Elon Musk, CEO of Tesla and SpaceX, discussed the US economy on the All-In podcast, which was released on Monday.
Musk commented on whether the US economy is in a recession, saying:
We are most likely in a recession that will worsen, but these things will pass and there will be boom times again… It’ll probably be difficult going for a year, maybe 12-18 months.
He went on to say that a correction should take between 12 and 18 months. Fears of a recession have recently increased as the Federal Reserve tightens monetary policy to help cool inflation.
Musk explained that, in his opinion, recessions aren’t always bad, emphasizing that he’s been through a few of them while working for public companies. “What tends to happen is that if you have a boom that lasts too long, you get misallocation of capital — it basically starts raining money on fools,” he explained.
Noting that rising prices were caused by money printing, Tesla CEO said:
The true cause of inflation is that the government printed a trillion times more money than it had… This isn’t anything out of the ordinary.
