Whereas Elon Musk’s Doge Chainsaws through federal agencies with budget and staff cuts, Tesla and Spacex, Musk’s fabulous wealth cornerstone, continue to benefit from public money. They probably wouldn’t have had success without it.
from Alan OhnsmanForbes staff
OfLon Musk, billionaire born in South Africa President Trump’s massive and casual efforts overseeing the excessive government spending is one of the biggest beneficiaries of the Federal Government’s support. His empire was built on it.
In the past 15 years, Tesla, the $ 1.1 -trillion company of Musk, and Spacex, its 350 billion dollars rating company, have absorbed a stunning $ 30 billion in public dollars. Meanwhile, Musk’s personal wealth withdrew to the point of inclusion, from swelling by $ 2 billion in 2012 at over $ 400 billion in December; Now it is worth $ 393 billion. 13 years ago, the richest person in the world was not even a billionaire.
Republican candidate Mitt Romney labeled Musk a “wild capitalist” in 2012, although long -term financial goods his companies have remembered another Republican moniker for someone living outside public money. In the following years, its companies have developed a symbiotic relationship with federal programs, turning it into more vampire. They include:
- Rocket Spacex missiles, satellite shipments, astronauts with ferry and supplies at the International Space Station and Starlink Services have earned $ 22 billion in the NASA Defense Department, according to President Gwynne Shotwell (although a collection of public available data , sets 3 billion dollars).
- At least $ 4 billion from $ 11.7 billion regulatory credit that Tesla has sold since 2008 were from sales to automobiles that needed to implement the average US fuel economy rules.
- A federal guarantee of $ 465 million for Tesla in 2009 helped the start of fighting then provide its first factory (a gift from Toyota).
- Tesla’s loading network qualified for at least $ 31m in federal funds based on a Trump program recently canceled.
- Tesla buyers have been the best beneficiaries of $ 7,500 tax loans, booking about $ 4 billion since the Obama era. They too are likely to leave under Trump.
- Tesla was briefly identified that she was at work for a $ 400 million contract to supply armored vehicles to the State Department before the agency suspended that plan.
As a context for DOGE’s rapid movement and disrupts efforts for government things-which has so far resulted in an impossible demand to verify $ 55 billion in federal spending cuts and the shooting of at least 200,000 government employees, including FAA staff and specialists who oversee nuclear weapons Safety or attempt to stop a pond of the bird flu, many of whom were in a hurry to unclear-confidence of Musk’s decades in government funds to grow and enrich its companies is a little Disonant Norman Eisen, an elderly associate in the left institution of brookings who is involved in a lawsuit filed on behalf of Federal employees to block Doge from performing actions they believe they violate the Constitution, thinks it is terrible.
“The stunning level of support that Mr. Musk’s companies have received from the federal government over the years does the damage it is doing to the government an act of rank hypocrisy,” Eisen said for stale. “Even worse, waiting forward, the continued relationship between its trade enterprises and the United States Government creates a series of some of the deepest questions of the conflict we have seen in our history.”
Tesla and CEO of Spacex Elon Musk has an electric saw as he leaves the scene at the conservative political action conference in Oxon Hill, Maryland.
Getty Images
Musk did not immediately respond to a comment request on the matter. Doge does not have a publicly identified spokesman and a White House spokesman did not respond immediately to a comment request.
Musk has honored an image as an entrepreneur of taking the risk, probably the most successful from the 21st century so far. However, despite his ideas and efforts, his business empire would not have reached its current degree without strong federal support.
Federal funds helped Tesla and Spacex find their base when they were young, unproven beginnings over 15 years ago. In the case of Tesla, which insisted on a bankruptcy presentation at the end of 2008, an advanced production of technological vehicles, or ATVM, borrowed from the Energy Department proved to be a salvation. She helped her create the company’s first factory faster and at a lower cost, due to a lower interest rate than if it were based solely on private funds. This allowed the production of his sedan of model S progress to begin in time in 2012, putting Tesla on the course for future success.
Most likely, the widespread musk would not have happened without the type of Federal Doge and Trump programs are now eliminating.
