ChainCatcher news, according to a report by Caixin, Musk admitted during an interview with former Clinton administration advisor and political strategist Mark Penn that the proposed U.S. 'Department of Government Efficiency' (DOGE) is unlikely to achieve the previously promised $2 trillion reduction in federal spending. This is in stark contrast to his statement at a Trump campaign rally last October, where he claimed to 'cut at least $2 trillion.' Musk explained that setting a high goal is to ensure actual results: 'If we try to cut $2 trillion, we can achieve $1 trillion in results.'
According to data from the U.S. Treasury, spending for fiscal year 2024 is $6.75 trillion, while the government's discretionary budget is only $1.7 trillion. Musk stated that if the budget deficit could be reduced from $2 trillion to $1 trillion and economic potential is unleashed to allow goods and services output to keep pace with money supply growth, inflation control could be achieved. Experts predict that Musk and Ramaswamy may focus cuts on social welfare programs like Medicaid.