Economist: Good that Elon Musk raises vote on the US budget

In recent days, a brawl has flared on social media between Tesla founder Elon Musk and US President Donald Trump where insults and various threats have been thrown back and forth.

– It is about two extremely strong personalities where one has the billions, the other has power – and both want to be at the center, says Robert Bergqvist at SEB.

The origin seems to be the budget proposal presented by the White House, which Trump described as « big and beautiful ».

Elon Musk has turned against the budget increasing public spending. At the same time, parts of the electric car support that have benefited Tesla disappear.

Robert Bergqvist gives Elon Musk right when it comes to the central government debt. He thinks that American politicians, regardless of party affiliation, have long taken too easily on the budget deficit.

– Public debt just keeps pointing upwards. My picture is that there is a great lack of problem insight into the congress, and now also in the White House, about what can happen if you just continue as now, says and continues:

– There are limits to how much a state can borrow. Somewhere investors are starting to lose confidence, we already see some such signs that you are questioning whether to continue buying US government securities.

According to Robert Bergqvist it can be a snowball effect where interest rates rise and with the concern about how the deficit is to be financed.

– And then the interest rate rises further. Then you put the state financial snowball in rolling.

He therefore thinks it is « welcome » that someone dares to raise their voice.

– In this case, it’s Elon Musk. As I interpret him, he means that the public sector has become a growth engine in itself, something that created inefficiency.

– Then I can’t agree with him in the way he puts it in. He advances as a steam roller and takes no consideration, which creates uncertainty, says Robert Bergqvist.

He also thinks The fact that the trouble between Trump and Musk has highlighted how deeply integrated Elon Musk’s business empire is in politics.

– The stock in Tesla is an example of that. He has had great opportunities to get support from the Trump administration to develop his products. In addition, he has gigantic public contracts, not least through SpaceX, says Bergqvist.