Elon Musk, the richest person in the world, has vaulted at the forefront of the presidential campaign, as an early donor and passionate speaker for the former president Donald Trump.
However, Musk has said in recent days that the candidate’s economic plans could cause financial pain, at least in the short term.
Among those proposals is the creation of a new “government efficiency commission” to be chaired by Musk. The group would scrutinize federal spending and cut wasteful programs.
Speaking on the phone at City Hall on Friday, Musk he said The spending cuts imposed by the Commission “would necessarily lead to some temporary difficulties”. Ultimately, cost-cutting would “ensure long-term prosperity,” Musk added.
“We have to cut back on spending to live within our means,” Musk said.
On another note, he agreed with Musk the message On Tuesday X, if Trump wins the election and implements some of the main issues on his agenda, he warned of a serious economic crisis.
“If Trump succeeds in forcing mass deportations, along with Elon hacking the government, firing people and cutting the deficit, there will be a severe initial overreaction in the economy,” one anonymous user posted on X.
“The market will collapse. But when the storm passes and everyone realizes we are in good shape, it will be a quick recovery to a healthy and sustainable economy,” the post added.
In response, Musk he said“That sounds about right.”
ABC News reached out to Musk-owned companies Tesla and SpaceX for comment. He didn’t answer right away. America PAC did not immediately respond to a request for comment.
In response to ABC News’ request for comment, the Trump campaign praised Musk, saying he is equipped to help improve government efficiency.
“As President Trump has said, Elon Musk is a genius, an innovator, and has literally made history by building innovative, modern and efficient systems. Elon Musk has dedicated himself to America’s future to serve President Trump to make sure our government runs more efficiently and uses American taxpayer dollars effectively.” , Brian Hughes, a senior adviser to the Trump campaign, told ABC News.
“The committee will ultimately be staffed and dedicated to this mission, and President Trump has committed to having Mr. Musk lead this committee to look at the functionality of our government,” Hughes added.
On the campaign trail, Trump has vowed to impose tariffs of up to 20% on all imported goods and deport millions of undocumented immigrants. Economists widely the view Such proposals are likely to raise consumer prices, as companies typically pass on the costs of higher taxes and wages to customers.
Trump has also floated the idea of eliminating the income tax for all Americans. US would pay tax revenue with far-reaching tariffs, Trump say Joe Rogan last week.
Elon Musk speaks at a campaign rally for Republican presidential candidate former US President Donald Trump at Madison Square Garden on October 27, 2024 in New York.
Anna Moneymaker/Getty Images
Individual income taxes currently account for roughly half of the $5 trillion the federal government brings in each year. It would be impossible to make up for lost revenue by raising tariffs, experts say previously told ABC News
Last year, the US imported about $3.8 trillion worth of goods US Bureau of Economic Analysis find To generate the same amount of revenue as the individual income tax brings in today, the rate would have to be set at about 70%, said Alan Auerbach, a law professor at the University of California, Berkeley.
However, a tariff of this magnitude would significantly reduce US trade, reducing the total amount of goods imported and, in turn, reducing tax revenue.
Musk, who runs Tesla and SpaceX, has taken an active role as a major donor and vocal proponent of backing Trump.
Musk gave about $75 million to the Trump Super PAC in a three-month period ending in September, according to disclosures filed with the Federal Election Commission. Musk, who owns X, frequently posts pro-Trump messages on the social media platform, where he has more than 202 million followers.
The US national debt is currently around $35 trillion. President Joe Biden has added to the national debt during his tenure, as has Trump.
Vice President Kamala Harris’ economic plan would increase primary deficits by $1.2 trillion over the next 10 years, according to the model budget. University of Pennsylvania Wharton School of Business. Trump’s plans, on the other hand, would increase the primary deficit by $5.8 trillion over that period, the model found.
Speaking in a telephone town hall Friday, Musk vowed to closely scrutinize the federal budget if appointed head of the “government efficiency committee.”
Does the role mean “looking at every line, every expense and saying is this necessary?” Musk said.
