Elon Musk has warned that the US government is on the verge of going bankrupt if it doesn’t control its skyrocketing debt. The billionaire entrepreneur has taken a bold step by agreeing to co-lead a new team under President-elect Donald Trump that aims to tackle this huge problem and cut government spending.
Musk’s warning comes after a prediction from Kalshi, a financial company that lets people bet on future events. Kalshi’s market suggested there’s a 36% chance the government will reduce its annual spending by at least $250 billion. The new team called the Department of Government Efficiency (DOGE), is supposed to find ways to make significant cuts. Musk will work alongside another billionaire, Vivek Ramaswamy, to lead this effort.
The concern comes at a time when the US national debt has reached a terrifying new high—over $36 trillion. Musk has expressed his alarm at this, saying that it’s a major issue that could lead the government to collapse financially.
Recently, Musk used his massive social media following (over 200 million people) to voice his opposition to a proposed government spending bill. He urged his American followers to reach out to their representatives in Congress and demand that they not pass the bill, claiming it would make things worse.
In the end, the spending bill was defeated, but so was an alternative plan backed by Trump and Musk. This put the US government at risk of shutting down. However, a last-minute compromise was reached, and a 118-page short-term solution was passed to prevent a government shutdown.
Looking ahead, Speaker of the House Mike Johnson is confident that things will change under Trump’s leadership, with the Republicans in control of both the House and Senate. “Things are going to be very different around here,” he said, signaling that major changes are coming. Will Musk’s plan to cut spending work, or is the US heading toward even more financial trouble? Only time will tell.
