Elon’s 3-Step Plan to Save U.S. from Recession & Boost GDP

As the US economy faces headwinds from trade wars and rising interest rates, Elon Musk’s Department of Government Efficiency (DOGE) has launched a bold new plan to prevent a recession. The centerpiece: grow GDP faster than debt.

US 10-Year Treasury yields are at 4.5% and recession odds are 43% (Kalshi data). America’s fiscal sustainability is a growing concern. Elon Musk, a close friend of President Trump, thinks the only solution is rapid growth – not austerity.

“DOGE will do great work to postpone the day of bankruptcy of America,” Musk said, “but the profligacy of government means only radical improvements in productivity can save our country.”

This is a shift from previous deficit reduction strategies to a growth model. Instead of cutting federal spending, Musk proposes increasing public investment to stimulate innovation, infrastructure and industrial productivity.

Trade Tensions Add to Recession Risk

The economic landscape is further complicated by global trade tensions. On Friday, President Trump threatened the EU with a 50% tariff – and Bitcoin and crypto markets tanked. A US-India trade deal could be announced in a week – and that’s more uncertainty.

Market volatility is reflecting investor anxiety:

• Bitcoin fell 2.6% to $108,237 after hitting $111,000

• US Treasury yields hit recent quarter highs

• Risk-off sentiment is prevailing as trade policies are unpredictable

But Tesla is still bullish on Bitcoin – holding $1.25 billion in the cryptocurrency. Musk’s tech-driven assets reflect his overall growth-based solutions to national debt.

Washington’s Fiscal Philosophy Shifts

Treasury Secretary Scott Bessent is on the same page as Musk – moving from a spending-cut agenda to a growth-led recovery. In a Fox News interview, Bessent said: “We can grow the economy and control the debt. What’s important is the economy grows faster than the debt.”

This is becoming the new consensus among economic leaders. Austan Goolsbee, President of the Federal Reserve Bank of Chicago, thinks the Fed may start cutting rates in 10-16 months – and that’s support for growth initiatives.Then we’re in business.