Musk's economic engine: $338 billion in five years to reshape the "American Dream"

Original author: Larry Goldberg

Original translation by: AididiaoJP, Foresight News

Few realize that Elon Musk is not only wealthy himself, but also a significant force in job creation, tax payments, and economic revitalization. Over the past five years (2021-2025), through his companies including Tesla, SpaceX, xAI, The Boring Company, and Neuralink, Musk has poured hundreds of billions of dollars into the pockets of Americans. This isn't just abstract Wall Street figures; it's real money circulating in communities, from Texas factory floors to California engineering centers—it's everywhere. Let's analyze the concrete data to see how Musk's businesses are revitalizing the American economy.

Employment and Income

Over the past five years, Musk's company has paid out a staggering $110.7 billion in salaries—enough to provide every resident of Los Angeles with $27,000. This income supports the livelihoods of over 200,000 employees, from welders building the Cybertruck to software engineers designing rockets for Mars. Beyond senior management, Tesla's average annual salary of approximately $160,000 is enough to allow employees to settle down, pay for their children's education, and boost local businesses such as restaurants.

These earnings continue to generate a ripple effect: employees use the money to buy daily necessities, housing, and vacations, generating $1.5 to $2 in economic value for every $1, according to the economic multiplier effect.

Tax contributions

Musk's business empire makes a significant contribution to taxation. Employees alone pay $31.8 billion in personal income and payroll taxes to support education, infrastructure, and social security. This amount is equivalent to funding NASA's budget twice in full. At the corporate level, despite enjoying tax breaks related to green technology and R&D, these companies still pay $5.2 billion in corporate income taxes. Adding the approximately $9 billion in payroll taxes borne by employers, it's clear that Musk's companies are fulfilling their tax obligations, not evading them.

If every billionaire's business contributed in this way, public finances would be much more abundant.

supply chain

Musk not only focuses on his own company but also spreads his wealth across the United States through the supply chain. Tesla alone has purchased $166 billion worth of batteries, chips, and steel from American suppliers, significantly supporting manufacturing in Michigan and Nevada. SpaceX, adhering to the "Made in America" principle, contributed $7 billion in procurement, primarily sourcing rocket-grade alloys and avionics from domestic suppliers. Combined with xAI, the total procurement amount reaches $173 billion, benefiting thousands of small and medium-sized enterprises, creating numerous indirect jobs, and enhancing the resilience of the US supply chain against global risks.

In addition, xAI has invested approximately $9 billion in building data centers and plans to invest an additional $40 billion to $60 billion in the "Colossus 2" project over the next two years.

Overall impact: A $338 billion economic engine

In summary: $110.7 billion in wages + $46 billion in taxes + $182.2 billion in supplier spending = $338 billion injected into the US economy since 2021. As projects like fully autonomous robots, the Optimus humanoid robot, and the Colossus supercomputer scale up, this spending will increase dramatically in the short term, projected to exceed $300 billion annually. Considering the economic multiplier effect, this is equivalent to installing a "turbocharger" for US GDP. What is Musk's influence? He has created high-paying jobs, funded public works, and rebuilt industrial strength, proving that bold innovation ultimately benefits ordinary Americans.

Despite critics questioning the risks, the data doesn't lie: Musk's companies are genuine economic engines, turning science fiction into reality. Their impact will only expand as xAI and Neuralink develop. In an era of stagnant wage growth and industrial outflow, Elon Musk has proven that America's innovation continues to shape and fund the future.