Joe Biden vs. Elon Musk in war of words over state of US economy now

Who are you gonna believe Links to an external site.: the world’s richest man or the president with plunging poll numbers?

Billionaire Elon Musk Links to an external site. has such a “super bad feeling” Links to an external site. about the U.S, economy Links to an external site. under President Biden Links to an external site. that he plans to lay off about 10% Links to an external site. of the workers Links to an external site. at his Tesla electric car company Links to an external site., it emerged Friday Links to an external site..

Biden reacted Links to an external site. to the tech mogul’s gloomy outlook Links to an external site. with sarcasm — and then took a jab Links to an external site. at his SpaceX company’s Links to an external site. upcoming mission.

Joe Biden vs. Elon Musk in war of words over state of US economy

“Lots of luck Links to an external site. on his trip to the moon Links to an external site.,” Biden said of Musk during Links to an external site. an extended weekend trip Links to an external site. to his Delaware beach home Links to an external site..

“Thanks Mr President!” Links to an external site. he added.

On April 15 Links to an external site., Sen. Elizabeth Warren Links to an external site. (D-Massachusetts) sarcastically wished Musk Links to an external site. a “Happy Tax Day,” Links to an external site. noting that he reportedly paid Links to an external site. no federal income tax in 2018 Links to an external site. — even though Links to an external site. he said he’d pay a record $11 billion Links to an external site. on his 2021 earnings Links to an external site..

Rep. Alexandria Ocasio-Cortez (D-NY) Links to an external site. has also accused Musk of having Links to an external site. “an ego problem Links to an external site.” and last week told Bloomberg Links to an external site. she wanted to ditch her Tesla Model 3 Links to an external site. for an electric vehicle Links to an external site. made by unionized workers Links to an external site..

Musk is an outspoken opponent Links to an external site. of unions who recently tweeted Links to an external site. that he planned Links to an external site. to stop voting for Democrats Links to an external site. “because they have become the party Links to an external site. of division & hate Links to an external site., so I can no longer support Links to an external site. them and will vote Republican Links to an external site..”

“Now, watch their dirty tricks campaign Links to an external site. against me unfold Links to an external site.,” he added.

On Friday Links to an external site., Reuters said it obtained emails showing Links to an external site. that Musk told Tesla executives Links to an external site. on Thursday Links to an external site. to “pause all hiring worldwide Links to an external site..”

In a follow-up email Links to an external site. to employees, Musk said that the company Links to an external site. would reduce its salaried headcount Links to an external site. by 10% because Links to an external site. it’s “overstaffed in many areas” Links to an external site. but that “hourly headcount Links to an external site. will increase,” according to Reuters Links to an external site..

“Note, this does not apply Links to an external site. to anyone actually building cars Links to an external site., battery packs Links to an external site. or installing solar Links to an external site.,” Musk reportedly said Links to an external site..

Tesla and its subsidiaries employed Links to an external site. nearly 100,000 people last year, Links to an external site. according to a Securities Links to an external site. and Exchange Commission filing Links to an external site. that didn’t break down Links to an external site. the numbers of salaried Links to an external site. and hourly workers Links to an external site..

Musk’s emails followed Links to an external site. repeated warnings from him Links to an external site. that the US faced the risk of a recession Links to an external site..

“Elon Musk has a uniquely informed Links to an external site. insight into the global economy Links to an external site.. We believe that a message from him Links to an external site. would carry high credibility, Links to an external site.” Morgan Stanley Links to an external site. analyst Adam Jonas said in a report Links to an external site..

And while demand for Teslas Links to an external site. and other electric vehicles Links to an external site. has remained strong Links to an external site., analyst Frank Schwope Links to an external site. of the German bank NordLB said Links to an external site., “It is always better Links to an external site. to introduce austerity measures Links to an external site. in good times than in bad times Links to an external site..”

“I see the statements Links to an external site. as a forewarning Links to an external site. and a precautionary measure Links to an external site.,” Schwope added Links to an external site..

Other leading execs Links to an external site. have also been warning Links to an external site. about the possibility Links to an external site. of an American recession Links to an external site. amid inflation that last month Links to an external site. surged to 8.5%, the highest it’s been Links to an external site. in more than 40 years Links to an external site..

“That hurricane is right Links to an external site. out there down Links to an external site. the road coming our way Links to an external site.,” JPMorgan Chase chairman Links to an external site. and CEO Jamie Dimon Links to an external site. said Wednesday.

