Elon Musk's downsizing efforts could lead to significant federal layoffs, impacting the economy.

The Prediction in Context

Source: apnews.com

Musk’s efforts to downsize federal agencies could result in the layoffs of tens of thousands of federal workers, whose lost income could potentially reduce their spending, affecting businesses and the economy at large. The commerce secretary’s remarks echoed Musk’s arguments made Friday on X that government spending doesn’t create value for the economy. “A more accurate measure of GDP would exclude government spending,” Musk wrote on his social media platform. “Otherwise, you can scale GDP artificially high by spending money on things that don’t make people’s lives better.”