The clear indicators of economic struggle are here and have been a factor for quite some time. Within the past couple of years, Americans have lost their businesses, drained their savings accounts, and otherwise been forced to make some tough choices.
With Joe Biden holding the presidency, inflation worsened the problems that people were already facing on the heels of COVID shutdowns and other restrictions.
The Biden administration continues to insist the economy is doing well, even in spite of all evidence to the country. Low consumer confidence levels are not positive economic indicators; neither is the Federal Reserve choosing to raise interest rates.
Now, another sign of economic doom is here; this time, it comes in the form of a warning from Tesla CEO Elon Musk.
Musk on the Fate of the US Economy
On Twitter, Elon Musk was asked about whether or not he believes the United States will soon be looking at a recession.
To this end, the Tesla CEO said he does predict a recession and views this as a “good thing.” Musk followed this up by stating “some bankruptcies” actually should occur.
Later, he expressed that people staying at home during COVID restrictions set a precedent of people discounting hard work. Finally, the Tesla CEO wrapped up his assessment by forecasting that a “rude awakening” is on its way.
Musk’s prediction about a recession is in line with what many economists believe will take place as well. In fact, multiple economists have said the Federal Reserve’s decision to increase the rates Americans pay in interest only furthers the likelihood of a recession.
What to Know About a Likely Recession
Thus far, projections from the nation’s economists show that a US recession is likely to strike by the middle of 2023. If these projections pan out, this recession will occur on Biden’s watch and as he’s gearing up for his re-election campaign.
Should a recession take place, many Americans will find themselves in even tighter spots. The White House will look even more ridiculous for having insisted that the economy was doing well as it fast tracked to a slump.
A 2023 recession would also give Republicans even more ammunition against Biden going into the 2024 presidential election season. After all, Biden campaigned on “building back better,” yet since he’s gotten into office, the economy has been gradually unraveling.