Elon Musk, the world’s richest man, has become perhaps the most prominent business supporter of Donald J. Trump’s campaign. But even he has doubts about whether the former president’s economic plans will rapidly accelerate the U.S. economy.
Mr. Trump has called for mass deportations of illegal immigrants, an extension of the 2017 tax cut, and a series of additional tax cuts. He has also promised to impose a flat tariff on all imported goods.
Budget experts estimate that these policies could cost up to $15 trillion over 10 years, but Mr. Trump believes economic growth and eliminating government waste will easily ease those costs. He said that it would be possible to cover the
But Musk understands it’s not that simple.
As part of his endless stream of late-night replies to fans on his social media platforms, Musk responded early Tuesday to a pseudonymous account claiming there would be an “early severe overreaction in the economy.” If Trump were elected and implemented his plan, “the market would plummet,” he said. Thereafter, the report said, “a rapid recovery to a healthier and more sustainable economy is expected.”
Musk responded at 1:46 a.m. with three words: “That seems about right.”
Given that Trump said on Nov. 5 that if the former president wins, he would appoint a billionaire to Musk to oversee a new “Government Efficiency Commission” focused on cutting spending, the economic Mr. Musk’s statements regarding this are important.
Musk acknowledged that cutting government spending could be painful. During a telephone town hall last Friday night, Musk was asked by voters to take the first steps toward reducing the nation’s debt if he is appointed to serve on Trump’s promised Government Efficiency Commission. Mr. Musk actively addressed the effects of this austerity policy.
He said it would be relatively easy to cut spending given the government’s wasteful spending, saying there were “no exceptions” and calling for the tax code to be simplified to eliminate loopholes.
“But the most important thing is that in order to live within our means we need to cut our expenses. While this will inevitably involve temporary difficulties, it will ensure long-term prosperity. “Yes,” Musk said at the end of his response. He did not elaborate on the difficulties.
Musk did not immediately respond to a request for comment. Harris’ campaign used Tuesday’s remarks to claim it was evidence that Trump would mismanage the economy.
Musk, owner of social media platform I am doing it. He plans to meet with members of Trump’s transition team to discuss the issue. Mr. Trump privately told Mr. Musk that he wanted the entrepreneur to reduce government costs, just as he had done with Company X.
Trump has said little about how he will cut spending. He says tax incentives to combat climate change are wasteful and calls for repealing much of the anti-inflation law passed by Democrats in 2022. But Trump has vowed not to enact cuts to social safety net programs such as Social Security and Medicare, the largest contributor to the nation’s roughly $36 trillion debt.
“We’re all about growth,” Trump said at Chicago’s Economic Club this month, adding that a combination of tax cuts and tariffs would force companies to invest in American manufacturing.
Economists are deeply wary of Trump’s economic plans.
An analysis released last month by the nonpartisan Peterson Institute for International Economics found that Mr. Trump’s policies would increase inflation and slow economic growth. They found that his plan would be especially damaging to U.S. manufacturing and agriculture, especially if America’s trading partners responded with their own tariff hikes.
