American tech giant Elon Musk, has pointed out that inflation is caused by the Federal Government spending more money than it earns.
According to him, to cover this gap, the government hence prints more money to cover this gap.
Inflation has been affecting many countries around the world. Some are struggling with hyperinflation due to economic instability and excessive money printing.
In Nigeria, inflation has been particularly challenging. The country has faced high inflation rates for several years, largely due to economic policies, and fluctuating oil prices.
The recent removal of fuel subsidies and the depreciation of the naira have further exacerbated the situation, leading to higher transportation and food costs making it harder for Nigerians to afford necessities.
Taking to X, Elon Musk commented that “Inflation is caused by the Federal Government spending more than it earns, because they just print more money to make up the difference.”
He added that “to solve inflation, reduce wasteful government spending. Your tax dollars should be spent well, not poorly.”
