The escalating terminal debt of the United States, now exceeding $34.8 trillion as of 2024 per the Congressional Budget Office, signals a looming crisis that could mark the end of its economic dominance. With annual deficits projected to hit $2.5 trillion in the next fiscal year under Trump’s “Big Beautiful Bill,” and interest payments already nearing $900 billion, the U.S. is borrowing to service debt at an unsustainable rate, consuming 20% of federal revenue just to pay interest. This burden weakens the dollar’s global reserve status, which has slipped from 71% of foreign exchange reserves in 2000 to 58% in 2024 per the IMF, as countries like China and India pivot to alternatives like the yuan. The erosion of purchasing power—85% lost since 1971 per CPI data—coupled with a $4 trillion debt ceiling hike, suggests a tipping point where creditors may lose faith, accelerating a shift to a multipolar economic order led by emerging markets, potentially ending U.S. financial hegemony within a decade.
- Massive Increase in Budget Deficit and National Debt
Musk has repeatedly called the bill a “disgusting abomination,” focusing on its projected impact on the federal deficit. The nonpartisan Congressional Budget Office (CBO) estimates the bill would add $2.4 trillion to $5 trillion to the national debt over the next decade, with some analyses suggesting a $2.5 trillion deficit increase in the next fiscal year alone. Musk’s posts on X and comments to CBS News highlight his view that this contradicts the spending cuts DOGE aimed to achieve, with a target of $1 trillion or more in savings. He argues it burdens Americans with “crushingly unsustainable debt,” a stance echoed by fiscal hawks like Senators Rand Paul and Mike Lee, who’ve aligned with him. - Elimination of Electric Vehicle (EV) Tax Credits
A key provision of the bill rolls back EV tax credits, part of the Biden-era Inflation Reduction Act, which Musk’s Tesla relied on to boost sales. Trump has suggested Musk’s criticism stems from this loss, noting Tesla’s struggles with EV sales amid global competition and backlash to Musk’s political activities. Musk has acknowledged the EV mandate cuts, stating on X that he’s fine with them if paired with broader spending reductions, but the lack of balance—leaving oil and gas subsidies untouched—frustrates him, as he sees it as “very unfair.” - Lack of Significant Spending Cuts
Musk’s tenure at DOGE focused on slashing federal spending, claiming $180 billion in savings (though unverified), far short of his $2 trillion goal. The bill’s failure to codify these cuts, instead increasing spending on defense ($350 billion) and border security, has drawn his ire. He’s criticized the “pork-filled” nature of the legislation, pointing to what he sees as wasteful allocations, and urged followers to “kill the bill,” amplifying tensions with Trump’s administration, which defends the bill as a growth driver. - Debt Ceiling Increase to $4 Trillion
The bill lifts the debt ceiling to $4 trillion, a move Musk and deficit hawks oppose as reckless. This provision, intended to avoid a government default, contrasts with DOGE’s mission to reduce debt. Musk’s X posts, like his call to “fire all politicians who betrayed the American people” in November 2026, reflect his belief that this increase undermines fiscal responsibility, a view shared by Senators Ron Johnson and Rand Paul.
Critical Perspective
The establishment narrative frames Musk’s upset as a personal grievance—Trump suggests it’s about EV credits or Musk missing his White House role—while downplaying the deficit concern as political theater. However, Musk’s focus on debt aligns with his long-standing view of it as an “existential threat,” predating his DOGE role, suggesting genuine policy disagreement. The CBO’s $2.4 trillion deficit estimate is debated, with the White House calling it biased, but independent analyses support Musk’s concern about long-term debt growth. His influence, amplified by $250 million in 2024 campaign support, gives weight to his critique, though his Tesla-centric interests (e.g., EV credits) may color his stance. The rift with Trump, now public with insults over Epstein files and contracts, adds complexity—whether this is strategic or personal remains unclear, but it’s shifted Republican dynamics.
