Telsa billionaire Elon Musk has said he has a “super bad feeling” about the economy and has ordered dramatic changes to the running of his businesses.
Yesterday, Musk sent out an email to Tesla executives telling them to “pause all hiring worldwide” as the richest man on the planet warned of a bleak global economic forecast looming in the near future as prices rise and conflict continues.
The email also said that Tesla should aim to cut its staff by around 10 percent to decrease internal costs and that all remaining staff should return to working in the office rather than remotely, warning that he would assume the worker had “resigned” if they didn’t show up.
It comes after Executive of JPMorgan Chase Jamie Dimon described the US economy as being like a “hurricane” and fears about a national recession continue to rise. But some financial experts say that inflation and economic pressure will begin to “cool off”.
“We’re talking about stagnation and a global economy which has to go through significant structural change, such as decarbonisation, deglobalisation and adjusting to older societies,” said Carsten Brzeski, global head of macroeconomic research at ING.
“But we are not talking about global recession. We expect a cooling of the global economy towards the end of the year. The US will cool off, while China and Europe are not going to rebound.
Tesla CEO Elon Musk said the electric carmaker needs to cut staff by around 10%.
He noted having a “super bad feeling” about the economy, according to an internal email seen by Reuters https://t.co/AZa8G05Awj pic.twitter.com/MDt0yqdNGj
— Bloomberg TV (@BloombergTV) June 3, 2022
Dimson went on to say that firing workers will not help resolve the problem in the long run:
“We will need skilled workers more than ever in the future. This could turn into firing and then hiring,” he added.
Others, like Fiona Cincotta, a financial markets analyst at City Index London questioned whether the US would successfully lower inflation, and added that the slow of China’s economic growth following Covid-19 lockdowns and restrictions may have a knock-on effect:
“Although the Fed thinks a soft landing is possible … there are some warning signs in the economy. We know that growth is slowing and inflation remains persistently high and we know that the Fed will need to act aggressively to bring inflation back down.
“The question is – will they be able to act as aggressively as they need to, and obviously Elon Musk doesn’t think that they’re going to be able to, without putting the economy into a deep recession. China slowdown is an added problem.”
Because of the #war, the #ChinaLockdown, the #SupplyChains crisis, and #energy prices, the USA Production Price Index PPI is still rising, which means more #inflation#XEC #eCash #eCashArmy #crypto #Bitcoin pic.twitter.com/rDN0mMeB2l
— eCash future🌐XEC (@musttamoni1984) May 26, 2022
Last week, President Biden released an article in the Wall Street Journal in which he told Americans not to panic at the record-breaking levels of inflation and that the economy would soon be moving “into the next phase”.
Journalists at the Wall Street Journal obviously weren’t taken in by the president’s 1,122-word article, which provided no real solutions to the problem, and days later released a piece entitled “Biden Has No Plan to Fight Inflation”.
“What Democrats will discover this November is you can’t talk (or write) your way out of a mess, Mr. President,” wrote Wall Street Journal’s Karl Rove.
“Ultimately a chief executive wins or loses public confidence because of his record. On inflation, yours is lousy. And your op-ed ain’t a plan either”.
This story syndicated with permission from Jo Marney, Author at Trending Politics
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