Elon Musk predicts that he can cut at least $2 trillion from the U.S. federal budget, a lofty goal that would require unprecedented levels of fiscal austerity since the end of World War II.
The target Musk mentioned at the rally last Sunday at Madison Square Garden exceeds the spending Congress allocates annually for government operations, including defense. This may require substantial cuts to popular benefit programs like Social Security, Medicare, Medicaid, and veterans' benefits.
In short, it's easier said than done—even for the richest people in the world. Trump stated that if he wins a second term in the White House, he will appoint Musk to lead a government efficiency committee.
In the last fiscal year, U.S. government spending exceeded $6.75 trillion, with over $5.3 trillion going to debt interest and benefits such as Social Security, healthcare, defense, and veterans' benefits, all of which are politically contentious and notoriously difficult to persuade Congress to cut.
Musk's own companies (including Tesla and SpaceX) hold billions of dollars in federal contracts and benefit from government spending, including electric vehicle tax credits and infrastructure investments, further highlighting the difficulty of implementing $2 trillion in fiscal cuts.
Trump's first term demonstrated how difficult it is to achieve spending cuts. His efforts to cut subsidies for the Affordable Care Act failed in the Senate, and Congress rejected many of his other proposals to cut domestic agency spending.
Trump ultimately agreed to significantly increase discretionary spending, leading to a series of bipartisan agreements that provided trillions of dollars in pandemic relief, but the deficit ballooned as a result. However, Trump later stated that he would reduce spending by withholding funds approved by Congress, challenging a 1974 law that restricted the president's power to withhold appropriations.
The closest to Musk's austerity policy is the budget proposal put forward by Republican Senator Rand Paul, which calls for a 6% annual reduction in spending over five years until the U.S. budget is balanced.
The blueprint does not specify which programs will be cut and faced opposition from Republican defense hawks in the Senate last month, resulting in a procedural vote of 56 to 39, including top Republican Roger Wicker of the Armed Services Committee and top Republican Susan Collins of the powerful Appropriations Committee.
If Trump's strategy of withholding appropriations fails, he will need Congressional support for his spending cuts plan, while lawmakers are generally reluctant to pass the pain of cuts onto projects that deliver billions of dollars to their states and constituents.
In the Senate, cutting mandatory federal spending programs, excluding Social Security, requires only a simple majority vote. However, it typically takes 60 votes to overcome the Senate's 'filibuster' rule on annual spending bills, giving Democrats leverage to block significant cuts. (The 'filibuster' rule allows senators to extend debate on a bill, effectively delaying a vote and using various tactics to prolong the legislative process.)
The infighting within the Republican Party over spending levels and policies forced Republican leaders to repeatedly seek Democratic votes to keep the government open and extend the federal debt ceiling, which will need to be raised again next year.
The mysterious 'whale' bets another $2 million, and Trump's winning odds soar close to 67%!
Trump's lead in the top blockchain-based betting markets is nearing 67%, as a mysterious 'whale' continues to bet on his victory in the presidential election scheduled for November 5. Polymarket data shows that on October 28, the odds of Trump winning the election exceeded 66.3% on the leading decentralized prediction market. After a Polymarket 'whale' placed a $2 million bet in support of Trump, his odds increased.
On October 28, on a post from the on-chain intelligence company Lookonchain, it was reported that since October 11, this 'whale' has spent $7.22 million to buy 11.28 million shares of 'Yes' stock for Trump winning the U.S. election, with unrealized profits of $256,000.
Musk stated that with only seven days to go until the 2024 U.S. presidential election, decentralized prediction markets may provide more accurate forecasts than traditional polling systems.
Article reposted from: Jin Shi Data
