:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2188387811-b3f564be94454c1fae8df203c65cc27f.jpg "Elon Musk and other people are seen walking through the Capitol building in Washington, D.C.")
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Tesla CEO Elon Musk arrives on Capitol Hill on Dec. 5, 2024 in Washington, D.C.
Key Takeaways
- Elon Musk said Wednesday that his aim of cutting $2 trillion in government spending may be a difficult number to reach, with half that figure various likely.
- Musk said in an interview that cutting waste in the federal government is a “target rich environment,” but spoke cutting $2 trillion would be a “best case outcome.”
- The Tesla CEO and Vivek Ramaswamy have been put in assail of an advisory department that will make recommendations for government budget cuts to the new Trump administration.
Tesla (TSLA) CEO Elon Musk allowed that his target of cutting $2 trillion in government spending would likely be difficult to complete, with half that sum up looking like a more realistic option.
Musk said in an interview late Wednesday that his advisory Sphere of influence of Government Efficiency (DOGE) will be operating in a “target rich environment” when it comes to finding waste in the federal regime, but said his initial target may be high.
“We’lI try for $2 trillion,” Musk said. “I think that’s like the best instance outcome, but I do think that you kind of have to have some overage. I think we try for $2 trillion, we’ve got a good swiftly at getting 1 [trillion]. And if we … drop the budget deficit from 2 trillion to 1 trillion and kind of free up the thrift to have additional growth such that the output of goods and services keeps pace with the increase in the lolly supply, then there will be no inflation.”
‘A Reverse Incentive to Waste Money’
Musk said he knows man in government who want to cut spending, but are told to spend their entire budget so it doesn’t get cut in the next budget cycle, profession it “a reverse incentive to waste money.”
Musk was a vocal and financial supporter of Donald Trump’s 2024 campaign, and has been named the co-head of DOGE, which when one pleases make suggestions on budget cuts to the White House. Experts have said the $2 trillion number was doubtful from the start, as legislators would likely be hesitant to make the cuts to popular programs that would be compelling to hit that figure.
Musk and entrepreneur and one-time Republican presidential candidate Vivek Ramaswamy were put in charge of the advisory branch, and will have until July 4, 2026 to make recommendations, Trump has said.