Tech magnate Elon Musk protested Monday towards President Trump’s barrage of tariffs on international imports by reposting the late libertarian economist Milton Friedman’s well-known “pencil speech.”
The Tesla and SpaceX CEO didn’t add any remark to the early morning submit, which featured a video of Friedman — who died in 2006 on the age of 94 — methodically explaining how the worldwide provide chain works to supply writing implements shortly and cheaply.
“There’s not a single person in the world who could make this pencil,” Friedman started within the video. “Remarkable statement? Not at all. The wood from which it’s made, for all I know, comes from a tree that was cut down in the state of Washington. To cut down that tree, it took a saw. To make the saw, it took steel, to make the steel, it took iron ore.”
Friedman went on to recommend that the pencil’s graphite heart got here from mines in South America, whereas its rubber eraser got here from “Malaya, where the rubber tree isn’t even native. It was imported from South America by some businessmen, with the help of the British government.”
“This brass ferrule, I haven’t the slightest idea where it came from,” Friedman added. “Or the yellow paint, or the paint that made the black traces or the glue that holds it collectively.
“Literally, thousands of people cooperated to make this pencil … What brought them together and induced them to cooperate to make this pencil? There was no commissar sending out orders from some central office. It was the magic of the price system … That is why the operation of the free market is so essential.”
Monday’s submit got here after Musk lashed out towards a few of the Trump administration’s loudest advocates of tariffs, specifically Peter Navarro, senior counselor to the president for commerce and manufacturing.
“A PhD in Econ from Harvard is a bad thing, not a good thing,” Musk wrote about Navarro early Saturday. “Results in the ego/brains>>1 problem.”
At one level, Musk additionally jabbed that Navarro “ain’t built sh—.”
Navarro has since downplayed the broadsides from Musk, whereas accusing him of attempting to guard his personal monetary pursuits.
“I’ll probably see him today in the Oval — it’s no big deal,” Navarro instructed CNBC’s “Squawk Box” Monday morning. “He is not a car manufacturer, he’s a car assembler in many cases.”
Navarro additionally praised Musk’s work within the Division of Authorities Effectivity (DOGE).
“Elon, when he’s in his DOGE lane is great, but we understand what’s going on here. Elon sells cars. He’s simply protecting his own interests,” Navarro instructed Fox Information Channel’s “Sunday Morning Futures.”
During the last three weeks, Musk’s internet price has shed an estimated $46 billion, in line with the Bloomberg Billionaire’s Index.
On Sunday, Musk additionally poked enjoyable at Commerce Secretary Howard Lutnick’s protection of the tariffs on the penguin-inhabited Heard and McDonald Islands. Lutnick defined the duties had been needed to stop nations from exploiting transport loopholes.
“This is funny,” Musk remarked.
Final week, Musk instructed that the best consequence of the tariffs can be for the US and Europe to collectively decrease the commerce obstacles imposed towards each other.
Trump had introduced a 20% tariff on imports from the European Union as a part of his “Liberation Day” initiative.
“At the end of the day, I hope it’s agreed that both Europe and the United States should move ideally, in my view, to a zero-tariff situation, effectively creating a free trade zone between Europe and North America,” Musk instructed Italy’s right-leaning, co-ruling League celebration in a video tackle.
“If people wish to work in Europe or wish to work in North America, they should be allowed to do so in my view,” Musk instructed League chief Matteo Salvini, including that this “has certainly been my advice to the president.”
Whereas the South Africa-born billionaire has not criticized Trump instantly over the tariffs, he’s been vital of duties previously.
“I think you need to be careful with tariffs,” Musk instructed comic and podcaster Joe Rogan late final 12 months. “I deal a lot with supply chain issues — like, the global automotive supply chain for Tesla is incredibly complex. So when there are sudden changes in tariffs … it messes everything up.”
“You want to have tariffs be predictable,” he added. “I think companies are more than happy to increase manufacturing in America, it’s just that you can’t do it instantly.”
