Musk: Cutting $2 trillion in federal spending is an idealistic goal

Source: Cailian Press

Elon Musk recently said that the proposed U.S. Department of Government Efficiency (DOGE) is likely to fail to achieve its highest goal of cutting $2 trillion in federal government spending.

On Wednesday (January 8), Musk was interviewed by political strategist Mark Penn, who served as an adviser to former U.S. President Bill Clinton, who briefly balanced the federal budget at the end of his term.

In the latest interview, Payne asked Musk, "Now that you have studied it carefully, do you still think that $2 trillion is a realistic number?"

Musk responded, "We will strive to achieve $2 trillion, which is the best result." He explained that when setting goals, we tend to set them higher, "If we try (to cut) $2 trillion, we can achieve $1 trillion."

This means that Musk's promise has been greatly downgraded. Last October, Musk stated at Trump's campaign rally that he could and would significantly cut government spending, "cut at least $2 trillion from the federal budget."

According to data from the U.S. Treasury Department, U.S. spending in fiscal 2024 is $6.75 trillion. According to Musk at the time, this is equivalent to cutting spending by nearly one-third, and many budget experts also believe that this goal is unrealistic because the government has a discretionary budget of only $1.7 trillion.

Last November, after Trump won the election, he announced on social media that Musk would co-lead the proposed Ministry of Government Efficiency with Vivek Ramaswamy after he took office as president. But it should be pointed out that this department has no official authority and is expected to only make budget cut recommendations to the White House.

Musk emphasized in the interview that this is not an early admission of failure, and he can still help Trump achieve "epic results."

"If we can reduce the budget deficit from $2 trillion to $1 trillion, unleash economic potential, achieve further growth, and allow the output of goods and services to keep up with the growth of the money supply, then there will be no inflation. So, this will be an epic result."

Payne also asked Musk whether he had set a target for the cuts. Musk did not specify the specific measures, but only responded in general, "This will be a very targeted money-saving environment."

Some experts say that in order to cut spending, Musk and Ramaswamy may make a move on Medicaid, the "medical insurance for the poor." Musk has previously warned that spending cuts may mean "suffering" for some people.