“While Elon Musk Links to an external site. is talking about that Links to an external site., Ford is increasing Links to an external site. their investment overwhelmingly Links to an external site.,” he said.

Biden noted Links to an external site. that the new hires Links to an external site. would be “union employees Links to an external site., I might add.”

The president also touted Links to an external site. the May jobs report released Links to an external site. by the Labor Department Links to an external site. on Friday, saying that the U.S. Links to an external site. had made “the most robust recovery Links to an external site. in modern history Links to an external site..”

“The job market Links to an external site. is the strongest Links to an external site. it’s been since just after World War II Links to an external site.,” he claimed.

The monthly statistics showed Links to an external site. the nation’s employers continued Links to an external site. their hiring streak Links to an external site. by adding 390,000 jobs Links to an external site., keeping the unemployment rate at 3.6% Links to an external site., just above a half-century low Links to an external site..

But while job growth remained steady Links to an external site., May’s number marked Links to an external site. the lowest monthly gain Links to an external site. in a year and stock market indexes fell Links to an external site. on expectations Links to an external site. that the Federal Reserve Links to an external site. would continue raising interest Links to an external site. rates in a bid to ease inflation Links to an external site..

The Fed’s moves Links to an external site. have already caused mortgage rates Links to an external site. to spike, pushing down home sales Links to an external site., and increased the cost Links to an external site. of borrowing for businesses seeking Links to an external site. to invest in new buildings Links to an external site. and equipment in the wake Links to an external site. of the COVID-19 pandemic Links to an external site..

Biden was pressed Links to an external site. on the subject of inflation Links to an external site., a key factor in his pathetic poll numbers Links to an external site..

“There’s no denying prices Links to an external site., particularly around gasoline Links to an external site. and food, are real problems Links to an external site.,” he said.

“I understand that families Links to an external site. who are struggling probably Links to an external site. don’t care why prices rose Links to an external site.. They just want to bring them down Links to an external site..”

Joe Biden brushes off Elon Musk's warnings about the economy while touting May jobs report

The President argued the nation Links to an external site. is entering a new phase Links to an external site. of "stable, steady growth" Links to an external site. amid its recovery Links to an external site. from the coronavirus pandemic Links to an external site. as he touted Friday's jobs report Links to an external site. that showed the US added 390,000 job Links to an external site.s in May and the unemployment rate stayed at 3.6% Links to an external site..

"While Elon Musk is talking about that Links to an external site., Ford is increasing their investment overwhelmingly Links to an external site.. I think Ford is increasing investment building new electric vehicles Links to an external site., 6,000 new employees -- union employees, I might add Links to an external site. -- in the Midwest. The former Chrysler corporation Links to an external site. ... they are also making similar investments in electric vehicles Links to an external site.. Intel is adding 20,000 new jobs making computer chips Links to an external site.," Biden said.

"So, you know, lots of luck Links to an external site. on his trip to the moon," the President said about the SpaceX CEO. Musk responded to that barb in a tweet, linking to a 2021 NASA news release announcing its partnership with SpaceX for its Artemis program to develop a commercial moon lander and saying, "Thanks Mr. President!"

As the President touted last month's jobs report and projected confidence in the nation's economic trajectory, he also acknowledged many Americans "remain anxious" about high gas and food prices.

Biden again placed blame on Russian President Vladimir Putin's unprovoked invasion of Ukraine, while also saying, "I understand that families who are struggling probably don't care why the prices are up. They just want them to go down."
The President assured the American people he was doing "everything I can on my own to help working families during this stretch of higher prices," but urged Congress to pass proposals he has put forward to lower costs.

The tempering of expectations about economic gains from the President comes as inflation is running at a near-four-decade high and concerns about a recession are mounting. In order to help get inflation under control, the Federal Reserve said it would hike its interest rates by a half-percentage point -- the largest jump in 22 years.

"We aren't likely to see the kind of blockbuster job reports month after month like we had over this past year, but that's a good thing. That's a sign of a healthy economy," the President argued.

Earlier this week, US Treasury Secretary Janet Yellen acknowledged she had failed to anticipate how long high inflation would continue to affect Americans. Yellen told CNN's Wolf Blitzer that she was "was wrong then about the path that inflation would take," when asked about her comments from 2021 that inflation posed only a "small risk."

A number of top economic aides to the President have been taking to the airwaves to push the message that Biden is focused on bringing down consumer prices in an attempt to boost the President's low approval ratings. The White House recently launched a month-long effort to signal heavy focus on the economy less than six months out from this fall's midterm elections.