Elon Musk Explains the Benefits of Recession

Elon Musk has a lot on his plate. He operates four businesses and may add a fifth but occasionally serves as an economist

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The CEO of Tesla, TSLA +6.11 percent (ticker: TSLA), tweeted Thursday night that an extended global recession was likely, but it wasn't awful

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The CEO of Tesla, TSLA +6.11 percent (ticker: TSLA), tweeted Thursday night that an extended global recession was likely, but it wasn't awful

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Musk believes that a worldwide recession caused by increasing prices and interest rates might endure more than a year

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According to the CEO, a lengthy slump would wipe out businesses that do not create positive cash flow and use resources

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In addition to managing Tesla, he runs SpaceX, Neuralink, and The Boring Company

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He may add Twitter (TWTR), with over 95 million followers, to his portfolio of businesses

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Tesla declined to comment on Musk's opinions regarding recessions or what Tesla would do if his scenario came true

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It's not the first time Musk has expressed economic ideas in recent years

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When announcing Tesla's humanoid robot project Optimus, he spoke about the economic benefits of robotic work

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One possible advantage of the recession is improved capital reallocation. Musk is hardly the first to suggest this.

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Under three U.S. presidents Harding, Coolidge, and Hoover, Andrew Mellon, secretary of the Treasury, said something similar at the beginning of the 1930s

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