Nandini Roy Choudhury, writer
Brief news
- Elon Musk revised his budget-cutting goal for the Department of Government Efficiency (DOGE), stating a $2 trillion reduction is unlikely, with a more realistic target of $1 trillion.
- Experts criticized the initial $2 trillion figure as unrealistic, noting the entire discretionary budget is only $1.7 trillion.
- Musk acknowledged potential hardships from proposed cuts, emphasizing the need for significant reductions in mandatory programs like Medicaid to achieve savings.
Detailed news
Backtracking on a goal he had established earlier as co-head of a new advisory body known as the Department of Government Efficiency, or DOGE, Elon Musk, a tech entrepreneur, stated on Wednesday that his budget-cutting effort on behalf of President-elect Donald Trump would most likely not find savings of $2 trillion.
Musk stated in an interview with political consultant Mark Penn that the number of $2 trillion was a “best-case scenario” and that he believed there was only a “good shot” at reducing that amount by half. The conversation was televised on X.
When compared to his original perspective, Musk’s revised projection is a considerable drop. Musk made this statement on October 27 during a rally for Trump that was held at Madison Square Garden in New York City. He stated that he would be able to reduce the government budget by “at least $2 trillion.”
The entire discretionary budget was barely $1.7 trillion, according to budget experts, who promptly disregarded that amount as impossible and stated it was not worth considering. In spite of the fact that Musk had not released the number until Wednesday, it has been extensively referenced in several sources concerning the ambitions of DOGE.
Musk, together with Vivek Ramaswamy, a previous candidate for the Republican presidential nomination, is co-leading the push to reduce the budget for DOGE dollars, which Trump named in response to a meme that circulated on the internet. Despite the fact that the advisory body does not possess any official jurisdiction, it is anticipated that it will provide recommendations to the White House following Trump’s inauguration for a second term.
An instant response was not received from the Trump transition team in response to a request for comment regarding Musk’s revised estimate.
According to the opinions of various experts, in order to accomplish major cost reductions, Musk and Ramaswamy would have to suggest reducing required programs like Medicaid, which is a health care program for the economically disadvantaged. Musk has issued a warning that the changes could result in “hardship” for some individuals.
Penn, a former assistant to President Bill Clinton, made the observation that Clinton was able to achieve a balanced budget toward the conclusion of his time in the White House. Penn then inquired about Musk’s ambitions.
The question that he posed was, “Now that you are looking at it more closely, do you believe that the $2 trillion is a number that is realistic?”
“I believe that we will attempt to reach $2 trillion. It is my opinion that this is the most favorable outcome,” Musk stated. “However, I do believe that it is necessary to carry a certain amount of excess. According to him, “I believe that if we try for $2 trillion, we have a good shot at getting 1,” which is a reference to budget cutbacks amounting to $1 trillion every year.
Musk, however, did not concede that he had suffered an early defeat and stated that he might still assist Trump in achieving “an epic outcome.”
“If we are able to reduce the budget deficit from two trillion dollars to one trillion dollars and free up the economy to experience additional growth, in such a way that the production of goods and services is able to keep pace with the increase in the money supply, then there will be no inflation.” In light of this, I believe that would be an incredible conclusion,” he stated.
Additionally, Penn inquired as to whether Musk had “identified some cuts that you’re really looking at, that you think will be successful.” In general, Musk stated that it is a “very target-rich environment for saving money,” although he did not include any specific cuts in his statement.
Source : CNBC news
