Elon Musk, former affiliate of President Donald Trump and the Department of Government Efficiency, credited his group’s work with saving the state coffers to the tune of $160 billion. During his last appearance in the Oval Office on a recent Friday, Musk acknowledged the formidable task of curbing federal spending as ‘a great deal of work’. Strangely, Musk sported a bruise under his eye during the visit, which he attributed to a playful scrap with his five-year-old son, X, who he had apparently jocularly asked to hit him in the face.
Despite Musk’s departure from the Department of Government Efficiency, or DOGE for short, he insisted that its presence will not dwindle from governmental operations anytime soon. He suggested that instead, DOGE’s influence will only strengthen as time goes on. Musk likened the philosophy underlying DOGE to Buddhist principles in that it was now ingrained into the modus operandi of government, essentially becoming a lifestyle.
On the same Friday, Musk tagged along one last time with President Donald Trump to address the press. His tenure at DOGE was initially expected to span over 130 days, and with Musk confirming that his stretch was over, he took the opportunity to declare that DOGE had successfully brought about $160 billion in savings. These savings were projected to take effect over the course of the fiscal years 2025-2026. Musk even dared to suggest the savings could rise to $200 billion in the future.
In fact, during his time on the campaign trail with Trump, Musk had ambitiously committed to securing a whopping $2 trillion in saving. He subsequently revised this figure to an only slightly less considerable $1 trillion. However, during his final appearance on Friday, he confidently stated his belief that a $1 trillion reduction in wastage would indeed materialize in the long-run.
Speaking to the complexities of achieving such massive cost reductions, Musk described a demanding process whereby individual line items numbering in the millions had to be meticulously examined and evaluated. This laborious, multi-layered scrutiny questioned whether each expenditure was rational or irrational, making it venture filled with challenges.
While the reactions to Musk’s departure from DOGE were wide-ranging, Democrat state leaders appeared to greet his exit with approval. Illinois’ Treasurer Michael Frerichs, in a statement, expressed his viewpoint that DOGE was never truly oriented towards fiscal prudence. Frerichs maintained that Musk continued to be an emblem of the insatiable greed that was rampant in Trump’s administration.
Furthermore, Frerichs decried Trump for appearing to prioritize the affluent elite over the everyday American who juggle with living on their monthly wages, homelessness, and joblessness. Oregon’s Treasurer, Elizabeth Steiner, also weighed in on the matter stating that Tesla, led by CEO Musk, needed his undivided attention. She reasoned that the functioning of DOGE had resulted in significant American job losses, halted critical medical research, and disrupted essential services such as Social Security that offer financial safety nets to many families and communities.
In her statement, Steiner emphasized Musk’s genuine talents in innovation and entrepreneurship, suggesting that he should focus on these areas. This sentiment was echoed this week in a letter sent by a consortium of investors to Tesla Chairperson Robyn Denholm. The letter urged the board to apply pressure on Musk to dedicate at least 40 hours per week managing the company.
The letter argued that any future compensation plan for Musk as CEO should necessitate a minimum commitment of 40 hours weekly towards the company’s management. Last month, Musk had assured investors that he would allot more time to the electric vehicle manufacturing behemoth. On Friday, he committed to being accessible to President Trump on an informal basis, ready to extend advice and support when the President needed it.
Despite Musk’s decision to step away from his formal role, Trump claimed that Musk wouldn’t entirely detach himself from the department. ‘Elon is not really leaving,’ stated Trump, suggesting that Musk would be shuttling back and forth. ‘It’s his baby, and I think he will engage in a lot of things,’ elaborated Trump, as they both confirmed that most of the DOGE team would continue their roles.
Musk conceded that DOGE’s operations weren’t devoid of difficulties. He acknowledged the resistance faced when implementing spending cuts, while also observing that there were quite a few cost-cutting measures met without any resistance. Musk remarked, ‘Evidently, sometimes, when you reduce expenses, those who are beneficiaries, legitimate or not, they do grumble.’
Surprisingly, Musk revealed that DOGE discovered millions of idle software licenses, slashing these expenditures led to virtually no objections. He also felt disheartened that DOGE was often held accountable as a scapegoat for government cuts, being blamed for issues it had no involvement with. Musk used a specific example of a friend’s intern daughter who mistakenly believed DOGE was responsible for cutting funding for legal internships with the US Senate.
‘We have nothing to do with that,’ Musk stated, expressing his frustration about the misconception. He criticized the ludicrous assumption that any cut, anywhere, was traceable back to DOGE, including nonsensical cuts they would themselves agree made no sense.