If Elon Musk joins the USA authorities following a Donald Trump victory within the presidential election, he would be the newest in a succession of billionaire businesspeople to carry public workplace.
From the late Vice President Nelson Rockefeller and former New York Metropolis Mayor Michael Bloomberg to Illinois Governor JB Pritzker and former President Trump himself, the super-rich have lengthy held positions of energy in Washington, DC and throughout US state capitals.
With polls displaying Tuesday’s election on a knife edge, Musk is in severe rivalry to hitch Trump’s cupboard after the Republican candidate floated the concept of the tech billionaire serving as so-called “Secretary of Price Slicing”.
Since coming into politics after many years in the actual property enterprise, Trump has displayed a penchant for drafting high-net-worth people from the personal sector.
Throughout his first time period in workplace, Trump nominated 5 folks as Cupboard secretaries who had spent all or practically all of their careers within the enterprise world, together with Exxon Mobil CEO Rex Tillerson, billionaire philanthropist Betsy DeVos, and former World Wrestling Leisure CEO Linda McMahon.
In accordance with an evaluation by the Pew Analysis Centre, Trump’s first slate of Cupboard nominees had extra businesspeople with no public sector expertise than another earlier than it.
Musk, the world’s richest man, has known as for drastic reductions in authorities spending, though he has offered few specifics about the place he would direct cuts.
Throughout Trump’s Madison Sq. Backyard rally on Sunday, the CEO of Tesla and SpaceX CEO stated the federal price range might be slashed by “a minimum of” $2 trillion.
“Your cash is being wasted, and the Division of Authorities Effectivity goes to repair that,” Musk instructed Howard Lutnick, the chief government of Wall Avenue agency Cantor Fitzgerald and a member of Trump’s transition planning crew, when requested how a lot he might “rip out” of the newest federal price range.
“We’re going to get the federal government off your again and out of your pocketbook.”
Such a discount in spending – equal to just about one-third of final 12 months’s federal price range of $6.75 trillion – would virtually definitely be unattainable to attain with out steep cuts in areas that politicians throughout the aisle have been loath to the touch, together with social safety, healthcare, veterans’ advantages, and defence.
Musk himself has acknowledged that such a pointy reduce in spending would inflict severe financial ache.
On Tuesday, he responded “sounds about proper” to a put up on X that predicted there could be “an preliminary extreme overreaction within the financial system” and “markets will tumble.”
SpaceX and Tesla didn’t reply to requests searching for remark from Musk.
Whereas politicians pledging to finish wasteful spending is hardly new, there isn’t any “exact parallel” to a businessman like Musk overseeing a division tasked with bettering authorities effectivity, stated Bruce Schulman, a professor of historical past at Boston College.
Political candidates that touted their expertise in enterprise, from former President George W. Bush to presidential nominee Mitt Romney, sometimes had a monitor document in public service earlier than searching for to enter the best ranges of the federal authorities.
Authorities commissions geared toward eliminating waste and inefficiency – such because the Hoover Fee and the Nationwide Partnership for Reinventing Authorities led, respectively, by former President Herbert Hoover and Vice President Al Gore – have additionally typically been led by seasoned authorities officers.
Schulman stated whereas initiatives to remove waste have been endorsed at varied instances by each Democrats and Republicans, they’ve been largely for “political present”.
“These efforts have had marginal results, and principally been for political present. However total, each the scale of the federal authorities in variety of staff and when it comes to spending have been flat for a very long time although the US inhabitants has elevated dramatically. The federal authorities is way leaner than it was within the Sixties/70s,” Schulman instructed Al Jazeera.
John Pelissero, director of Santa Clara College’s Markkula Middle for Utilized Ethics, questioned Musk’s standing to carry a authorities place given his lack of expertise within the public sector.
“With none working expertise in authorities, one may marvel how he might be certified to occupy a place, for instance, that focuses on authorities effectivity,” Pelissero instructed Al Jazeera.
