‘100%’: Elon Musk shares famed Milton Friedman speech saying ‘inflation is made in Washington’ by ‘too much government spending’ — nothing else. What the billionaire likes for protection

However, if the late Nobel Prize-winning economist Milton Friedman, renowned for his work on monetary policy and free-market principles, was still alive, he’d certainly have a more straightforward explanation for the phenomenon: “Inflation is made in Washington because only Washington can create money, and any other attribution to other groups of inflation is wrong,” Friedman famously stated.

“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 seem to be striking a chord once again today. Sen. Rand Paul recently posted a clip of this speech on X, which has garnered more than 51 million views since being shared in early October.

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 now. The good news? Musk has already shared some strategies for navigating these inflationary 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.”

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.

Over the last five years, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index has surged by more than 50%.

Of course, that also means properties don’t come cheap these days — especially when you factor in today’s still-high mortgage rates.

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.

With Arrived, you can invest in shares of rental homes without worrying about mowing lawns, fixing leaky faucets, or handling difficult tenants. The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving rental income deposits from your investment.

Another option is Fundrise, a pioneer in online real estate crowdfunding. Since its launch in 2012, Fundrise has democratized real estate investing, allowing people to start with as little as $10. The platform now manages $2.87 billion of equity on behalf of more than 385,000 individual investors.

When you invest in a Fundrise project, you can view a list of its holdings, including details about each property. The portfolio spans across single-family rental homes, multifamily units and industrial properties nationwide.

If you have specific regions in mind for your investments, there are tailored opportunities available.

Cityfunds, for instance, is an online investment platform that allows investors to own a pieces a top U.S. cities without needing to purchase property directly. With as little as $500, you can invest in multiple owner-occupied properties, across fast-growing cities like Austin, Dallas and Miami giving you diversified access to booming real estate markets.

Stocks

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

In January, the non-profit Oxfam reported that the world’s billionaires have become $3.3 trillion wealthier than they were in 2020, with their wealth increasing at a rate three times faster than that of inflation.