BAKERSFIELD, Calif. (KERO) — A growing political rift between President Donald Trump and tech mogul Elon Musk is casting doubt on the future of a multi-trillion-dollar federal spending bill, raising fresh concerns among economists about inflation, job loss, and long-term national debt.
- The rift between Trump and Musk raises doubts about the 'Big Beautiful Bill' passing in its current form.
- Local economist Richard Gearhart warns of potential inflation and recession due to political uncertainty.
- Musk criticizes the bill for its large deficit and cuts to clean energy incentives, affecting Tesla.
- California could suffer job losses in regions supporting Trump due to cuts in environmental subsidies.
A growing political rift between President Donald Trump and tech mogul Elon Musk is casting doubt on the future of a multi-trillion-dollar federal spending bill, raising fresh concerns among economists about inflation, job loss, and long-term national debt.
The bill—officially titled the “One Big Beautiful Bill Act”—proposes sweeping tax cuts and funding changes that critics say disproportionately benefit high-income earners while cutting programs such as Medicaid, SNAP and public education. It also eliminates federal clean energy subsidies that have supported job growth in rural California, including parts of East and West Kern County.
“This reduces the likelihood that the big, beautiful bill passes in any way, shape, or form in the Senate—at least not in the form it currently exists,” said Dr. Richard Gearhart, an economist at California State University, Bakersfield.
The legislation has become a flashpoint in the feud between Trump and Musk, who previously served as head of the Department of Government Efficiency under the Trump administration. Musk publicly criticized the bill last week, calling it a “disgusting abomination,” citing rushed changes to the bill’s language and a Congressional Budget Office report showing it would add nearly $2.5 trillion to the federal deficit.
“This wasn’t a calculated move,” Gearhart said of Musk’s abrupt exit from the administration’s agenda. “Musk saw rushed changes and a CBO report that showed exploding debt. That’s a red flag for someone like him.”
Locally, the proposed rollback of clean energy incentives could have a significant economic impact.
“Those programs created jobs in regions that supported Trump. Losing that would hurt,” Gearhart said.
Beyond regional implications, Gearhart warned of broader economic consequences if the bill moves forward.
“Uncertainty leads to inflation. Businesses price in risk,” he said. “Meanwhile, GDP is shrinking, and we’re likely heading into recession territory.”
The bill also increases the federal government’s interest payments on debt—potentially exceeding annual spending on Social Security, Medicare or Medicaid, Gearhart added.
“If passed as-is, we’ll be paying more in interest on the national debt than we do for Social Security, Medicare, or Medicaid,” he said.
U.S. Reps. Vince Fong and David Valadao were contacted for comment. Fong’s office confirmed he still supports the bill. Valadao’s office did not respond.
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