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- Elon Musk stated Wednesday that his target of reducing government spending by $2 trillion may not be achievable, and that a reduction to half this amount is more probable.
- Musk said in an interview that cutting waste in the federal government is a "target rich environment," but said cutting $2 trillion would be a "best case outcome."
- Tesla’s CEO, Vivek Ramaswamy has been placed in charge of a department which will provide recommendations to the Trump Administration on government budget reductions.
Elon Musk, CEO of Tesla (TSLA), acknowledged that it would be hard to achieve his goal of cutting government spending by $2 trillion. He said that he thought a reduction in the amount spent on half was more feasible.
Musk stated in an evening interview that his Department of Government Efficiency, or DOGE will now be working in the United States. “target rich environment” He said that if he is to find waste in federal government, his first target could be too high.
"We'lI try for $2 trillion," Musk said. "I think that's like the best case 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 shot at getting 1 [trillion]. And if we … drop the budget deficit from 2 trillion to 1 trillion and kind of free up the economy to have additional growth such that the output of goods and services keeps pace with the increase in the money supply, then there will be no inflation."
'A Reverse Incentive to Waste Money'
Musk said he knows people 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, calling it "a reverse incentive to waste money."
Musk, who was an outspoken and financially supportive supporter of Donald Trump’s campaign for 2024, has now been appointed as the co-head DOGE. DOGE will be making suggestions to the White House on how budget cuts can be made. The $2 trillion figure was deemed unlikely by experts, who said that lawmakers would not be willing to cut popular programs to reach that number.
Trump announced that Vivek Vivekramaswamy and Musk, both former Republican candidates, would be responsible for the advisory section. They will have to provide recommendations by July 4, 2026.
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