When Elon Musk said recession is a good thing and that 'some bankruptcies need to happen'

Tech billionaire and Tesla CEO Elon Musk once described a recession as a "good thing."

In a Twitter exchange from May 2022, Musk said that an economic downturn would serve as a "rude awakening" and that "some bankruptcies need to happen." At the time, his comments came in the context of the economic disruptions caused by the COVID-19 pandemic.

“This is actually a good thing. It has been raining money on fools for too long. Some bankruptcies need to happen,” Musk wrote in a post on X (formerly Twitter).



Fast forward to today, and concerns over a new global recession are resurfacing—this time fueled by U.S. President Donald Trump's aggressive new tariffs.

Wall Street veteran Jim Cramer, known for predicting the 1987 “Black Monday” crash, recently warned that the United States may be heading into a recession triggered by Trump's escalating trade war.

“It’s likely we’re headed for a recession because of the president’s ill-advised plans,” Cramer told CNBC, calling the tariff strategy “real trouble” for the economy.

Business leaders are echoing those concerns. JPMorgan Chase CEO Jamie Dimon recently flagged the growing inflation risks and the potential for a broader economic slowdown.

Interestingly, Elon Musk himself has now urged President Trump to reverse the tariffs. Over the weekend, during a virtual appearance at a congress organized by Italy’s right-wing League Party in Florence, Musk advocated for zero tariffs between the U.S. and Europe, according to the Washington Post.

Trump’s latest move includes a 10% baseline tariff on all imports to the U.S., along with increased duties on dozens of countries. Economists warn that the new tariffs could reignite inflation, increase the risk of recession, and drive up living costs for average American households—potentially undermining Trump's own promise to reduce the cost of living.