Elon Musk, the CEO of Tesla and SpaceX, remarked on Tuesday that the United States faces the risk of going 'bankrupt' unless there are substantial reductions in federal spending.

Musk made his remarks during an event at the White House, where he was accompanied by President Donald Trump, who has recently launched a series of executive orders aimed at cutting government expenses.

Trump has appointed Musk to lead initiatives under the newly created Department of Government Efficiency (DOGE), which is dedicated to identifying ways to optimize government functions and minimize costs.

Musk’s comments come amidst ongoing conversations in Washington regarding the national debt, which has surpassed $31 trillion as of October 2023. Furthermore, the federal deficit for the fiscal year 2023 was anticipated to exceed $1 trillion.

The push for lowering federal spending coincides with wider discussions on fiscal policy within the legislature, as various groups express apprehensions regarding public expenditure and its long-term viability given rising inflation and economic challenges.

These events unfold in a political atmosphere characterized by divisions over fiscal responsibility and the distribution of government funds.