“It’s value noting that previous authorities effectivity or reform commissions have usually been led by a person who has earned public belief and has deep expertise in authorities.”
Whereas Musk has been lauded as a tech visionary within the personal sector, his enterprise monitor document will not be with out its stumbles and controversies.
Since his $44bn takeover of X in 2022, the social media platform’s worth has fallen about 80 p.c, in line with a valuation by the funding large Constancy, largely on account of advertisers leaving the platform over its loosening of content material moderation.
The Environmental Safety Company has accused SpaceX of polluting the world round its Texas base, damaging a surrounding state park and federal wildlife refuge.
In September, the company fined SpaceX $148,378 over a chemical spill – a minuscule penalty for a corporation of its dimension that Musk nonetheless branded as “foolish”.
A Cupboard place could be an attractive reward for Musk, who has emerged as considered one of Trump’s most vocal and highly effective supporters since July’s failed assassination try on the previous president.
Musk’s firms maintain billions of {dollars} in contracts with authorities companies, elevating considerations that his elevation to the federal government would create doubtlessly big conflicts of curiosity.
SpaceX alone has obtained greater than $15bn in authorities contracts for launching rockets for NASA, satellites for the Pentagon, and ferrying US astronauts to the Worldwide Area Station.
In February, the Wall Avenue Journal reported that the corporate was awarded a $1.8bn categorized authorities contract with an unnamed authorities company.
Tesla, which is dealing with regulatory scrutiny from quite a few authorities companies, stands to learn from doubtlessly looser regulatory enforcement throughout a pleasant Trump administration, in addition to tax cuts and subsidies.
X, in the meantime, offers Musk an “outsized potential to affect authorities coverage and amplify his or Trump’s views/insurance policies in authorities”, Pelissero stated, including that Musk ought to promote the platform if he’s to enter authorities.
Musk’s affect has already been on full show within the presidential race.
The billionaire has poured a minimum of $118m into Trump’s marketing campaign by means of his America tremendous PAC, advocated vigorously for Trump on X – together with, at instances, by spreading the Republican candidate’s false claims of election fraud – and stumped with him on the marketing campaign path.
His efforts to advertise Trump have even gone so far as testing the bounds of election legislation.
On Monday, Philadelphia’s district lawyer filed a lawsuit requesting a choose to dam Musk’s $1m day by day giveaway for registered voters in battleground states, calling it an “unlawful lottery scheme”.
The transfer got here days after the US Justice Division despatched America tremendous PAC a letter warning that the lottery for voters who signal a petition supporting the First and Second Amendments of the US Structure might violate federal legislation.
Regardless of his showmanship and uncensored feedback, Musk is in some methods following a well-recognized playbook for US elites, stated Daniel Krcmaric, an affiliate professor of political science at Northwestern College in Chicago and the co-author of a 2023 examine on billionaire politicians.
“All of those ways are a part of a broader technique to make use of his unbelievable wealth to sway – utilizing casual means – the US presidential election in his most well-liked course,” Krcmaric instructed Al Jazeera.
It isn’t uncommon for the ultra-wealthy to throw their sources behind political candidates, whether or not Republican or Democratic, or exert affect over the federal government by means of their enterprise pursuits, similar to within the case of John Pierpont Morgan – aka J.P. Morgan – who functioned as a de facto central banker on the flip of the twentieth century.
Although removed from extraordinary, it’s much less widespread for them to hunt workplace.
Analysing information from the Forbes International 2000 listing of billionaires, Krcmaric’s examine discovered that 11 p.c of billionaires worldwide have both sought or held formal public workplace.
Transitioning from enterprise to politics is much extra widespread in autocracies than democracies, in line with the examine, with 29 p.c of billionaires searching for or holding workplace within the former, in contrast with 5 p.c within the latter.
