Musk‘sEffort to ‘Slim Down’ US Government Begins in Earnest
Tesla CEO Elon Musk appears via video at the Future Investment Initiative (FII) event held at the King Abdulaziz International Conference Center (KAIC) in Riyadh, Saudi Arabia on October 29 (local time). Yonhap News
Tesla CEO Elon Musk has already started working to scale back federal spending as co-head of the Department of Government Efficiency (DOGE), which is set to be established under the incoming administration.
Meeting with Lawmakers
On November 5, Musk went to Capitol Hill alongside Vivek Ramaswamy, the former Republican presidential candidate also co-leading the DOGE, to hash out plans with Republican lawmakers who regained their majority positions in Congress following this year’s election. The meeting signaled a direct push to prioritize trimming government spending.
Images circulated online showing Musk, son in tow, entering a meeting with lawmakers.
并且
The proceedings for DOGE came as Muskand Ramaswamy spoke with Republican senators and representatives about minimizing government spending and reducing regulations, according to The Wall Street Journal.
Eliminating Tax Credits: Musk’s Stance
After meeting with Senator John Thune, who will lead the Senate next year, Musk declared, “I think we should eliminate all deductions,” when asked about the electric vehicle tax credit. His comments, relayed by Politico shaded a larger, underlying message; he wants to eradicate government subsidies.
Musk’s statement implies pulling the plug on subsidies of up to $7,500 (approximately 10 million won) offered per electric vehicle sold, currently supported by the Inflation Reduction Act (IRA).
Musk has been publicly skeptical of government incentives. In June 2023 he publicly declared on X (formerly Twitter), “Get rid of subsidies,” adding, “This can only help Tesla.”
A few weeks later, during a publicconference call following Tesla’s Q2 earnings release, he elaborated, predicting that eliminating subsidies would be “fatal to competitors, and Tesla I think mildly hurt. But, we’ll actually quite possibly be equal in the middle somewhere… it’s long-term helpful.”
This belief aligns with President-elect Trump’s campaign promise to scrutinize and potentially eliminate numerous government subsidies and loans enacted by the outgoing Bidenizio
administration.
Ramaswamy’s Short-Term Actions
“We’re going to look at these tours with a fine-toothed comb. Last Day: Biden wanted to get in as Biden’s term he approved lots of these as he left.
Ramaswamy’s unsolicited reviews remarkably echo some of Musk’s public critiques. Earlier this year, Ramaswamy slammed the hardening by Biden, stating it represented a potential “fiduciary breach,”
What specific “non-defense discretionary programs” are Musk and Ramaswamy targeting for spending cuts?
## Interview: Musk’s Quest to Slim Down the Government
**Host:** Joining us today is Dr. Jennifer Lewis, an expert on economic policy and government spending. Dr. Lewis, thanks for being here. Elon Musk has wasted no time getting to work on reducing government spending. Can you tell us more about his efforts?
**Dr. Lewis:** Absolutely. Elon Musk and Vivek Ramaswamy, the co-heads of the newly established Department of Government Efficiency, or DOGE, seem determined to make good on their campaign promises to curtail federal spending.
**Host:** We saw images of Musk meeting with Republican lawmakers on Capitol Hill. What does this signify?
**Dr. Lewis:** That meeting was significant because it demonstrated a clear intention to collaborate with Republicans, who control Congress. It shows a willingness to work within the existing political landscape to achieve their goals.[[1](https://www.npr.org/2024/12/04/nx-s1-5205354/musk-ramaswamy-doge-congress)]
**Host:** So where do they plan to cut spending?
**Dr. Lewis:** While specific details are still limited, we know they aim to target what they call “non-defense discretionary programs.” This means looking at areas like the Consumer Financial Protection Bureau, which receives only a fraction of the overall budget. However, their focus on these areas has raised concerns among some who see them as crucial for consumer protection and economic stability.
**Host:** This is a daring move by Musk. What do you think are some of the potential challenges he’ll face?
**Dr. Lewis:** Musk will face significant resistance, both within Congress and from the public. Many will argue that cuts to these programs will hurt vulnerable populations and jeopardize essential services. It’s going to be a delicate balancing act.
**Host:**
Dr. Lewis, thank you for your insights into this developing situation. It will be fascinating to witness how Musk and Ramaswamy’s ambitious plans for the DOGE unfold.
