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JOE BIDEN VS. ELON MUSK IN WAR OF WORDS OVER STATE OF US ECONOMY NOW
Joe Biden vs. Elon Musk in war of words over state of US economy now
Who are you gonna believe: the world’s richest man or the president with
plunging poll numbers?
Billionaire Elon Musk has such a “super bad feeling” about the U.S, economy
under President Biden that he plans to lay off about 10% of the workers at his
Tesla electric car company, it emerged Friday.
Biden reacted to the tech mogul’s gloomy outlook with sarcasm — and then took a
jab at his SpaceX company’s upcoming mission.
Joe Biden vs. Elon Musk in war of words over state of US economy
“Lots of luck on his trip to the moon,” Biden said of Musk during an extended
weekend trip to his Delaware beach home.
Musk snarked back on Twitter with a link to a 2021 NASA press release about
SpaceX winning a $2.89 billion contract to send the next American astronauts to
the moon in preparation for an eventual trip to Mars, where Musk plans to
establish a human colony.
“Thanks Mr President!” he added.
The war of words erupted against the backdrop of Musk’s new status as the No. 1
enemy of progressives, who are infuriated that he plans to buy Twitter and turn
it into a platform for unregulated free speech, which proponents say would give
conservative viewpoints a footing on the liberal–dominated social media site.
On April 15, Sen. Elizabeth Warren (D-Massachusetts) sarcastically wished Musk a
“Happy Tax Day,” noting that he reportedly paid no federal income tax in 2018 —
even though he said he’d pay a record $11 billion on his 2021 earnings.
Rep. Alexandria Ocasio-Cortez (D-NY) has also accused Musk of having “an ego
problem” and last week told Bloomberg she wanted to ditch her Tesla Model 3 for
an electric vehicle made by unionized workers.
Musk is an outspoken opponent of unions who recently tweeted that he planned to
stop voting for Democrats “because they have become the party of division &
hate, so I can no longer support them and will vote Republican.”
“Now, watch their dirty tricks campaign against me unfold,” he added.
On Friday, Reuters said it obtained emails showing that Musk told Tesla
executives on Thursday to “pause all hiring worldwide.”
In a follow-up email to employees, Musk said that the company would reduce its
salaried headcount by 10% because it’s “overstaffed in many areas” but that
“hourly headcount will increase,” according to Reuters.
“Note, this does not apply to anyone actually building cars, battery packs or
installing solar,” Musk reportedly said.
Tesla and its subsidiaries employed nearly 100,000 people last year, according
to a Securities and Exchange Commission filing that didn’t break down the
numbers of salaried and hourly workers.
Musk’s emails followed repeated warnings from him that the US faced the risk of
a recession.
“Elon Musk has a uniquely informed insight into the global economy. We believe
that a message from him would carry high credibility,” Morgan Stanley analyst
Adam Jonas said in a report.
And while demand for Teslas and other electric vehicles has remained strong,
analyst Frank Schwope of the German bank NordLB said, “It is always better to
introduce austerity measures in good times than in bad times.”
“I see the statements as a forewarning and a precautionary measure,” Schwope
added.
Other leading execs have also been warning about the possibility of an American
recession amid inflation that last month surged to 8.5%, the highest it’s been
in more than 40 years.
“That hurricane is right out there down the road coming our way,” JPMorgan Chase
chairman and CEO Jamie Dimon said Wednesday.
Biden — who scored a dismal 40% approval rating in a Rasmussen Reports poll
Friday — contrasted Musk’s corporate cutbacks with Ford’s Thursday announcement
that it planned to add 6,200 factory jobs in Michigan, Missouri and Ohio to
boost production of electric vehicles.
“While Elon Musk is talking about that, Ford is increasing their investment
overwhelmingly,” he said.
Biden noted that the new hires would be “union employees, I might add.”
The president also touted the May jobs report released by the Labor Department
on Friday, saying that the U.S. had made “the most robust recovery in modern
history.”
