According to Musk, there are two ways in which this taxation occurs: directly through income tax and indirectly through inflationary money supply expansion.
In his most recent attack on government spending, Elon Musk did not mince words when he claimed that “excess government spending is what causes inflation!”
“ALL government spending is taxation,” the CEO of SpaceX and Tesla contended, describing it as a “very important concept to appreciate.”
According to Musk, there are two ways in which this taxation occurs: directly through income tax and indirectly through inflationary money supply expansion.
In order to reduce wasteful government spending, Musk has been recruited to head the new “Department of Government Efficiency” (DOGE). DOGE was established by former President Donald Trump to find and cut unnecessary federal spending, and Musk has promised to make the process open and participatory.
Musk promised “epic” entertainment value when he and the American public ranked and rated government waste, adding, “We will also have a leaderboard for the most insanely dumb spending of your tax dollars.”
As part of his plan, Americans will be able to voice their priorities through a virtual suggestion box that will crowdsource ideas about what should be cut. Musk made it clear that “for maximum transparency, all actions of the Department of Government Efficiency will be posted online.”
Musk is charged with cutting waste and reorganizing federal departments alongside Vivek Ramaswamy, a former Republican presidential contender. Ramaswamy, who has put his Senate campaign on hold to concentrate on this position, declared that DOGE will shortly start collecting cases of fraud and waste in the government from the public. He added, “Americans deserve to be involved in fixing government reform because they voted for drastic changes.”
DOGE’s responsibilities, however, could overlap with those of other organizations, such as the Government Accountability Office (GAO), which also looks into and audits federal spending. What effect Musk’s endeavor may have on his other businesses, such as Tesla, SpaceX, Neuralink, and social media platform X, as well as how it will work with the GAO, are unknown.
Musk has inherited a mission with a short schedule and little financial flexibility, so the stakes are enormous. As a symbolic gift to the American people, Trump has stated that DOGE’s work must be completed by July 4, 2026, which is America’s 250th anniversary. Musk will have a difficult time finding significant savings, though, because two-thirds of federal spending is required for programs like Social Security and Medicare.
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