Silver Hits $42/oz — 45% YTD Gains —
Jesse Rothstein, a UC Berkeley professor and former Department of Labor chief economist, predicts an imminent “deep, deep recession” driven by Musk’s federal spending cuts.
The March employment report, due April 4, is expected to show job losses exceeding any month outside of the 2008-9 financial crisis and 2020 pandemic. The impact extends beyond direct government job cuts, as universities and other institutions implement hiring freezes in response.
Rothstein warns that the damage will be compounded by reduced federal government productivity, affecting essential services from infrastructure to public safety.
While Musk acknowledges potential “temporary hardship,” the economist suggests the consequences could be more severe than anticipated, creating a downward spiral of reduced consumer spending and economic activity.
