The businessman believes that the action the State applies in the economy must be minimized to achieve progress. He invited to reject the Infrastructure Law because it would increase the deficit.
The CEO of Tesla and SpaceX, Elon Musk, said that the federal budget and the debt of the United States of America are insane, and if there is no cut on government spending, something worse will happen. For that reason, he sees the State as a corporation with a monopoly based merely on violence. According to Musk, the State is the only one who is legally allowed to exercise violence.
Elon Musk expressed his concerns about the Build Back Better bill that the Joe Biden government promoted. This bill is a new law that would allow more than USD 2 billion in funds to boost infrastructure companies.
Musk believes that the Infrastructure Bill should get scrapped by Congress. From his point of view, the increasing intervention of the State in economic affairs is one of the biggest problems in the United States of America.
In that sense, the chairman firmly believes that the Government should get out of the way and not impede progress. In addition, he asked the State to stop being a player in the field since its intervention in the economy must get regulated.
Monetary Emission and Inflation
The businessman, who is also the third richest person worldwide, expressed concerns regarding the effects and impacts of inflation. Musk highlighted that a phenomenon such as inflation is the most regressive tax, but it gets defended by those who claim to be progressives. With this statement, he ironically referred to the politics of the economy.
The bitcoin mogul, which is popular for its supportive stance on cryptocurrency investment, stated that the ideology of progressing as a country and generating inflation at the same time is contradictory. They do not go together, which is why it holds the US Government responsible for this economic problem.
The US government has created several tools with the idea of rescuing the economy amid the coronavirus pandemic. This action took place without considering that the inorganic emission of money causes an excess of cash and, by the law of supply and demand, it loses its value.
The effects of the inorganic emission started to experience an expansion because, for October, the interannual inflation index was 6.2%, the highest in the United States of America in 30 years. And now, in parallel with the appearance of the new omicron, the new variant of covid-19, Powell told Congress that times of uncertainty and ambiguity about inflation figures are ahead.
Elon Musk appears to believe in bitcoin’s ability to offset the ills caused by government decisions regarding fiat money. The company he currently leads, Tesla, is one of the great accumulators of cryptocurrency and has 43,200 BTC in its treasury.
By: Jenson Nuñez
