- Elon Musk denounced on Friday “special interest allocations” in financial aid measures designed to help prevent an economic decline caused by the coronavirus pandemic.
- In a storm of tweets, the billionaire said that only direct payments should be included in follow-up bills on the works on Capitol Hill.
- Thousands of Tesla workers likely benefited from a federal unemployment bonus and stimulus payments, which the research likely helped millions of Americans stay out of poverty.
- In recent months, Musk has also used his massive platform to spread misinformation about the coronavirus, which has killed 144,000 people in the United States, more than in any other country.
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As lawmakers discuss how to further help the United States economy, Elon Musk said he would like to see only direct payments be included in a new aid law.
“Another government stimulus package is not in the best interest of the imo people,” the billionaire CEO, responsible for tens of thousands of workers’ paychecks, said on Twitter on Friday.
Instead, Musk suggested that any follow-up economic effort “be just direct payments to consumers.” (Another round of direct payments is likely to occur, Trump administration officials said this week.)
His criticism comes as the United States sees increasing cases of coronavirus and record levels of unemployment. In recent months, Musk has also used his massive platform to spread misinformation about the coronavirus, which as of Friday had killed 144,000 people in the United States, more than in any other country.
Research has found that a $ 600 weekly federal unemployment bonus coupled with a direct payment of up to $ 1,200 likely helped save millions of Americans from falling below the poverty line. And a recent study found that Paycheck Protection Program loans helped more than 3 million small business employees avoid layoffs.
But the unemployment bonus will expire this week. And Goldman Sachs found that more than 80% of companies that received PPP loans are likely to run out of funds in early August, meaning the 11% unemployment rate could rise.
Airlines and other industries that obtained special grants and loans under specific legislation can also fire workers. That is probably the root of Musk’s criticism of special interests.
“These are full of gills with special interests,” Musk tweeted. He did not specify whether the criticism was about existing legislation or the options that lawmakers are weighing. President Donald Trump has proposed a payroll tax cut as part of another round of aid, though that is not likely to be included in a final bill.
“The government’s goal must be to maximize people’s happiness,” said Musk. “Giving money to each person allows them to decide what meets their needs, rather than the blunt tool of the legislation, which creates selfish special interests.”
Musk’s criticism is notable given Trump’s recent support for the executive, who sided with Musk when California forced Tesla’s largest automaker in the United States to suspend production earlier this year.
—Donald J. Trump (@realDonaldTrump) May 12, 2020
Thousands of Tesla workers who fall below the company’s average salary of about $ 58,000, disclosed in regulatory documents involving an analysis of 44,000 employees, likely benefited from the unemployment bonuses and the $ 1,200 pay. When the company opened against state orders, its human resources department told workers that they would not be forced to return but that they could lose benefits.
When production resumed, several workers became ill.
On Wednesday, Tesla reported one of its most successful financial quarters, posting a profit of $ 104 million that helped its shares continue a months-long winning streak. At the same time, Tesla announced an agreement with Travis County, Texas, and a local school district for tens of millions of dollars in tax exemptions in exchange for building a factory near Austin.
As Twitter users joined Musk’s tweets with reminders of the government benefits Tesla had used to grow his business in Nevada, New York and other states, Musk finally decided that “Twitter sucks.”
—Elon Musk 🌹 (@elonmusk) July 24, 2020
But he keeps coming back.
