Elon Musk and friend Donald Trump: Where will this combination lead America?Image: trapezoid
The tech tycoon, now one of Donald Trump's closest confidants, has outlined his plans to shrink the size of the U.S. government. He wants massive layoffs and the elimination of subsidies and regulations.
Thomas Vanhove/t-online
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Elon Musk, the high-tech entrepreneur appointed as a special adviser to future U.S. President Donald Trump, unveiled on Wednesday his plans to overhaul U.S. government agencies. An article in the Wall Street Journal with businessman Vivek Ramaswamy called excessive bureaucracy an “existential threat” to American democracy. “Now is the time for decisive action.”
Tesla boss Musk wants help from the Supreme Court. The Supreme Court ruled in 2002 that U.S. authorities cannot make decisions on certain important economic and social issues without consulting Congress. In June, the Supreme Court also overturned a ruling requiring courts to rely on authorities' interpretation of the law.
The Biden administration is already feeling the consequences: student debt relief was eliminated and overtime pay bills were passed. The decrees have not yet been approved by Congress. In Musk's view, there are many federal regulations that go beyond what Congress legally enacted.
Trump should decide to lay off workers
Musk clearly wants to use the underlying ruling as a basis for invalidating thousands of regulations. In addition, there will be large-scale layoffs and a large number of subsidies will be cancelled.
“Voters gave Donald Trump a clear mandate for sweeping change on November 5, and they deserve it.”
Musk and Ramaswamy expect lawsuits, but they're betting on Donald Trump. This may invalidate decisions taken by the authorities by decree. Legal protections for public service prevent the president or his appointees from firing federal employees. However, according to the two businessmen, the law allows for layoffs, but not for specific employees.
It also authorizes the president to promulgate rules of the game. Trump could use this far-reaching power to curb the “runaway growth of government.”
Conservative majorities in Congress and the Supreme Court
The conditions for the Efficiency Commission, chaired by Musk and Ramaswamy, are excellent: Republican majorities in the House and Senate, and six of the nine Supreme Court justices considered conservatives.
Still, skepticism remains: William Buzbee, a professor at Georgetown Law School who specializes in administrative law at the Georgetown University Law Center in Washington, calls Musk and Ramaswamy's interpretation of the recent Supreme Court case “very complex”. He argued that none of the decisions significantly limited the authority's powers as they claimed.
Entrepreneurs want to become volunteers
Trump has appointed Thomask and Ramaswamy to lead the Department of Government Effectiveness (DOGE), a new department responsible for government efficiency. The two entrepreneurs are tasked with promoting the restructuring of government agencies through concepts and proposals. Government agencies are expected to be significantly reduced by mid-2026.
“We will serve as outside volunteers, not federal officials or employees,” Musk and Ramaswamy wrote. Musk has close ties to government authorities in many ways through his companies SpaceX and Tesla, and his consulting work has raised questions of massive conflicts of interest. Ultimately, this could lead to entrepreneurs actually pushing for the abolition of the authorities that regulate their companies. (t-online/con)
Sources used:
- reuters.com: “Musk, Ramaswamy will rely on Supreme Court ruling to slash U.S. agencies” (English)
- wsj.com: “Elon Musk and Vivek Ramaswamy: DOGE government reform plan” (English)
- Information from AFP
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