Did Elon lie about his DOGE cuts?
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Hey, everybody. Welcome back to the Elon Musk Podcast. This is a show where we discuss the critical crossroads that shape SpaceX, Tesla, X, The Boring Company, and Neuralink. I'm your host, Will Walden. Can the newly created Department of Government Efficiency, or DOGE, identify $2 trillion in federal budget savings? How realistic is Elon Musk's revised goal of cutting a trillion dollars?

and what obstacles does Doge face in addressing inefficiencies and waste?

These questions are at the heart of Elon Musk's project to overhaul government spending. Back in October, during a rally for President-elect Donald Trump at Madison Square Garden, Elon Musk made a bold claim. His new advisory committee, DOGE, could recommend federal budget cuts of at least $2 trillion. This figure, representing nearly a third of the federal budget, raised eyebrows across the political and economic spectrum.

Budget analysts quickly dismissed the target as very unrealistic, given that the entire discretionary budget is only $1.7 trillion. Now, Musk doubled down, suggesting Doge would focus on cutting waste and inefficiencies across government agencies. However, during a live interview on X with political strategist Mark Penn on Wednesday, Musk walked back the $2 trillion projection, admitting that the figure was more of a best-case outcome.

Speaking candidly with Penn, Musk said Doge has a good shot at identifying a trillion dollars in cuts while acknowledging the challenges. Musk framed this reduced target as a significant accomplishment. He said, if we try for two trillion, we've got a good shot at getting one. Musk argued that such reductions combined with freeing up the economy to grow could stabilize inflation.

He said, if we can drop the budget deficit from $2 trillion to $1 trillion and free up the economy to have additional growth, such that the output of goods and services keeps pace with the increase in the money supply, then there will be no inflation. So that, I think, would be an epic outcome.

Now, Doge is co-led by Musk and Vivek Ramaswamy, and it lacks the formal authority to actually enact budget cuts or regulatory changes. Instead, it's tasked with making recommendations to the White House after Trump assumes office for the second term. Despite its limited powers, Doge has garnered attention largely due to Musk's reputation as a billionaire innovator with a track record of disrupting industries.

Now, the committee's mission aligns with Trump's broader pledge to streamline federal operations, reduce waste, and rein in spending. However, the feasibility of achieving even Musk's revised goal remains uncertain. Critics argue that meaningful savings would require cuts to mandatory programs like Medicaid, a politically sensitive move that could provoke widespread backlash.

Now, budget experts have been critical of Musk's initial $2 trillion claim, calling it disconnected from fiscal liabilities. And the federal budget, which totals approximately $6.8 trillion, includes a substantial portion allocated to mandatory spending programs such as Social Security, Medicare, and interest on the national debt. These programs are largely untouchable without significant legislative changes.

Now, to achieve savings of a trillion dollars, Doge would likely need to target discretionary spending and implement systemic reforms. However, Musk offered few specifics during his interview, instead describing the government as a target-rich environment for cost-cutting. It's like being in a room full of targets, like you could close your eyes and you can't miss, he said.

Now, Musk also expressed frustration with the entrenched inefficiencies within the government. He said it's very, very hard for people to care about spending someone else's money. Musk noted that even well-intentioned government officials face systemic obstacles that hinder their ability to manage funds effectively. He said the system prevents them from doing so.

Addressing these challenges will require more than identifying areas of waste at all. Demand structural reforms to ensure greater accountability and efficiency in federal operations. Musk has pointed to excessive regulations as a key area for improvement, arguing that outdated and overly complex rules impede progress and inflate costs. Now, if you're on a podcast platform that allows you to comment on

Please let me know what you think about this. Some people think that Elon Musk is using Doge as kind of a cover-up to get deals for his companies or pave the road, so to speak, for new Tesla models or for SpaceX to launch their rockets with less regulation.

I don't know. What do you think? Let me know in the comments down below. But also, Musk criticized the regulatory environment, which he claims has made large-scale projects essentially illegal. He highlighted the inefficiencies caused by extensive paperwork and delays,

I know this for a fact. They were delaying SpaceX's Starship in Boca Chica, Texas from launching for a long time due to the environment and environmental causes, the EPA. And he asserted that Doge would prioritize eliminating regulations where the harm is worse than the good. The NFL playoffs are better with FanDuel because right now new customers can bet $5 and get $200 in bonus bets. Guaranteed. That's $200 in bonus bets. Win or lose.

Now, while this approach may resonate with proponents of smaller government, it risks sparking opposition from those who view regulations as essential safeguards.

The prospect of massive budget cuts has drawn mixed reactions from lawmakers. While many congressional Republicans have voiced support for Doge's goals, some Democrats have expressed concerns about the potential impact on public services and social programs. Zach Nunn, who's a Republican from Iowa, advocated for reducing federal overreach, but stopped short of endorsing specific cuts.

Now, Trump transition team has yet to comment on Musk's revised estimate, and it remains unclear how closely the administration will align with Doge's recommendations. For now, the committee operates independently.

with its findings expected to inform broader policy decisions. Now, Musk remains very optimistic about Doge's potential. Despite the scaled-back expectations, he described the committee's work as a critical step toward restoring fiscal discipline and fostering economic growth. However, the success of this initiative will depend on its ability to navigate political opposition, bureaucratic inertia, and the complexities of federal budgeting.

Now, let me know in the comments what you think would happen if Elon Musk cut $2 trillion. Also, keep the conversation alive on our Discord. There's going to be a link in the show notes or description for you. Hey there, Ryan Reynolds here. It's a new year, and you know what that means. No, not the diet. Resolutions. A way for us all to try and do a little bit better than we did last year. And my resolution, unlike big wireless, is to not be a raging a**.

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