The Trump Administration could face an unexpected situation this coming May, or at least, that’s what Elon Musk said in his interview with Bret Baier on Fox News.
The billionaire magnate who is now Donald Trump’s right-hand man has said that his work may already be finished when his contract expires in May but… what contract is he referring to? Does Musk have an internship contract with the government? Well, yes, Musk has a clause in his “special government agent” contract stating that his work must not exceed 130 business days per year (who wouldn’t want that, right?).
What does Musk do in the government?
His job is focused on the Department of Government Efficiency (DOGE), a unit created by him and the president to reduce public spending, which they consider practically unnecessary. Both believe that there are public contracts that are completely dispensable for the system and that the system needs to be renewed and save money.
Has he managed to save?
According to recent changes, which include reducing the staff of the Social Security Administration and asking beneficiaries to return payments that the system itself had sent in error, the DOGE itself estimates that $146 billion have been saved, but he still wants more, he wants to reach one trillion dollars in savings.
However, many experts including the Associated Press have reviewed these changes and the contracts DOGE has cancelled, and the numbers don’t add up. Supposedly, these contracts represent $25 billion in savings, but the outlet concluded that around 40% of the contracts would not result in any savings for the administration, and they question the real effectiveness of the measures being imposed.
At what cost are these “savings” achieved?
The supposed savings come in part from the cancellation of federal contracts, such as those of USAID, which has consequently led to drastic cuts in international humanitarian aid. Organizations have already warned that this reduction could worsen current crises and eventually force even more expensive intervention to restore the eliminated services…
Another method DOGE has used is the mass dismissal of public employees. Although these layoffs have been counted as savings, they could be nullified if courts rule in favour of the employees and order their reinstatement with back pay, which would not only eliminate the supposed benefits but increase spending by having to pay months of dismissal.
The fall of the Musk empire
While Musk plays president, Tesla has experienced a sharp drop in international market sales, so it’s not surprising that some shareholders are demanding the magnate return to lead the company. Some shareholders believe he should appoint an acting CEO to take charge of the company while he finishes his public “civil service”.
Meanwhile, his public approval rating has continued to fall, earning him a rather negative image among citizens.
Will he continue working with Trump?
We don’t really know if after the grueling 130 days of work at the head of the federal administration he’ll want to continue.
Given that his company still hasn’t recovered, and with the presentation of the first quarter of 2025 coming up this April, which could be a disaster… we don’t really know yet, and neither does he, but he hopes that by the day his extensive contract ends, he will have achieved that one trillion dollars in “savings” he promised.
Will Musk be like all those politicians who promise things and never deliver? He hasn’t even explained how he’ll reach that figure. We’ll have to have faith. Or patience.
