Key Takeaways
- Elon Musk threatened to create the 'America Party' if Trump's spending bill passes.
- Musk criticized the bill for increasing government spending and undermining fiscal control.
- His stance resonates with bitcoin's appeal as an alternative to government-driven inflation.
Elon Musk has escalated his criticism of President Donald Trump’s proposed ‘Big Beautiful Bill,’ vowing on X (formerly Twitter) to form a new political party, the “America Party,” if the bill is enacted.
Musk argued that the legislation represents excessive government spending and would add significantly to the federal deficit, undermining efforts to control fiscal policy.
Musk stated:
“If this insane spending bill passes, the America Party will be formed the next day. Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE.”
Earlier, Musk pledged to campaign against politicians supporting the bill, declaring:
“They will lose their primary next year if it is the last thing I do on this Earth.”
Political fallout and bitcoin implications
Previously, Musk collaborated with the White House as head of the Department of Government Efficiency (DOGE), focusing on reducing government expenditures.
The bill in question, however, proposes nearly $5 trillion in additional spending, which Musk claims reverses his team’s progress.
He described the legislation as a “disgusting abomination” and accused it of favoring outdated industries over emerging sectors.
Trump response
Trump responded to Musk’s criticisms by defending the bill’s purported tax cuts and border security measures, while also calling Musk “crazy” and suggesting the possible cancellation of his government contracts.
While the direct implications for bitcoin were not detailed, Musk’s public stance against government overspending and his track record of advocating for innovative technologies have historically aligned with bitcoin’s appeal as a hedge against inflation and fiscal irresponsibility.
Calls for a new political direction
Musk has previously suggested the need for a centrist political alternative, polling his followers about forming a new party.
Over 80% of respondents expressed support. As Musk distances himself from both the White House and DOGE, the future of his political and financial involvement remains uncertain.
