Elon Musk thinks a recession is coming, and the billionaire businessman believes that it is a “good thing.”
The world’s richest man made the positive case for economic misery via Twitter on Friday, arguing that, “some bankruptcies need to happen.”
Musk proffered his unconventional wisdom when asked if he still believed a recession was on the horizon. Having answered in the affirmative, the Tesla CEO and SpaceX founder took the surprising stance that recessions are actually a force for good.
“Yes [a recession is coming], but this is actually a good thing,” said Musk. “It has been raining money on fools for too long. Some bankruptcies need to happen. Also, all the COVID stay-at-home stuff has tricked people into thinking that you don’t actually need to work hard. Rude awakening inbound!”
In Musk’s mind, the layabouts who followed government mandates and stayed at home during the COVID crisis will have to work a little harder in the harsher economic climate, provided the company they work for is not one of the ones that goes bankrupt.
Musk forsees a long recession
Musk is not the only commentator who believes that a U.S. recession is in the offing. Glenn Hutchins of crypto VC firm North Island has stated that the U.S. economy will experience negative growth in 2023. Hutchin’s prediction may yet prove optimistic, as there are signs that the economy is slipping into decline as early as this year.
While there is consensus that some economic contraction is inevitable, Musk stands alone in believing that the fallout will ultimately be for the best.
Elon predicts that the upcoming period of negative growth may last between 12 to 18 months. That will allow the stiff broom of recession to sweep away all the trash “negative cash flow” companies that “need to die, so they stop consuming resources.”
Tesla was founded in 2003. Musk became its CEO in 2008. In 2019, the company posted its first annual profit after years of negative cash flows.
Musk’s companies have received billions in taxpayer support and subsidies. Having grabbed all the public money he could with both hands, billionaire Elon Musk now stands a recession-proof individual. Many of the taxpayers who assisted his rise will not find themselves similarly immune.