Tesla CEO Elon Musk said the US economy is likely in recession. This statement is at odds with economists and available data.
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“It will probably be hard. I don’t know – a year, maybe 12-18 months, ”the billionaire predicted, speaking of problems in the American economy.
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He also advised businesses to keep an eye on spending and cash flow. Musk suggested that recessions aren’t necessarily bad, adding that he’s experienced several during his time at public companies.
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“What usually happens is that if you have a boom that lasts too long, you get a misallocation of capital — basically the money starts pouring in on fools,” he said.
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The billionaire believes that the rise in prices was “simply due to printing money.
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“The honest reason for inflation is that the government printed a million more money than it had. It’s not that, you know, super difficult,” said the entrepreneur.
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Recession fears have intensified recently as the Federal Reserve tightens monetary policy to help bring down inflation, which has reached its highest level since the early 1980s.