While admitting that the target goal of cutting $2 trillion from the U.S. budget is overly optimistic, Elon Musk said his plan still could result in "an epic outcome" of "no inflation."
After Musk and fellow businessman Vivek Ramaswamy were named by President-elect Donald Trump to head the advisory Department of Government Efficiency, the Tesla and SpaceX CEO said he could save the government at least $2 trillion.
During an X interview Wednesday with political strategist Mark Penn, Musk admitted the goal was high.
"I think we'll try for $2 trillion. I think that's like the best-case outcome," Musk told Penn. "But I do think that you kind of have to have some overage. I think if we try for $2 trillion, we've got a good shot at getting one.
"And if we drop the budget deficit from $2 trillion to $1 trillion and kind of 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. That, I think, would be an epic outcome."
Musk added that the current "target-rich" government environment — "if you look in any direction" — offers many ways to save money.
"It's like being in a room with targets," he said. "You could close your eyes and you can't miss.
"There's just a lot of waste in government because … especially the federal government … you just got a situation where the checks never bounce. Like they've got the infinite money computer."
Musk said there are inherent characteristics that oppose saving money in the government.
"It's very, very hard for people to care about spending someone else's money," Musk said. "Actually, I know people in the government who do care about, just as a matter of principle, spending money effectively. And they try to do so, and they can't.
"The system prevents them from doing so."
He offered the example of officials being told to spend up to the amount for which they've been budgeted instead of spending less, "even on nonsense stuff."
"Because if they don't spend their budget, their budget gets reduced," he said. "So it's actually sort of a perverse incentive to waste money."
DOGE, an advisory panel with no official authority, is expected to make recommendations to the White House after Trump is sworn in Jan. 20.
Charlie McCarthy ✉
Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.
© 2025 Newsmax. All rights reserved.