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Rallying Behind Innovation: Why Elon Musk and Vivek Ramaswamy Are Key to America’s Fiscal Future

 

 

Dismiss progressives’ complaints. The US relies on Elon and Vivek to prevent a deficit crisis. | Opinion


Despite collecting considerably more tax revenue last year, the Biden-Harris administration has increased the deficit by another $138 billion, a trend that is not sustainable.

Progressives seem to find themselves in a difficult political situation, ensnared by their own anger and fears. Judging by their discourse, they might be stuck there for an extended period. (Sending thoughts and prayers.)

 

With the Democrats becoming increasingly ineffective, a second Trump administration has the chance to significantly disrupt the Washington establishment, which includes making drastic reductions to federal spending and restructuring the bloated bureaucracies.

The need for drastic action can be seen in the annual budget deficit, which stands at $1.8 trillion for fiscal year 2024. In a period of relative peace and economic stability, the deficit has risen by 8% in just one year, despite an 11% increase in federal revenue. In simpler terms, while the Biden-Harris administration gathered substantially more tax money last year, they still managed to increase the deficit by $138 billion. Such a situation is undoubtedly unsustainable.

This is where President-elect Donald Trump’s new Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy, comes into play.

 

Elon Musk operates at an exceptional level, having established Tesla as the most valuable car manufacturer globally and transformed SpaceX into a key player in space exploration and satellite communications.

Will Musk achieve what Obama’s Simpson-Bowles could not?

 

If Musk and Ramaswamy can even partially realize their vision of cutting $2 trillion from government spending, it could significantly enhance our economy.

 

“They’ll require guidance from Washington budget specialists like former Capitol Hill staffers,” said Chris Edwards, an economist at the Cato Institute focused on government expenditure. “These are individuals who previously served on budget committees and worked for the Office of Management and Budget. They need such expertise to identify what can be cut and how.”

 

This isn’t the first initiative aimed at cutting government costs. In 2010, President Barack Obama established the Simpson-Bowles commission to propose budget cuts aimed at reducing the deficit over ten years.

 

However, the recommendations from that commission did not gain momentum in Congress. Since its formation, about $16 trillion has been added to the national debt. Thus, skepticism is understandable. Trump and Congress must follow through on the cuts proposed by Musk and Ramaswamy, even if the president must resort to vetoing bills to do so.

Edwards emphasized that Republicans need to prioritize deficit reduction starting next year.

“Republicans need to show that deficits are on a downward trajectory,” Edwards remarked. “They don’t necessarily need to implement significant spending cuts immediately, but they must reassure financial markets and the Federal Reserve that things are headed in the right direction.”

It’s a common misconception that the executive branch doesn’t significantly influence the economy. The sizable federal deficit is a contributing factor to rising inflation. As Edwards highlighted, “The current deficits and debt are unprecedented for our country.”

DOGE should prioritize cutting this department first

 

According to the Cato economist, DOGE could improve efficiency by initially targeting a popular yet underperforming budget category. Proposing cuts to federal spending on K-12 education might seem extreme, but it would demonstrate that Musk and Ramaswamy are genuinely committed to reform.

 

“K-12 education presents a large and appealing opportunity for cuts,” Edwards pointed out. “George W. Bush famously endorsed the No Child Left Behind initiative, leading to increased federal funding and involvement in education. This model has failed, as evidenced by declining test scores. Today’s Republican Party has evolved regarding education issues. School choice has proven successful.”

I fully support Edwards’ recommendation.

While public education is essential, simply increasing spending has not translated into improvements.

 

This has resulted in improved outcomes.

The budget for the Department of Education for the current fiscal year is nearing $80 billion, which is almost $10 billion higher than the budget approved just five years prior.

On Tuesday, Edwards and co-writer Adam N. Michel released an article proposing cuts totaling $4.8 trillion over the next decade. Suggestions include privatizing Fannie Mae and Freddie Mac and restructuring Medicaid funding by providing block grants to states.

Democrats are likely to criticize these proposals and more. Republicans should disregard their complaints and instead prioritize reducing taxpayer expenses, managing the deficit, and protecting the nation from an impending economic crisis that could arise if current trends continue.