Elon Musk is once again at the centre of controversy. It seems he enjoys being in the spotlight, but this time it is not because of any comments he has made about his companies, nor statements about artificial intelligence, nor because he has proposed drastic measures that directly affect the most vulnerable populations. This time, Musk has made a claim that has left the rest of the world speechless, and while his credibility is now almost non-existent, the statement is certainly not for the most sceptical.
What happened?
Musk claimed that he found 14 “magic computers” (yes, that’s what he called them) in federal DOGE agencies, which according to him, issue payments without control and create money out of nowhere (as if they were mining money and sending payments non-stop), which is why he called them “magical”
A metaphor?
During his interview, Musk explained that these devices are not part of any accounting or financial system and do not connect with any other system (as one might assume at first). There are no records. They simply issue money, he said, as if money grew on trees. For the businessman, this magic could be used to fund wars and healthcare.
What do experts say?
Although the term “magic computers” might seem sensationalist, some economists interpret Musk’s statements as a direct critique of Modern Monetary Theory (MMT). To explain, this theory suggests that governments that issue their own currency are not subject to the same budget constraints as households or businesses, and that they can pay any debt simply by printing more money, without causing immediate inflation problems.
Other experts have accused Musk of deception, saying that with these statements he wants to undermine public trust in the Treasury Department and other federal agencies.
The political and economic background
Musk didn’t stop there. We already know that with him there’s no middle ground. Of course, he also used his interview to talk about the massive budget cuts he has carried out on behalf of the Trump administration. According to his statements, he has managed to save more than $105 billion by eliminating contracts, programs, and more than 100,000 jobs in various agencies, especially in the Department of Government Efficiency (DOGE). However, there are still no official reports confirming these figures apart from the DOGE itself, which raises suspicions among many Americans.
Indeed, these cuts have been heavily criticized by unions and social sectors who consider them, first, illegal, and second, dehumanizing. But Musk insists that it was necessary to “clean up” the system and eliminate structures he considers inefficient.
So, the magic money thing?
Of course, Musk’s comments weren’t going to go unnoticed, they never do, and they have sparked debate across all sectors of the population. Some believe the magnate is deliberately exaggerating to make people lose trust in public institutions. But what would be Musk’s goal with that?
Other (more conservative) economists agree that such practices could lead to a loss in the value of the dollar, inflation, and distrust in international markets, and in the current situation of the country, that’s the last thing it needs.
Why can’t more money just be printed?
What Musk is proposing is not exclusive to the United States. Countries like Japan or the United Kingdom have also resorted to similar measures to keep their economies afloat. What sets this situation apart is the lack of transparency that the magnate denounces and the fact that it is presented as a hidden discovery within the system.
Because while printing unlimited money might sound tempting, it is the sure path to disaster, if there is no economic growth backing the production of those bills, all we’re doing is devaluing the currency and destabilizing the economy.
Musk never leaves anyone indifferent with his speeches, but he certainly brings to the table the debate about the role of the State in the economy. Although what he really likes is stirring the hornet’s nest.