Elon Musk warns of US debt crisis as interest costs surpass military spending

United States, Thekabarnews.com—The national debt of the United States has gone over $38.5 trillion, which has raised new worries about the country’s long-term financial stability. The CEO of Tesla, Elon Musk, gave a very serious warning on The Joe Rogan Experience, which brought the issue back into the spotlight.

Musk called the current level of US federal debt ‘irrational,’ pointing out that interest payments are now higher than the entire defense budget. The United States Department of the Treasury says that the federal government spent about $1.22 trillion on interest payments in fiscal year 2025. 

In just the first month of fiscal year 2026, interest payments have already reached $355 billion, which is a worrying sign of how quickly the cost of servicing the debt is rising.

Musk said that traditional solutions like cutting government spending will not be enough to stop a debt crisis that is about to happen. He cautioned that if the current state of affairs persists, bankruptcy may become inevitable. He thinks that structural economic growth, not austerity, is the only way to move forward.

The billionaire thinks that life-changing technologies could be the answer. He said that artificial intelligence and robotics are two of the most important things that can boost productivity and economic output to levels never seen before. 

If these technologies are used correctly, they could help the US grow its tax base, increase its income, and give it a real chance to keep up with its growing responsibilities.

Musk’s warning comes at a time when interest rates are rising faster than core government spending. This has sparked a growing debate among economists and policymakers about whether growth driven by innovation can outpace debt or whether America is nearing a historic financial reckoning.