Elon Musk has warned that the US government will effectively go bankrupt if it fails to get its growing debt under control. The billionaire is set to lead a new department, the Department of Government Efficiency (DOGE), which is designed to curb government spending under the incoming US President, Donald Trump.
Musk’s comment was in response to a report from Kalshi, a financial services company that allows users to bet on future events and estimates the probability of their occurrence. Musk welcomed the fact that the market has predicted a 36% chance of the annual government spending being cut by at least $250 billion under Trump.
Kalshi mentioned that the DOGE, which Musk will lead with his fellow billionaire Vivek Ramaswamy, will contribute to reducing government spending.
The US national debt has surpassed $36 trillion, a development that Musk has described as “alarming.”
Last week, Musk used his social media influence to weigh in on the US Congress’s debate over a stopgap bill. He urged his over 200 million followers on X, most of whom are US citizens, to contact their representatives on Capitol Hill and express their opposition to a proposed budget bill that he believes should not be passed.
The 1,500-page measure was ultimately not passed, nor was an alternative proposed by Trump and supported by Musk, which would have brought the US government to the brink of a new shutdown. A 118-page short-term compromise solution was passed, which was signed into law by US President Joe Biden on Saturday.
“President Trump will return to Washington D.C. and the White House, and we will have Republican control over the Senate and the House of Representatives” said Mike Johnson, the Speaker of the House, commenting on the outcome. “Things will look very different here. This was a necessary step to bridge the gap.