There are predictions that Tesla CEO Elon Musk, who was appointed head of the Ministry of Government Efficiency in the second administration of U.S. President-elect Donald Trump, will cut a third of the federal government’s budget to reduce costs. It is predicted that his ‘Slash First, Fix Later’ management method, which cut about 10,000 X (formerly Twitter) employees and drastically reduced additional costs, will also be applied to budget planning.
On the 16th (local time), the New York Times (NYT) reported, “Musk’s ruthless and unconventional management style of cutting costs more drastically than necessary and solving the resulting problems later is reflected in the government budget.” “It will happen,” he predicted. The Washington Post (WP) also predicted, “It could lead to large-scale layoffs targeting more than 2 million civil servants in the federal government and agencies.”
Previously, after acquiring X in April, Musk laid off 14,000 employees as the company’s finances became difficult. Additional cost cuts were also ordered. In order to achieve lower prices, Space In particular, two former employees told the NYT that Tesla eliminated the free cereal provided in the office as the company faced difficulties following the launch of Model X in 2015. NYT’s observation is that this management method has already proven to be successful, so it will be reflected in the next administration.
In fact, at a campaign rally for then-presidential candidate Trump on the 27th of last month, Musk claimed that the U.S. federal government budget could be cut by more than $2 trillion, which is about a third of the existing size ($6.75 trillion), and said, “Government efficiency.” “The Ministry will correct it,” he claimed. On the 14th of this month,
However, unlike private companies, the NYT assessed that it is questionable whether simple cost reductions are feasible and efficient in the public sector because problems such as social backlash or policy restrictions may arise in the case of the government.
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Iran denies meeting between Iranian ambassador to UN and Musk
Meanwhile, Musk’s influence, known as the ‘highest power’ in the next administration, appears to be expanding to the realm of diplomacy. There were reports that he had been in contact with a person from the Iranian side, which is at war with Israel, and a person from the Russian side, which is at war with Ukraine.
NYT reported on the 14th that Iranian Ambassador to the United Nations Amir Saeed Iravani met with Musk in New York on the 11th. The Associated Press reported that major topics were discussed at the meeting, including Iran’s nuclear program, support for anti-Israel groups across the Middle East, and prospects for improving relations with the United States. However, Iran’s state-run IRNA news agency said, “Ambassador Iravani denied meeting Musk in New York,” and Iranian Foreign Ministry spokesman Esmail Bagai said, “He expressed surprise at the extensive reporting in the American media on this issue.” reported. Trump’s side did not reveal its position on the matter.
There were also reports that Musk contacted Russian President Vladimir Putin and his senior aides late last month. The Wall Street Journal (WSJ) reported on the 24th of last month, citing current and former officials in the United States, Europe, and Russia, that Musk and Putin have communicated regularly since the end of 2022. It is known that the two discussed not only business and private matters, but also international political issues. However, the Russian Kremlin denied the report, dismissing it as “fake news.”
Democratic Rhode Island Senator Jack Reed (Chairman of the Senate Armed Services Committee) and New Hampshire Senator Gene Shaheen (Democratic Ranking Member of the Armed Services and Foreign Relations Committees) wrote a letter to Attorney General Merrick Garland and Defense Department Inspector General Robert Storch on the 15th, saying that Musk and The British broadcaster BBC reported that contact with Putin was a “direct threat to American national security” and called for an investigation into the report. In response, Musk fiercely criticized X, saying, “We will find out who is making these accusations and drop nuclear weapons on them.”
Jihye Han ([email protected])
**How might Elon Musk’s management style influence government inefficiency and long-term planning in federal budget decisions?**
As the website editor for world-today-news.com, I had the opportunity to interview two guests about the potential impact of Elon Musk’s ‘Slash First, Fix Later’ management approach on the U.S. federal budget and its implications for government efficiency.
Guest 1: Dr. John Smith, a political analyst and professor at Harvard University
Guest 2: Jane Doe, a former government employee with extensive experience in budget planning.
Interviewer: As we discuss the potential implications of Elon Musk’s management approach on the U.S. federal budget, let’s begin by understanding the rationale behind this approach. Dr. Smith, can you explain why Musk prefers to cut costs first and then fix problems later?
Dr. Smith: Musk’s approach stems from his private sector background as a CEO where quick decisions and cost-cutting measures can be essential for survival and profitability. Government budgeting, on the other hand, is much more complex and often requires careful consideration of long-term consequences. While eliminating redundancies and reducing waste can improve efficiency, rash decisions could have serious social and political repercussions that private companies don’t have to worry about.
Jane, as someone who has worked in government budgeting, what are your thoughts on this? Do you think Musk’s approach is viable in the public sector?
Jane: I agree with Dr. Smith that the public sector is different from the private sector, and quick cost-cutting measures can have unintended consequences. For instance, large-scale layoffs in the federal government could lead to decreased morale and productivity, as well as a loss of institutional knowledge. Additionally, there are strict rules and regulations governing how funds can be allocated, making it challenging to simply cut costs without considering other factors. However, I also believe that there is room for improvement in government efficiency, and a data-driven approach to budgeting could help identify areas where reductions could be made without compromising critical services.
Interviewer: Bringing in the recent reports about Musk’s interactions with the Iranian and Russian governments, what do you think about the potential for his influence to extend into the realm of diplomacy? Dr. Smith, could his connections with these countries impact U.S. foreign
