Tech billionaire Elon Musk has warned that the United States is “1,000%” heading toward bankruptcy because of rapidly growing national debt, unless major breakthroughs in artificial intelligence and robotics happens that may help in boosting productivity.
Speaking on the Dwarkesh Podcast, Musk stated increasing debt levels remain unsustainable, with US national debt nearing $39 trillion.
The Tesla owner stressed that interest payments alone now surpasses the country’s military budget, crossing $1 trillion on a yearly basis.
The ongoing conflict in Iran has already led to economic turmoil not only in US but globally.
A report suggested the US spent nearly $11.3 billion in the first week of the war, with the project suggesting total costs are likely to surpass $1 trillion.
Moreover, increasing military spending proposals, including a $1.5 trillion defense budget may add trillions more to national debt soon.
Separately, Musk proposed a “universal high income” system, where the government would offer regular payments to citizens to offset job losses caused by AI.
According to Musk, increased production from automation would prevent inflation despite higher money circulation.
However, critics question the feasibility of such policies, warning of inflation risks and economic imbalance.
Musk stated that an AI-powered economy could create “abundance,” transforming the future of finances and wealth.
