

Although it has since become profitable, it certainly didn’t start out that way. Twitter too – which Musk agreed to buy for $44 billion earlier this month – has posted a loss every year it has operated except 2018 and 2019.

Musk appears to be aware of Twitter’s profitability issues, having suspended the deal to acquire the social media platform until the percentage of bots and spam accounts is reduced to less than 5%. With only 217 million”monetizable” users who see ads on the platform, Twitter is no match for Facebook, financially speaking – Mark Zuckerberg’s social network has 1.93 billion subscribers, even if its own income has also fallen. However, Musk has given some clues as to how he plans to make Twitter profitable.

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SpaceX CEO predicted in his value-destroying companies tweet that the economic downturn would last”about 12 to 18 months“after announcing during a live appearance at the All-In Summit in Miami Beach that the U.S. economy was “Most likelyin times of recession.

The United States has been sliding into a recession since the Covid-19 pandemic led state and federal governments to impose economic shutdowns on nearly every business sector, then print trillions of dollars in an attempt to compensate for the budgetary holes that these policies have produced.

Massive unemployment programs and loans to struggling businesses have also contributed to the economic black hole that has swallowed up the economic gains made in the early years of the Trump administration, with many working-age Americans choosing to stay home instead. than to return to jobs they found demeaning. or insufficiently remunerative, while soaring commodity prices triggered by the US response to the Russian offensive in Ukraine served as the icing on the depression cake.

As inflation hits near-record highs – at 8.3%, more than four times the Federal Reserve’s target rate of 2% – the United States is wading into economically uncharted territory. The Fed has raised interest rates several times and agreed to do so again at its policy meeting earlier this month, with further hikes expected in June and July.




RT

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