Elon Musk, the world’s richest man, said in an interesting Twitter thread Thursday that he believes a recession is coming before explaining why that is “actually a good thing.”
The thread opened with a poll asking followers who they trust less, politicians or billionaires. With more than 2.1 million responses as of this writing, politicians were running away with the title of least trusted, drawing 76.1% of the vote.
In a rambunctious play, Musk dared Rep. Alexandria Ocasio-Cortez, D-N.Y., to run the same poll on her page. The Tesla CEO even tagged AOC to ensure that she would see the challenge, but the self-avowed socialist lawmaker was apparently too busy standing on the dead bodies of elementary school children to push for gun control and promote a message that police only respond to events like a mass shooting with “more violence.”
Musk followed that with this remark, “The degree to which the unions control the Dems is insane. It’s like watching a sock puppet ‘talk’, but the hand inside the sock is way too obvious!”
The billionaire then proceeded to respond to a few questions.
After saying unrealized capital gains tax “would be a super bad idea,” and explaining why, a user asked Musk about a potential recession given the state of the economy and his affirmative reply included not only an explanation but a warning of a “rude awaking” coming for some.
“Yes, but this is actually a good thing. It has been raining money on fools for too long. Some bankruptcies need to happen,” Musk tweeted. “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!”
This would be a super bad idea, since stocks can swing wildly from one day to the next, eg Snapchat dropping 43%. Tesla is ~40% below ATH!
However, eliminating estate tax dodges like GRATs would be good, since probability of kids being effective stewards of capital is lower.
— Elon Musk (@elonmusk) May 27, 2022
Yes, but this is actually a good thing. 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!
— Elon Musk (@elonmusk) May 27, 2022
The latter remark being an apparent reference to all the stimulus money showered on Americans as a result of the pandemic, in addition to an eviction moratorium that went on seemingly forever, which gave people the option of not paying rent.
In yet another reply — it’s a remarkable feat to have the wealthiest man in the world sharing his views with average folks — Musk offered his take on how long a recession will probably last: “Based on past experience, about 12 to 18 months. Companies that are inherently negative cash flow (ie value destroyers) need to die, so that they stop consuming resources.”
How long do you think this recession will last Elon? You called it!! Just curious could this one last year(s)?? 🤔 🧐 🤨
— Đ⭕️GEARMY GENERAL (@TheTeslaBull) May 27, 2022
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Tom Tillison grew up in Maryland before moving to Central Florida as a young teen. It is in the Sunshine State that he honed both his passion for politics and his writing skills. Tillison also contributes to BizPac Review.
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