And Spacex, who had just begun her missiles to orbit in 2008 after numerous failures, would not have become Cargo and Crew’s top provider if the company did not earn a contract of Changed in the game $ 1.6 billion that year. Both companies were shaky betting, but the government’s gambling was paid.
Tesla is now the most valuable automobile in the world, with a $ 1.16 -trillion market lid. Spacex is estimated to be worth $ 350 billion and has been called the most valuable private start in the world. As a result, it is most likely that the vast musk wealth, which stale Rathers at $ 393 billion based on its properties in those companies would not be possible without the type of Federal Doge and Trump programs are now eliminating.
For decades, regeneration in government spending and improving efficiency have been two -party concerns. And although there have been numerous initiatives to address them, the problem only seems to worsen with time. The big difference under Trump is that for the first time in US history, the attempt to find savings has been completely transferred from a billionaire entrepreneur.
In addition to Trump’s efforts to eliminate any future disbursement of grants and funds created by the inflation reduction act and bipartisan law of bipartisan infrastructure that Biden adopted -potentially including $ 4 billion in federal grants for high-speed railway project California-Music of Musk Music is by reducing staff and funds across the board in Federal agencies. And so far, there is no clear indication that many thoughts have entered who and what is expected.
The attempt so far has developed a reputation for taking the first shoot, ask questions later to the musk -set approach when he bought Twitter in 2022 and reduced 80% of its workers. In its first weeks, in addition to the embarrassing, poorly thought out of staff cuts, DGE has been criticized for stopping nih search grants that threaten to slow down medical advances; eliminating most of the budget and USAID staff, ending food and medicine supplies for developing countries; killing the Consumer Financial Protection Bureau; Reduce the IRS staff while the Rampon tax season; Eliminate seasonal staff in national parks; And by potentially eliminating the Education Department, including abbreviations in life funds that go to the poorest school districts in the country.
A protester in a demonstration against US President Donald Trump’s policies and Elon Musk’s government efficiency department in Washington.
AFP through Getty Images
But even Trump fans like Kash Patel, who is likely to win the Senate’s approval as the other FBI director, have stressed how much Musk benefits from federal contracts. Referring to Spacex’s Starlink service in a Fox News interview in December 2021, he said, “we are all paying for it. That is why he is so rich.”
“We are seeing the creation of an American oligarchy and that should be deeply about Americans.”
While the billionaire has been Dog’s public face and praised for his efforts by Trump, a federal lawyer this week claimed that Musk is not technically charged with the cost reduction project and “there is no current authority to make government decisions . ” His status is as an unpaid employee of the special government. But because Musk is a government contractor through the spacex, the incredible DOGE access must base data on agencies including the Treasury Department, Social Security, IRS and the Defense Department are annoying nerves.
“How can this guy allow in the front door, where are all contracts when he is contractor?” Retired US Army. Lt. Lt. Lt. Russel Honoré said stale. “I think this should be illegal.”
Trump employees have also said they are relying on Musk to self-identify any potential conflict. But this is far from satisfactory for Eisen, a government ethics specialist in the Obama administration and a co-adviser to the Chamber Judicial Committee in Trump’s first blame.
“We do not know the answers, despite his transparency, for questions like those precautions are taken when he is working on a particular issue, that he has no personal financial interest related to him,” he said.
The implications of DOGE’s efforts are not clear, though they are resulting in painful landing for many agencies that may soon be felt by a larger number of Americans, especially people with lower income, as well as programs run From cities, states and schools you rely on federal funds. So far, Congress, who created all those programs and adopted funds in the past, has not intervened.
The irony that a billionaire who has received billions of dollars from government programs such as Musk, which also provided at least $ 200 million to help Trump be resolved in 2024, is now reducing federal agencies with dubious legal authority is deeply disturbing, Eisen said Eisen , a past ambassador to the Czecheke Republic.
“When you have magnas, including those who have benefited from most of the government in the past, who support a candidate in mind hundreds of millions of dollars, and then the candidate is successful and puts them able to make decisions government that increase these kinds of conflict questions, ”he said. “We have a word about this: It’s oligarch. We’re seeing the creation of an American oligarchy and that should be deeply about Americans.”
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