During his administration, President Joe Biden has made it clear that his priority is inflation, especially in an increasingly challenging economic context, added to factors external to the country that have seriously impacted his performance.
Biden argued that some of the “roots of inflation” are “out of (his) control,” referring to the effects of the covid-19 pandemic or the effects of Russia’s war against Ukraine. His message is known at a time when gasoline prices reached a new record.
Despite his manifest commitment, inflation continues to be a matter of concern to the inhabitants of the North American country. According to the most recent report from the Department of Labor’s Bureau of Labor Statistics, inflation stood at 8.3% during the month, two points less than in the 12 months ending last March, when it reached 8.5 %.
An issue that, without a doubt, permeates the business world. In chapter #69 of The All-in Podcastthe star guest was the tycoon Elon Musk, who took advantage of the space to refer to the subject, after one of the drivers asked him his perception of the controversy caused by Jeff Bezos’ response to a trill published by the US president.
“The newly created disinformation board should review this tweet, or maybe they need to form a new board it does not follow instead. Increasing taxes on companies is fine to discuss. Taming inflation is essential to discuss. Mixing them together is just misdirection,” the billionaire trilled, responding to Biden’s call for larger companies to “pay their fair share.”
The owner of Tesla Motors bluntly referred to the Biden administration and assured that his management has a lot to do with the current situation of the United States economy.
“I mean the obvious reason for the inflation is that the government printed a hell of a lot more money than it obviously had.” Musk assured during the episode, further explaining that the government cannot simply issue money or checks above actual income, without leading to inflation.
“So, if more dollars are created than the increase in the production of goods and services in the economy, then there is inflation,” he pointed out. Likewise, he emphasized that it is a basic concept of economics.
During his speech at the showwhich is broadcast through the official YouTube channel of The All-in Podcast, Musk stressed that it is not the first time that the world has witnessed what the uncontrolled issuance of money generates, specifically mentioning the example of Venezuela.
“Have you seen Venezuela?”, he asked the hosts of the program and the audience that closely followed the broadcast. “The poor people of Venezuela have just been trampled on by their government,” she added.
In that same line, The tycoon insisted that the worst idea is to continue ‘printing’ resources, since this will only generate the opposite effect to what is sought, which is to stabilize inflation and strengthen the economy. Faced with this scenario, Musk stated that it would seem very easy to issue and issue money and not evaluate the consequences.
“If the government could just issue massive amounts of money and have it, and deficits didn’t matter, then why don’t we make a deficit a hundred times bigger?” he exclaimed in his speech.
The businessman took advantage of the stage to express his concern about the value of the dollar if he continues down this path: “basically it will turn the dollar into something worthless,” he concluded.