Tesla Founder & billionaire Elon Musk on Wednesday shared some concerning numbers for Americans hinting that the US is heading to bankruptcy. As soon as Elon Musk shared US bankruptcy numbers, many started to come in support of the newly formed Department of Government Efficiency (DOGE). For the unversed, Elon Musk will be heading DOGE after Donald Trump starts his second stint as the President of the US.
Sharing a DOGE post, Elon Musk wrote, "America is currently headed for bankruptcy super fast"
More about US Bankruptcy
The Department of Government Efficiency shared a post on X that reads, "In FY2023, the U.S. Government spent $6.16. trillion while only bringing in $4.47 trillion. The last budget surplus was in 2001. This trend must be reversed, and we must balance the budget."
DOGE post highlights the Federal Budget of US for the FY23. It highlights that the total revenue of the US is $4.47 trillion while total spending was $6.16 trillion. Under spending, the US spent most on Social Security, National Defense and Veterans, Medicare, Assistance to individuals, Net interest on the debt, Transfers to states, and other spending.
On the other hand, the US generated revenue from individual income taxes, payroll taxes, corporate income taxes, custom duties, sale and excise tax, and others.
When did the US go bankrupt last?
As per Bullionstar Singapore, the United States has defaulted on its obligations before. It happened in 1971 when then US President, Richard Nixon, closed the gold convertibility window and severed the link of the US dollar to gold. This act as described in Ron Paul’s book, The Case For Gold, was tantamount to ‘declaring international bankruptcy’. Gemini AI suggests that the United States has not gone bankrupt, but it has come close to defaulting on its debt in the past.