July 6, 2022

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Joe Biden and Elon Musk in a war of words over the state of the US economy

Joe Biden and Elon Musk in a war of words over the state of the US economy

Who would you believe: the richest man in the world or the president with him? Low poll numbers?

Billionaire Elon Musk has such a “bad feeling” about the US and the economy under President Biden that he plans to lay off about 10% of workers At his electric car company Tesla, it appeared on Friday.

Biden responded to the tech mogul’s bleak outlook with irony — and then take a hit On his next mission, SpaceX.

“He’s had a lot on his trip to the moon,” Biden said of Musk during an extended weekend trip to his Delaware beach house.

Musk is back on Twitter with a link to a 2021 NASA press release about SpaceX Win a $2.89 billion contract To send the next American astronauts to the Moon in preparation for a final trip to Mars, where Musk plans to establish a human colony.

“Thank you, Mr. President!” he is added.

Biden ignored Musk’s criticism about the US economy.
AP

A war of words erupts against the backdrop of Musk’s new status as the No. 1 enemy of the Progressives, infuriated by his Planning to buy Twitter and turn it into a platform for unregulated free speech, which proponents say it will Giving conservative views On the social networking site dominated by liberals.

On April 15, Senator Elizabeth Warren (D-Mass.) sarcastically wished Musk a “Happy Tax Day,” noting that he reportedly did not pay federal income tax in 2018 — though he said He paid a record $11 billion on its earnings for the year 2021.

Representative Alexandria Ocasio-Cortez (D-New York) also accused Musk of having an “ego problem” and told Bloomberg last week that she wanted to. Get rid of the Tesla Model 3 An electric car made by union workers.

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Musk is an outspoken opponent of unions and recently tweeted that he plans to Stop voting for the Democrats “Because they have become the party of division and hatred, so I can no longer support them and I will vote Republican.”

“Now, watch the campaign of dirty tricks against me unfold,” he added.

Elon Musk
Musk said he will vote Republican in the near future.
AP

Reuters said on Friday it had obtained emails showing that Musk told Tesla executives on Thursday to “pause all hiring worldwide.”

In a follow-up email to employees, Musk said the company will cut the number of its paid employees by 10% because it is “overstaffed in many areas” but that “hourly employees will go up,” according to Reuters.

“Note, this does not apply to anyone who actually builds cars, batteries, or installs solar energy,” Musk reportedly said.

Tesla and its subsidiaries employed nearly 100,000 people last year, according to a Securities and Exchange Commission filing that did not detail the number of wage earners and hourly workers.

Musk’s emails followed repeated warnings from him that the United States was in danger of recession.

Elon Musk has a uniquely informed view of the global economy. “We believe a message from him would be highly credible,” Morgan Stanley analyst Adam Jonas said in a report.

Tesla
Musk announced Friday that he plans to lay off about 10% of Tesla’s employees.
Reuters

While demand for Tesla and other electric vehicles remained strong, “Austerity measures are always better in good times than in bad times,” said analyst Frank Schop of Germany’s Nord LP Bank.

“I see the statements as a pre-warning and a precautionary measure,” Schop added.

Other senior executives also warned of the possibility of a US recession amid inflation that rose last month to 8.5%, its highest level in more than 40 years.

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“This hurricane is on the road coming our way,” JPMorgan Chase Chairman and CEO Jamie Dimon Wed said.

Biden – who had a dismal approval rating of 40% in a Rasmussen Reports poll on Friday – compares Musk’s corporate cuts with Ford’s announcement Thursday that it plans to add 6,200 factory jobs in Michigan, Missouri and Ohio to the Increasing production of electric cars.

“While Elon Musk is talking about it, Ford is significantly increasing its investment,” he said.

Biden noted that the new hires will be “union employees, I might add.”

The president also promoted the jobs report for the month of May Issued by the Ministry of Labor On Friday, he said the United States had made “the strongest recovery in recent history.”

He claimed that “the labor market is the strongest since the immediate post-World War II period.”

Monthly statistics showed that the country’s employers continued their hiring streak adding 390,000 jobs, keeping the unemployment rate at 3.6%, above the lowest level in half a century.

But while job growth held steady, the May number posted its lowest monthly gain in a year and stock market indices fell on expectations that the Federal Reserve will continue to raise interest rates in a bid to ease inflation.

The Fed’s moves have already caused mortgage rates to rise, lower home sales, and increase the cost of borrowing for companies looking to invest in new buildings and equipment in the wake of the COVID-19 pandemic.

Biden has been pressed on the subject of inflation, a major factor in his pathetic poll numbers.

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“There is no denying that prices, especially in relation to petrol and food, are a real problem,” he said.

I understand that families who are struggling may not care because of the high prices. They just want to bring them down.”

With the November midterm elections approaching, high inflation is causing more voters to favor Republican policies to cut government spending and increase oil and gas production, said Patrick Ruffini, partner at Echelon Insights.

Ruffini said voters also want to see “political leadership”.

“For a long time, the Biden administration didn’t seem to acknowledge the problem,” he said.

with wire