“The job market is the strongest it’s been since just after World War II,” he
claimed.
The monthly statistics showed the nation’s employers continued their hiring
streak by adding 390,000 jobs, keeping the unemployment rate at 3.6%, just above
a half-century low.
But while job growth remained steady, May’s number marked the lowest monthly
gain in a year and stock market indexes fell on expectations that the Federal
Reserve would continue raising interest rates in a bid to ease inflation.
The Fed’s moves have already caused mortgage rates to spike, pushing down home
sales, and increased the cost of borrowing for businesses seeking to invest in
new buildings and equipment in the wake of the COVID-19 pandemic.
Biden was pressed on the subject of inflation, a key factor in his pathetic poll
numbers.
“There’s no denying prices, particularly around gasoline and food, are real
problems,” he said.
“I understand that families who are struggling probably don’t care why prices
rose. They just want to bring them down.”
Joe Biden brushes off Elon Musk’s warnings about the economy while touting May
jobs report
President Joe Biden on Friday brushed off economic warnings from Tesla CEO Elon
Musk and JPMorgan Chase CEO Jamie Dimon as he touted May’s jobs report, saying
the nation is likely to see more moderate gains as his administration struggles
to get a handle on high inflation.
The President argued the nation is entering a new phase of “stable, steady
growth” amid its recovery from the coronavirus pandemic as he touted Friday’s
jobs report that showed the US added 390,000 jobs in May and the unemployment
rate stayed at 3.6%.
Biden pointed to new investments and jobs added from Ford, Chrysler and Intel
when asked about Musk’s recent comments that he has a “super bad feeling” about
the economy and wants to cut about 10% of jobs at Tesla and Dimon’s warning that
the economy is headed for a “hurricane.”
“While Elon Musk is talking about that, Ford is increasing their investment
overwhelmingly. I think Ford is increasing investment building new electric
vehicles, 6,000 new employees — union employees, I might add — in the Midwest.
The former Chrysler corporation … they are also making similar investments in
electric vehicles. Intel is adding 20,000 new jobs making computer chips,” Biden
said.
“So, you know, lots of luck on his trip to the moon,” the President said about
the SpaceX CEO. Musk responded to that barb in a tweet, linking to a 2021 NASA
news release announcing its partnership with SpaceX for its Artemis program to
develop a commercial moon lander and saying, “Thanks Mr. President!”
As the President touted last month’s jobs report and projected confidence in the
nation’s economic trajectory, he also acknowledged many Americans “remain
anxious” about high gas and food prices.
Biden again placed blame on Russian President Vladimir Putin’s unprovoked
invasion of Ukraine, while also saying, “I understand that families who are
struggling probably don’t care why the prices are up. They just want them to go
down.”
The President assured the American people he was doing “everything I can on my
own to help working families during this stretch of higher prices,” but urged
Congress to pass proposals he has put forward to lower costs.
The tempering of expectations about economic gains from the President comes as
inflation is running at a near-four-decade high and concerns about a recession
are mounting. In order to help get inflation under control, the Federal Reserve
said it would hike its interest rates by a half-percentage point — the largest
jump in 22 years.
“We aren’t likely to see the kind of blockbuster job reports month after month
like we had over this past year, but that’s a good thing. That’s a sign of a
healthy economy,” the President argued.
Earlier this week, US Treasury Secretary Janet Yellen acknowledged she had
failed to anticipate how long high inflation would continue to affect Americans.
Yellen told CNN’s Wolf Blitzer that she was “was wrong then about the path that
inflation would take,” when asked about her comments from 2021 that inflation
posed only a “small risk.”
A number of top economic aides to the President have been taking to the airwaves
to push the message that Biden is focused on bringing down consumer prices in an
attempt to boost the President’s low approval ratings. The White House recently
launched a month-long effort to signal heavy focus on the economy less than six
months out from this fall’s midterm elections.
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