Elon Musk looks on during a news conference with US President Donald Trump in the Oval Office of the White House in May. (Photo by ALLISON ROBBERT/AFP via Getty Images)

Elon Musk’s “America Party,” launched on July 5, sent shockwaves through Washington. It’s not likely to sweep the 2026 midterms, but it’s a loud signal that Silicon Valley and younger Americans are fed up with Democrats and Republicans dodging the national debt crisis. Politicians on both sides of the aisle would be wise to take notice.

Musk, the world’s richest person and once a staunch Trump ally, started this political venture after the passage of President Donald Trump’s “Big Beautiful Bill,” a tax-and-spending package signed on July 4 that the Congressional Budget Office says will add $3.4 trillion to the debt over a decade.

The America Party, even if it doesn’t upend the two-party system, is a warning for both parties to tackle the country’s runaway spending, especially as young progressives push their own fix by electing socialists like Zohran Mamdani in New York.

The national debt, now topping $37 trillion, is a problem neither major party seems eager to address. The debt-to-GDP ratio, a key measure of fiscal health, keeps rising, with projections warning it could hit 120% by 2030 if trends hold.

For younger folks, who’ll inherit this mess, it’s maddening. Millennials and Gen Z face stagnant wages, sky-high housing costs, and student loans, with Social Security and Medicare potentially going bust down the line.

Silicon Valley, home to innovators like Musk, sees unchecked spending as a drag on growth and tech progress. Musk slammed Trump’s bill as “debt slavery” on X, a sentiment that resonates with those who feel both parties are just kicking the can down the road.

The America Party’s full platform is still unclear, but Musk seems to lean toward fiscal discipline, smarter spending and pro-tech policies. A social media post by Tesla Owners Silicon Valley, reposted by Musk, floated ideas like military modernization, AI acceleration and free speech.

These appeal to younger, tech-savvy voters and Silicon Valley’s libertarian crowd. The party’s most immediate threat is splitting Republican votes in tight 2026 races.

Florida Gov. Ron DeSantis warned of this phenomenon on Monday, as many other politicians have when faced with the prospect of a third party. The question now — do voters care more about winning or making their voices heard? Traditionally, it has usually been the former, but at some point, it will end up being the latter.

Democrats can’t ignore this economic crisis either. Young leftists, a key part of their base, are already pushing a different solution: electing socialists. In New York, Zohran Mamdani’s nomination in the Democratic mayoral primary shows how progressives are rallying behind candidates who promise bold economic reforms, like wealth taxes and universal programs, to address systemic issues tied to the debt.

But Democrats’ own big-spending history, like the $1.9 trillion American Rescue Plan in 2021, leaves them open to criticism for fiscal recklessness. Their quiet response to Musk’s party risks alienating voters frustrated by the focus on social issues over economic challenges like the debt. A 2024 Gallup poll found 58% of Americans, including many young people, want a third party because the major parties “do such a poor job” representing them. Musk’s wealth and X platform clout could tap into that discontent, even if only in a few races.

Let’s be clear — the America Party’s odds of breaking through are low. Third parties rarely thrive in America’s winner-take-all system, as Ross Perot’s 1992 run proved. But its emergence, alongside the rise of socialist candidates like Mamdani, screams that Silicon Valley and younger Americans are done with the national debt being ignored.

Democrats and Republicans need to ditch the fake budget fights and get serious about bipartisan solutions — entitlement reform, simpler tax codes, spending audits — to dodge a fiscal crisis. Musk’s America Party and the socialist surge are shots across the bow, telling both parties the status quo isn’t cutting it anymore.