"Elon Musk's Political Economy: From Trump Ally to Deficit Hawk"

Musk's political stance seems to be undergoing a subtle shift.

Just after he announced the formation of the "American Party," a user on X directly asked:

"What made you go from being a strong supporter of Trump (DJT) to now criticizing him?"

Musk's response was brief yet powerful:

"The deficit will increase from $2 trillion during Biden's presidency to $2.5 trillion under Trump. This will bankrupt the country."

1. Musk vs Trump: Once Allies, Now Divided

2016-2020: Musk was once Trump's "technology advisor," with SpaceX and Tesla benefiting from policies.

2024 Election: Initially, Musk continued to publicly support Trump, even joking, "If Trump is elected, I’d be willing to be an advisor."

Turning Point: Recent revelations about Trump's fiscal policy—$2.5 trillion deficit, far exceeding Biden's $2 trillion.

Musk's Concerns:

U.S. national debt has exceeded $36 trillion, with interest payments accounting for 3.5% of GDP.

If the deficit continues to spiral out of control, the dollar's credibility may collapse, directly affecting global financing for companies like Tesla and SpaceX.

2. Why Does the Deficit Make Musk 'Jump Ship'?

Musk's core interests are directly at odds with the fiscal deficit:

✅ Tesla: Relies on global capital; a devalued dollar will increase overseas financing costs.

✅ SpaceX: NASA contracts are settled in dollars; fiscal tightening may cut space budgets.

✅ X (Twitter): If an economic crisis erupts, advertising revenue will plummet.

"Musk is not a politician; he is a capitalist—when policies threaten business, he will definitely retaliate."

3. The True Objective of the 'American Party': Fiscal Reform?

Musk's new political party has the slogan "Technology, Freedom, Fiscal Responsibility," with key tenets including:

Reducing the deficit: Optimizing government spending through AI to cut waste.

Crypto-friendly: Promoting Bitcoin as a "fiscal safe-haven asset."

Reducing intervention: Opposing Trump's trade protectionism (like tariffs on Chinese electric vehicles).

Potential Impact:

Diverting Trump's "tech billionaire" voter base.

If it secures over 10% of the vote, it could become a key kingmaker in 2028.