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| Donald Trump and Elon Musk |
On Tuesday night (11), U.S. President Donald Trump signed an executive order initiating a massive plan to cut federal government jobs. The event took place in the Oval Office of the White House, where billionaire Elon Musk stood alongside the president, taking a central role in the initiative.
The order directs federal agencies to work with Musk’s efforts to downsize the federal workforce, setting in motion widespread layoffs and eliminating government positions deemed obsolete. According to sources close to the White House, the measure could result in at least 600,000 federal employees being laid off over the next two years, which accounts for about 30% of the federal workforce.
Experts estimate that this reduction could save $300 billion over the next decade.
Musk’s involvement in the process has sparked major reactions. During the signing ceremony, the Tesla and SpaceX CEO wore a "Make America Great Again" cap and answered questions from reporters, emphasizing his active role in restructuring the government. The billionaire stated that his goal is to make the public sector more efficient by reducing bureaucracy and eliminating waste.
With his 4-year-old son by his side or on his shoulders, Musk took on the role of the plan’s key architect, stressing that government modernization can be achieved through new technologies and artificial intelligence, significantly reducing the need for federal employees. According to Musk, automation could replace at least 50% of administrative government functions in the coming years, potentially leading to additional cuts of up to $50 billion per year.
Trump’s decision has sparked immediate reactions. His supporters argue that a leaner, more efficient government is crucial for America’s economic competitiveness. However, critics warn of the social consequences of the measure, arguing that mass layoffs of government employees could harm the quality of public services and create instability in the job market.
Financial analysts also point out that while the estimated savings are substantial, decreased consumer spending due to job losses could negatively impact sectors such as housing and retail. Additionally, concerns are growing over Musk’s increasing influence within the government, as his involvement in the project suggests a close alignment between business interests and political decisions raising questions about potential conflicts of interest.
More news: Finance News
Trump’s executive order marks a significant step in his political agenda, reinforcing his commitment to deregulation and reducing the size of the federal government. Musk’s partnership adds a controversial element to the measure, making it one of the most debated topics in U.S. political and economic circles. Moving forward, all eyes will be on the implementation of this plan and its short- and long-term impacts on both the government and American society.
