BCGAME - Free 5BTC Daily Bonus!- Elon Musk proposes economic expansion with the support of DOGE
- US recession risk rises to 43%
- Bitcoin price reacts to geopolitical tension and plummets 2,7%
Amid rising macroeconomic tensions and the recent drop in Bitcoin's price, Elon Musk has put forward an alternative proposal to address the growing risk of a recession in the United States. With a recession projected to reach 43%, according to recent data, the billionaire suggested a path opposite to the traditional one: expanding the economy instead of cutting spending.
Through the Department of Government Efficiency (DOGE), Musk argues that the growth of the Gross Domestic Product (GDP) can overcome the impact of public debt, whose escalation is putting pressure on the yields of US Treasury bonds - currently at 4,5% over the 10-year term. According to him, productivity is the key to avoiding fiscal collapse.
“Improving productivity and expanding GDP are the only real ways to avoid national bankruptcy,” Musk said, also highlighting the importance of combating public waste with smart reforms.
I have come to the perhaps obvious conclusion that accelerating GDP growth is essential.@DOGE has and will do great work to postpone the day of bankruptcy of America, but the profligacy of government means that only radical improvements in productivity can save our country. https://t.co/UduLpr8jhA
- Elon Musk (@elonmusk) May 23, 2025
The proposal has the support of prominent figures, such as Treasury Secretary Scott Bessent. Previously a staunch defender of austerity policies, Bessent now maintains that the country needs to “grow its way out” of the current fiscal crisis, arguing that if the rate of growth exceeds that of debt, it will be possible to maintain control of public finances.
Despite its name, which refers to the cryptocurrency Dogecoin, the DOGE (Department of Government Efficiency) project focuses on structural management and economic measures. As of May, the initiative had already saved around US$170 billion in public resources — the equivalent of 17% of the initial target of US$1 trillion and 8,5% of the larger target of US$2 trillion.
Meanwhile, the cryptocurrency market also felt the impact of the macroeconomic environment. Bitcoin fell 2,7% after a warning about trade tariffs from former President Donald Trump, highlighting how political uncertainty can shake the crypto sector.
The evolution of DOGE can be followed on an official portal, which lists the areas that have already shown greater efficiency in spending.
