The post Elon Musk’s DOGE Plan To Save the U.S. Economy from Recession Amid Bitcoin Turmoil appeared first on Coinpedia Fintech News
Billionaire founder and U.S government efficiency advisor Elon Musk has proposed a strategic plan to avoid America’s economic fall into recession. With fears of a U.S. recession rising by 43% and government debt ballooning, Musk’s Department of Government Efficiency (DOGE) is choosing to bet on expansion, not reductions.
This approach may sound risky, but here’s the twist, it’s already showing some results.
Let’s find out.
Elon Musk’s Fix: Grow the Economy, Don’t Shrink It
For decades, the go-to solution during economic trouble has been to cut government spending. But now, with the U.S. debt mounting and the U.S. 10-year Treasury yield jumping to 4.5% and recession odds climbing to 43%, Musk argues that this strategy is no longer enough
Musk says improving productivity and expanding GDP are the only real ways to avoid national bankruptcy. He admits that government waste is a serious problem, but believes that strong reforms can still make a difference.
And he’s not alone. Treasury Secretary Scott Bessent, once a firm supporter of spending cuts, now says the U.S. must “grow its way out” of the debt crisis.
According to him, if the economy grows faster than the debt, it becomes possible to manage both. This change in thinking marks a huge turning point for U.S. economic policy.
DOGE’s Progress So Far
While Musk in the 2024 U.S. election campaign promised DOGE would save $2 trillion from government spending, which is one-third of the entire federal budget. As of May, it has already saved $170 billion, which is 17% of its $1 trillion goal and 8.5% of the “dream target.”
The public can track DOGE’s progress through an official site, which also highlights which sectors are becoming more efficient.
Bitcoin Drops After Trade War Warning
After Donald Trump warned about new trade tariffs on Europe, Bitcoin and other cryptocurrencies quickly dropped. Eventually, Bitcoin has become very sensitive to what’s happening in politics. As these tensions rise, crypto prices are moving fast.
Just recently, Bitcoin hit a record high above $112,000. But after the news, it dropped 2.7% and is now trading around $107,937.