Elon Musk, CEO of Tesla and SpaceX, reiterated his call for substantial federal spending cuts, proposing a potential $2 trillion reduction. In a recent X interview with political strategist Mark Penn, Musk outlined his vision for achieving this goal and its potential impact on inflation.
Musk believes a $2 trillion cut represents an optimistic target, with a more realistic outcome likely to be closer to $1 trillion. He argued that such reductions, coupled with economic growth keeping pace with increased money supply, could effectively eliminate inflation.
This isn't a new stance. Musk previously called for at least $2 trillion in cuts, a proposal that generated skepticism from some experts. His latest statements come as his newly formed Department of Government Efficiency (DOGE), tasked with cutting waste and restructuring government agencies, is gaining traction under President-elect Trump.
Musk's new department, headed by Musk and Vivek Ramaswamy, has been lauded by Trump for its potential to tackle government inefficiency. Musk emphasized the abundance of potential savings within the government, likening identifying areas for reduction to finding targets in a “room full of targets”.
Despite Musk's prominent role in the DOGE initiative, the President-elect’s team maintains he remains in charge, contradicting speculation from some Democrats that Musk is wielding considerable influence. The shifting narratives surrounding Musk's influence underscore the ongoing power dynamics within the Trump administration.
