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Tesla CEO Elon Musk shared his ambitious goal on Wednesday to reduce federal spending by $2 trillion through the "Department of Government Efficiency" (DOGE), a new initiative he co-leads.
Speaking in an interview with political strategist Mark Penn on his platform X, Musk outlined the transformative plan, highlighting its potential to reshape the economy and tackle inflation.
“I think we’ll try for $2 trillion, I think that’s like the best-case outcome,” Musk stated. He elaborated that aiming for this substantial target could still yield significant progress even if partially achieved. “If we try for $2 trillion, we’ve got a good shot at getting $1 [trillion],” he continued.
Musk noted that reducing the budget deficit from $2 trillion to $1 trillion could free up the economy for additional growth, allowing the output of goods and services to match the increase in the money supply and potentially eradicating inflation. “That, I think, would be an epic outcome,” he remarked.
Musk has consistently advocated for extensive federal spending cuts, a position he championed throughout the 2024 campaign when he stood as one of President-elect Trump’s most vocal backers.
His proposal, however, has drawn skepticism from experts who question the feasibility of such drastic reductions.
When asked about specific areas to target, Musk described the federal government as rife with opportunities for cost-saving.
“People ask, ‘Where will you find places to save money?’ It’s like being in a room full of targets,” Musk said, underscoring what he sees as widespread inefficiencies. “You can close your eyes, and you can’t miss.”
The Department of Government Efficiency, announced by Trump in November, aims to streamline federal operations by cutting excessive regulations, eliminating wasteful expenditures, and restructuring government agencies.
Musk co-leads the initiative alongside former GOP presidential primary candidate Vivek Ramaswamy. Their collaboration signals a bold push for fiscal reforms, with Musk playing a central role in shaping the administration’s economic strategy.
Despite their seemingly close relationship, recent reports suggest friction between Musk and the president-elect. The New York Times’s Maggie Haberman revealed this week that Trump has expressed concerns about Musk’s frequent presence, reportedly grumbling that the tech mogul is “around a lot.”
Democrats have also criticized Musk’s influence, questioning the extent of his authority within the administration. Speculation has mounted about who is truly steering policy decisions, with some suggesting Musk holds significant sway.
However, Trump’s team has firmly maintained that the president-elect remains the clear leader of the GOP.
Musk’s vision for DOGE reflects his broader philosophy of innovation and efficiency, traits that have defined his leadership at Tesla and SpaceX.
Whether his ambitious $2 trillion goal is achievable remains to be seen, but the initiative has already sparked a national conversation on government spending and fiscal responsibility.
