Athira Sethu
Kochi, 28 October 2024
Eminent entrepreneur, Elon Musk has said that he could cut the US federal budget by at least $2 trillion if Donald Trump wins the elections.
Speaking at a Trump rally in New York’s Madison Square Garden, Musk criticized government spending and promised to lighten the financial load for citizens. Trump has announced his intention to appoint Musk to lead a new initiative called the “Department of Government Efficiency,” or DOGE, named after a popular cryptocurrency.
At the rally, Musk said that “Your money is being wasted”. His mission revolved around his aim of cutting through the government’s interference with people’s finances so they could actually help citizens retain more dollars in their purse.
This is a big claim by Musk since this would amount to almost one-third of the federal government’s spending. According to the Treasury Department, the federal budget for the fiscal year 2024 stands at $6.75 trillion.
When Howard Lutnick from Cantor Fitzgerald asked him how much would be cut under President Joe Biden or Vice President Kamala Harris, Musk answered, “Well, I think we can do at least $2 trillion, yeah.”.
Trump has been talking about the necessity to reduce the federal debt but hasn’t mentioned what he would eliminate. He’s promised tax cuts to a range of voter groups, a plan that economists say would swell the national deficit.
Musk also became a significant political donor, contributing, at least, $132 million to Trump and other potential Republican candidates for the election in 2024. This magnitude of contribution places him as one of the top donors in this presidential election. His contributions would represent an effort to gain even more political power, while he stated discomfort with the government regulations on his business operations.
Besides the money, Musk has been actively involved in the campaign by attending rallies with Trump and even conducting independent rallies.
Critics argue there is a conflict of interest because his companies, among them Tesla and SpaceX, have been beneficiaries of federal contracts and spending in forms such as electric vehicle tax credits and investments in infrastructure that have helped his business thrive.
As Musk sets foot into this political donor and advisor role, his plans to reform the federal budget could shape government spending and the economy going forward in huge ways, especially in case he is successful in winning the presidency.
