FX.co ★ Elon Musk welcomes upcoming recession

Every cloud has a silver lining, and Elon Musk is ready to prove this saying. The billionaire claims that the current economic headwinds the US is facing are “actually a good thing.” The SpaceX and Tesla CEO is sure that the US economy will only benefit from the existing challenges in the long run. He expressed this view in response to a question from a Twitter user. The entrepreneur agreed that a recession was looming but he saw it as an opportunity for growth that usually comes after an economic downturn. “It has been raining money on fools for too long. Some bankruptcies need to happen,” Musk commented. He thinks that a recession would be good for the economy because “companies that are inherently negative cash flow (i.e. value destroyers) need to die, so that they stop consuming resources.” According to Musk, a recession in the US may last for more than a year. Besides, those who stayed at home during covid lockdowns might be tricked into thinking that they don't actually need to work hard. So, they need to face a rude awakening, Elon Musk warns. In the first quarter of 2022, US GDP contracted for the first time since the start of the pandemic-induced crisis in 2020. The US economy shrank by 1.4% compared to a year ago. The outlook for future growth remains mixed.