Summary
Economist Jesse Rothstein warns that Elon Musk’s drastic government job cuts and contract cancellations could trigger a severe recession.
The March employment report is expected to show massive job losses, exacerbating economic uncertainty. Hiring freezes are already hitting universities and other sectors.
Rothstein fears even the government may not yet grasp the full extent of layoffs. Musk acknowledges short-term hardship but claims long-term prosperity.
Critics argue the economic fallout and loss of public services could be devastating.
As a country, paying interest indefinitely is actually cheaper than paying the debt off, unless the interest suddenly goes sky high, which it generally does not. It’s usually less than inflation.
If you believe that firing hundreds of thousands of government employees in just one year and stopping a bunch of social programs is just a “fly that breaks the camels back”, I’ve got a bridge to sell you.