University of Michigan economist Justin Wolfers says critics who claim economists are “terrible forecasters” should read his co-authored textbook from 2020, which he insists foretold the very public clash between Elon Musk and President Donald Trump.
What Happened: Wolfers wrote on X that the 2020 Stevenson-Wolfers Principles of Economics textbook warns budget battles can turn “vicious … even among colleagues who normally consider themselves friends,” a sentence he says “prophesied the Musk-Trump tiff.
He attached a screenshot of the passage to argue that economists, when writing about incentives and scarcity, often spot political flashpoints before they explode.
Wolfers’ post on X follows a similar one from the co-author of the economics book he was referring to. Betsey Stevenson, former chief economist at the U.S. Labor Department, wrote Saturday that she is working on revising her chapter on “fiscal policy” in an upcoming edition of the ‘Principles of Economics‘ textbook but will keep the line about “vicious fights” erupting during budget prep.
Why It Matters: The Musk-Trump tiff Wolfers referenced in his X post escalated on June 3 when Musk blasted House Republicans’ 1,100-page spending plan as a “disgusting abomination” and warned new tariffs would trigger recession. Trump fired back a day later, accusing the Tesla (NASDAQ:TSLA) CEO of “Trump Derangement Syndrome” and suggesting their once-warm relationship was finished.
The feud rattled markets, erasing $152 billion from Tesla’s value in one session and prompting activists to warn Trump could “hurt Elon’s businesses.”
Political analysts trace Musk’s break with Trump to disputes over EV tax credits and budget deficits, with insults trading on X and Truth Social through June 6. As things stand, the spat between the two appears to have taken a pause. That said, the future of their relationship remains uncertain.
Photo Courtesy: Shutterstock AI
