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U.S economy is headed for recession says Elon Musk

The economy is in for a big hit this quarter, alleges the tech Giant and CEO of Tesla, Elon Musk.

‘Recession’ happens when the economy goes backward instead of moving forward. The world saw a small recession period during the pandemic last year. Shortage of goods and war situations around the world are the leading cause of it.

The famous SpaceX (1) CEO and business Mogul Elon Musk said that the U.S. economy could hit a recession and can be “tough going” for the next 12 to 18 months. He said, “The honest reason for inflation is that the government printed a zillion more money than it had.”

Musk talked about recession at the All-in podcast on Monday, where he spoke about the upcoming recession and the reasons behind it. He believes the U.S. government is at fault for these upcoming crises in the USA.

Tesla CEO alleged and was quoted saying, “The honest reason for inflation is that the government printed a zillion more money than it had .. This is not like, you know, super complicated.” while talking about recession.

Lately, the tech mogul has been in the news for his “Twitter takeover” and negotiating for the same.

However, He has offered the social media giant about $44 billion which Twitter has already accepted. Although, according to the latest reports, the deal has been put on hold for now.

Goldman Sachs, The senior chairman at Lloyd Blankfein, is on the same wavelength as Musk. He says people of the U.S. should buckle up and fortify themselves for the recession, as it’s a “very, very high risk” he mentions.

According to Sachs’s economic team, U.S. gross domestic product to expand by 2.4% this year, down from 2.6%. It reduced its 2023 estimate to 1.6% from 2.2%.

In the report, it is pegged as “the necessary slowdown” to help balance wage growth and reduce inflammation. The slowdown can result in unemployment and higher prices for goods and commodities.

While ‘Goldman’ states that the inflammation will go away and will have a lesser impact in the future as the supply chains are untangling and Covid19 cases are slowing down. But the current crisis, which is happening due to Russia’s invasion of Ukraine, might result in higher fuel prices and hence, can cause an imbalance in the economy.