Elon Musk Warns of US ‘Bankruptcy’ Without Spending Cuts
In his first public appearance alongside US President Donald Trump at the White House, tech billionaire Elon Musk addressed concerns over the United States’ financial stability, warning that without immediate budget reductions, the country could face bankruptcy.
Good compilation of @DOGE discussion https://t.co/uPm9zlcIj4
— Elon Musk (@elonmusk) February 12, 2025
Musk, who has been appointed to lead the Department of Government Efficiency (DOGE), a newly created federal body focused on restructuring government spending, stood beside Trump in the Oval Office, reinforcing the administration’s commitment to aggressive fiscal reforms.
Dressed in a black t-shirt, overcoat, and a signature “Make America Great Again” cap, Musk dismissed concerns over transparency and potential conflicts of interest, acknowledging that while mistakes were inevitable, the government’s unelected bureaucracy was a more pressing challenge.
Trump Grants DOGE Expanded Powers
During the event, Trump signed an executive order, granting DOGE sweeping powers to enforce cost-cutting measures across government departments. The directive instructs agency heads to prepare for further spending reductions, signaling an acceleration of Trump’s ongoing effort to streamline federal operations.
However, the restructuring has sparked backlash, with critics decrying the centralization of power under the Trump administration. Legal experts have raised concerns over whether Musk’s role violates constitutional checks and balances, as his privately-led cost-cutting efforts affect government agencies where SpaceX holds major federal contracts.
A Lighter Moment: Musk’s Son Steals the Show
Despite the high-stakes discussion, Musk briefly lost focus when his young son, X Æ A-Xii, made an unexpected appearance. The child, wearing a tan overcoat, leaned against Trump’s Resolute Desk, at one point distracting the audience by picking his nose as Musk discussed the US debt crisis.
Attempting to regain attention, Musk quipped, “Gravitas can be difficult sometimes.” His unorthodox style has made him an icon among Trump’s supporters, with the President referring to Musk’s “ruthless efficiency” as the reason for his appointment.
A Billionaire in Government: Transparency and Scrutiny
Musk’s appointment has not been without controversy. The Tesla and SpaceX CEO, who contributed $250 million to Trump’s re-election campaign, has introduced radical cost-cutting measures, including downsizing federal agencies and laying off employees. These moves have led to nationwide lawsuits and accusations of an unlawful power grab.
Asked about his critics, Musk sarcastically responded, “I have detractors? I don’t believe it.” He defended his position, citing Trump’s electoral victory as a clear mandate for government reform.
“The people voted for major government reform, and that’s what they are going to get,” Musk declared.
Yet, some have questioned Musk’s authority, arguing that his role as an unelected official with sweeping power contradicts his own criticism of unelected bureaucrats. His private businesses, including SpaceX, have billions in federal contracts, raising ethical concerns about conflicts of interest.
Musk dismissed these worries, stating, “It’s not like I think I can get away with something. I’ll be scrutinized non-stop.”
Media Access and Gulf of Mexico Controversy
The White House event also saw tensions between the administration and the press. The Associated Press, one of the largest global news agencies, was barred from covering the event after refusing to comply with Trump’s recent order renaming the Gulf of Mexico as the ‘Gulf of America’.
Trump later took the stage to praise Musk’s work, before shifting his focus to criticizing US judges who have blocked some of his administration’s most controversial policies.
Power Struggles in the White House?
The collaboration between Trump and Musk has drawn attention not only for its policy implications but also for the personal dynamic between two of the most influential and strong-willed figures in America.
A recent Time Magazine cover, featuring Musk seated behind the Resolute Desk, raised speculation about a power struggle between the two. However, Musk quickly dismissed such notions, affirming, “I check frequently with the President to make sure this is what he wants. We talk almost every day.”
With Musk’s expanding influence over government restructuring and Trump’s growing reliance on his expertise, the coming months could reshape the way the federal government operates. But the debate over power, transparency, and constitutionality is far from over.
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