Billionaire Elon Musk doesn’t have to worry about where his next meal is coming from but tens of millions of Americans do.
In fact, he said this week that inflation he says has been made worse by policies pursued by President Joe Biden and the Democrat congressional majority are turning the U.S. into Venezuela.
Speaking to “The All-In Podcast,” Musk repeated Amazon founder Jeff Bezos’ claim that the Biden administration has regularly relied on “misdirection” to “muddy the topic” of inflation, ADN American News reported.
“I mean, the obvious reason for inflation is that the government printed a zillion amount of more money than it had, obviously,” Musk said, noting that the government’s American Rescue Plan pandemic relief stimulus bill has contributed to the unprecedented levels of inflation that is being seen all across the United States and which hit a 40-year-high in April.
“So it’s like the government can’t just, you know, issue checks far in excess of revenue without there being inflation, you know, velocity of money held constant,” he argued.
“If the federal government writes checks, they never bounce. So that is effectively creation of more dollars. And if there are more dollars created, then the increase in the goods and services across the economy, then you have inflation, again, velocity of money held constant.”
“If the government could just issue massive amounts of money and deficits didn’t matter, then, well, why don’t we just make the deficit 100 times bigger? The answer is, you can’t because it will basically turn the dollar into something that is worthless,” he noted.
“Various countries have tried this experiment multiple times,” Musk noted. “Have you seen Venezuela? Like the poor, poor people of Venezuela are, you know, have been just run roughshod by their government.”
He also said once the Venezuelan government started printing money to combat rising inflation, that made prices soar even more while unemployment increased and the economy effectively collapsed.
“So obviously you can’t simply create money,” Musk said.