Elon Musk: Stopping Government Overspending Is Key to Ending Inflation

Elon Musk: Solving government overspending will really affect people's lives.

“The checks never bounce for the federal government. So, the federal government can always make more money. The problem is that in doing so, that's what creates inflation. It's government spending that creates inflation.

So, when you see prices go up at the grocery store, it's because the government spent more money than it brought in in taxes, increased the money supply, diluted the value of money, and made your paycheck be less valuable.

It's just very important to connect those dots because people think maybe the supermarket's taking advantage of them and they're not. You can look at the financials of the supermarkets. They have like 2% margins. So, it's got nothing to do with price gouging by the supermarkets.

It's just that the government spent too much.

But the good news is if we solve government overspending and the money supply grows at the same rate as the output of goods and services, there will be no inflation.

And the prices in the supermarket now will be the same as the prices in the supermarket in a year. That's a super big deal. That really affects people's lives. That's what we're aiming for. We're going to do everything possible to succeed in that goal.”

DOGE Update, 𝕏 Spaces, February 3, 2025