Elon Musk, in a recent interview with Fox Business Network, has stated unequivocally his grievances against what he sees as wasteful federal expenditure. Amongst his targets were ‘entitlements’ such as Social Security, with Musk asserting that these programs are plagued by fraud. In his view, the elimination of such programs could free up significant federal resources.
Coinciding with these comments was a sensational assertion by Musk that around ’20 million’ deceased individuals were, in his estimation, still receiving Social Security benefits. This claim has been dismissed by President Trump’s chosen acting Social Security Administration commissioner. Musk’s aggressive critique of federal welfare programs follows a recent interview where President Trump assured his administration had no intention of dismantling such frameworks.
Sitting alongside Musk in the aforementioned interview, Trump sought to dampen fears that his administrative aims included stripping back social safety net programs, reassuring viewers with his words, ‘None of that stuff is going to be touched.’ However, these words did little to assuage public concerns when Trump, not long after this, backed a House GOP budget plan that proposed significant Medicaid cuts to offset heavy tax cuts for his affluent supporters.
Adding further to the anxiety around these public services, Musk’s comments on Fox Business Network suggest that Trump is not on his own in this vision for America’s public safety nets. Musk’s sentiments serve to confirm fears that Medicaid might not be the only program at risk from Trump’s desire to implement efficiency from a business perspective into the running of the country.
Not mincing her words, Senator Elissa Slotkin, a substantive Democratic voice, expressed her outrage on Musk’s stance, saying, ‘Musk said the quiet part out loud: he’s going after your Social Security and Medicare. Period.’ Her prediction regarding the consequences of this direction was unequivocal: ‘Mark my words. They will make you pay in every part of your life.’
The potential repercussions of this economic upheaval are already beginning to take shape. Contrary to Trump’s optimistic campaign promises of immediate cost reductions upon assuming office, his policies have contributed to unsettling oscillations in the market and led to a stock market sell-off. Attempts to downplay the rising economic uncertainty have only made matters worse.
The trepidation around a possible recession intensified on Sunday when President Trump refused to dismiss the notion, saying, ‘I hate to predict things like that.’ Unfortunately, this only served to exacerbate market tensions, with Monday witnessing the Nasdaq Composite experiencing its third-worst loss ever, surpassed only by two days at the onset of the global pandemic during Trump’s final presidential term.
The impact of these economic policies is felt most acutely by average Americans who do not possess the financial cushion to navigate these turbulent economic times. This, Trump describes as a ‘transition,’ which coming from a President perceived to belong to a select group of powerful business elites, does little to alleviate the concerns of those most vulnerable.
Recent plunges in Tesla’s stock, down 15% on Monday, call into question also the resilience of Musk’s empire during these unstable economic times. Faced with the challenging task of managing his companies amid a spiraling market and a hostile public mood, Musk admitted to ‘great difficulty.’ However, losses for a billionaire like Musk are relative, a small dip in his vast fortune.
Indeed, this negatively affected not the likes of Musk with their significant wealth, but those average citizens whose pensions now face uncertainty due to the wonky market. The ones depending on Social Security, which is now looking insecure and insubstantial, are most at risk. This situation is increasing public fears about the economy, an issue core to Trump’s triumph in the 2024 elections.
Trump’s and Musk’s policies have led to increasing public distaste towards Musk. Yet, amidst the swirling discontent, President Trump reaffirmed his unyielding support for Musk. Despite his previous attempts to publicly curb Musk’s influence, late on Monday night, Trump praised Musk, saying that he’s doing a ‘FANTASTIC JOB’.
Despite the public’s concerns and opposition, Trump cheerfully defended Musk once more and praised him for ‘putting it on the line.’ All this while showing dismay towards those criticizing and boycotting Tesla in an attempt to harm what Musk stands for.
To conclude, the delicate balance of America’s social safety net hangs in a precarious state. Musk and Trump’s fiscal policies and ideological stances could serve to further destabilize an already tense situation. How these changes will affect the daily lives of ordinary Americans remains a concerning uncertainty.