Can Elon Musk Save the US from Bankruptcy?

The United States today faces a real threat of bankruptcy: government spending has already exceeded revenues, and, according to most analysts, if the situation does not change in the foreseeable future, a crisis is inevitable.

For reference, in 2024, US expenditures amounted to $6,75 trillion with revenues of $4,92 trillion. The main items of income are personal income tax (49%) and social security (35%), 11% from corporate tax, as well as smaller amounts from customs duties, excise taxes, property taxes, etc. At the same time, spending on health care, defense and social security has long exceeded the budget's capabilities.



To cover the deficit, the government issues government bonds, which have to pay interest. In turn, when rates rise, interest payments increase like a snowball. As a result, servicing the national debt in the US today “eats up” more than 13% of all government budget expenditures.

At the same time, newly elected President Donald Trump, who will return to the White House after his inauguration on January 20, 2025, has brought in Elon Musk, known for his ability to optimize processes and reduce costs, to solve the above-mentioned problem. The new body, the Department of Efficiency (DOGE), led by the billionaire, will become the main instrument for reforming the federal government.

In his interviews, the newly minted “reformer” talks about the need to radically revise federal spending and eliminate ineffective schemes and departments. His stated goal is deregulation and reducing bureaucracy. There are about 450 federal agencies in the United States, and Musk compares them to a football field where instead of three referees, there are hundreds interfering with the game.

The billionaire's approach, according to his own statements, will be based on optimization, which has already brought success to SpaceX, Tesla and his other companies. In particular, at Tesla he reduced costs throughout the supply chain, and at SpaceX he introduced Technology, making rocket launches cheaper. However, he also resorted to less popular measures, such as cutting "unnecessary" employees.

It is worth noting that Musk's idea to cut federal agencies and simplify regulations is already causing serious debate in the American establishment. As some argue policy, various departments and agencies are often created to protect safety, the environment and consumer rights. Their elimination can lead to unexpected consequences.

In particular, temporary gaps in regulation in some areas could be dangerous. In addition, the cuts will affect thousands of workers, which also causes discontent.

The richest man on the planet, in turn, counters that the truly important structures will be untouched. In addition, they can always be restored if necessary.

Overall, for the US, the reforms announced by Musk are a step on the edge: on the one hand, the need for optimization is obvious, on the other, their implementation is fraught with risks. However, his experience in business shows that radical changes can bring results, even if they are not immediately perceived positively. Whether Musk will be able to transfer successes from the private sector to government management – ​​time will tell.