Elon Musk agrees that inflation is caused by ‘too much government spending’ — how the billionaire protects his wealth

“Inflation is made in Washington because only Washington can create money, and any other attribution to other groups of inflation is wrong,” Friedman once famously stated (2).

“Consumers don’t produce it. Producers don’t produce it. The trade unions don’t produce it. Foreign sheiks don’t produce it. Oil imports don’t produce it. What produces it is too much government spending and too much government creation of money and nothing else.”

Although Friedman (who died in 2006) made these remarks decades ago, they continue to strike a chord. Back in October 2024, Sen. Rand Paul posted a clip of this speech, which garnered more than 50 million views on X.

The post also caught the eye of Tesla CEO Elon Musk, who reposted it, along with a “100%” emoji to signal his full agreement with Friedman’s message.

Hedging against inflation

High prices have been throttling Americans’ budgets for years. Though inflation was down to 2.4% in January 2026, the country is still facing an affordability crisis.

Since 2020, costs have soared — the price of groceries is up 30%, electricity has risen 41% and car repairs have skyrocketed 63%. And while average weekly wages have risen 31% over the last six years, inflation has erased most of those gains (3).

Americans are also concerned about the effects of tariffs on their wallets. Though the One Big Beautiful Bill Act is poised to boost tax refunds this year, the Tax Foundation estimates that for middle-income households, tariffs will erase 70% to 95% of those gains. For lower-income tax filers, the situation is even worse (4).

The good news? Musk has already shared some strategies for navigating these kinds of economic pressures.

In March 2022, just before U.S. inflation reached a decades-high peak, Musk advised: “It is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high (5).”

Let’s take a closer look at these assets.

Real estate

Real estate is a well-known hedge against inflation. As the cost of raw materials and labor rises, new properties become more expensive to build, which then drives up the price of existing real estate.

However, well-chosen properties provide more than just price appreciation. They also come with a steady stream of rental income, which also typically goes up when prices do.

Of course, properties don’t come cheap these days, especially when you factor in today’s still-high mortgage rates — over 6% for 30-year loans in February 2026 (6).

But you don’t need to buy a house to start investing in real estate. Crowdfunding platforms like Arrived have made it easier for average Americans to invest in rental properties without the need for a hefty down payment or the burden of property management.

Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.

To get started, simply browse through their selection of vetted properties, each picked for their potential appreciation and income generation.

Once you choose a property, you can start investing with as little as $100.

Another option is mogul, a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls.

Founded by former Goldman Sachs real estate investors, the team handpicks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.

Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.

Getting started is quick and easy. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.

Stocks

Equities offer another powerful tool for combating inflation and its residual effects — something billionaires like Musk understand well.

The nonprofit Oxfam reported that billionaire wealth jumped by over 16% in 2025 — three times faster than the past five-year average — to $18.3 trillion. That’s its highest level in history (7).

For many of those billionaires, much of their wealth is linked to the companies they founded or currently manage. When inflation drives up prices, businesses that can successfully pass these costs on to consumers through higher prices can maintain or even grow their profit margins. This, in turn, can lead to increased earnings and potentially higher stock prices.

But you don’t have to be in the billionaires club to reap some of those benefits yourself. Trading platforms like Public allow everyday investors to capitalize on the stock market by investing in fractional shares. The platform also has interactive social features — meaning you can follow, share ideas and learn from other investors.

And for a limited time, you can even earn a 1% uncapped match when you transfer your portfolio to Public from another brokerage.

Of course, not all stocks are created equal. To make informed decisions, investors can use research tools like Moby to access expert analysis and market insights.

Moby’s team spends hundreds of hours sifting through financial news and data to provide you with stock and crypto reports delivered straight to your inbox. Their research keeps you up-to-the-minute on market shifts and can help you reduce the guesswork behind choosing stocks and ETFs.

Plus, their reports are easy to understand for beginners, so you can become a smarter investor in just five minutes.

Ultimately, everyone’s financial situation is unique, with different obligations, risk profiles and investment goals. If you’re unsure about navigating the market on your own, it might be worth working with a financial professional. That’s where Advisor.com can help.