Worldwide, the listing of billionaire businessmen-turned-politicians consists of former Italian Prime Minister Silvio Berlusconi, former Czech Prime Minister Andrej Babis, former Thai Prime Minister Thaksin Shinawatra and former Australian legislator Clive Palmer.
The US has a decrease price of political participation by billionaires than common, at simply 3.7 p.c, as a result of many different avenues of affect out there to them, in line with Krcmaric, together with bankrolling campaigns and advocacy teams.
Throughout the present US presidential election cycle, the 50 greatest donors have given greater than $2.5bn to affect political races and causes – about two-thirds of which favoured Republicans and conservative-aligned causes.
Whereas Musk has solely begun explicitly supporting Trump just lately after years of expressing help for Democrats, he has publicly recognized with conservative and right-wing causes since a minimum of 2022, the 12 months he purchased Twitter – as X was then identified – in a hostile takeover.
Quickly after shopping for the platform that October, Musk reinstated the accounts of quite a few right-leaning figures who had been banned for inflammatory posts or spreading misinformation, together with Trump, self-described “misogynist” influencer Andrew Tate, Canadian psychologist Jordan Peterson, and US legislator Marjorie Taylor Inexperienced.
At across the identical time, Musk started utilizing his X account to problem warnings about the way forward for Western civilisation and the affect of the “woke thoughts virus”, referring to what critics say is left-wing politics’ help of censorship and obsession with race, gender and sexual id.
“This can be a battle for the way forward for civilization. If free speech is misplaced even in America, tyranny is all that lies forward,” Musk stated in a put up on November 29.
As a self-described “free-speech absolutist”, Musk additionally dramatically curtailed content material moderation on X and scrapped the platform’s “verified” function for high-profile figures similar to celebrities and politicians.
The modifications drew criticism from liberal activists and misinformation students, who warned that they might result in an increase in hate speech and the impersonation of public figures.
Musk’s engagement with fringe figures, similar to conspiracy theorist Alex Jones, on the platform was additionally held up by critics as proof of a pointy flip to the appropriate.
Musk additionally started quietly donating tens of thousands and thousands of {dollars} to conservative causes within the US, channelling cash to the PAC Residents for Sanity and the presidential marketing campaign of Florida Governor Ron DeSantis, The Wall Avenue Journal reported final month.
In July, Musk introduced his intention to maneuver the headquarters of X and SpaceX from California to Texas to protest towards a legislation that bans colleges from forcing academics to inform dad and mom when their youngster modifications their gender id.
Musk’s flip to the appropriate has additionally been on show in his expressed views about worldwide affairs, together with his promotion of a “plan for peace” in Ukraine that critics say intently aligned with the Kremlin’s speaking factors on the battle.
Final week, the Wall Avenue Journal (WSJ) reported that Musk had been in common contact with Russian President Vladimir Putin since October 2022, quoting present and former US, European and Russian officers.
Whereas lots of the particulars of the discussions had been unknown, Putin reportedly requested Musk to chorus from activating his Starlink satellite tv for pc web service over Taiwan as a favour to his ally, Chinese language chief Xi Jinping, the newspaper stated, quoting a former Russian intelligence officer.
Xi, who has pledged to “reunify” democratic Taiwan with the Chinese language mainland by power, if crucial, would seemingly reduce Taiwan’s communication traces within the occasion of an invasion or blockade, in line with safety analysts.
Musk didn’t reply to WSJ’s request for touch upon contact with Putin, the newspaper stated, though he later mocked the article on X with out denying its claims.
Whatever the end result of the election, Musk will proceed to exert monumental affect, whether or not from the sidelines or from throughout the White Home, stated H.W. Manufacturers, a professor on the College of Texas at Austin.
“Social media has given personal people avenues to superstar that didn’t exist earlier than. Trump and Musk are good examples,” Manufacturers instructed Al Jazeera.
“Trump had the extra benefit of his tv present, however he outflanked common Republicans in 2016 in a method that might have been practically unattainable in earlier generations.”
