How Elon could disrupt Washington

Presented by CTIA: How the next wave of technology is upending the global economy and its power structures
Nov 13, 2024 View in browser
 
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By Derek Robertson

Presented by 

CTIA

With help from Mohar Chatterjee

Elon Musk and Vivek Ramaswamy are pictured.

Elon Musk and Vivek Ramaswamy. | Matt Rourke/AP; J. Scott Applewhite/AP

Washington is getting ready to run a wild experiment, testing what happens when one of Silicon Valley’s signature “disruptors” meets the world’s biggest bureaucracy.

Elon Musk showed up in person in the capital Wednesday morning, the day after Donald Trump named him to lead a “Department of Government Efficiency” — an initiative to slash government waste, fraud, and inefficiency, wherever the tech mogul might decide he finds it.

Two big unknowns are already looming over the whole idea. One is exactly which parts of government the new office will target. The other is how seriously it will be taken in Washington.

Musk will co-lead the project with Vivek Ramaswamy, the biotech investor and MAGA cheerleader who ran against Trump in the GOP primary. They’re both outsiders to D.C., and plan to bring a radical outsider’s perspective to the whole idea of government reform.

Trump unveiled the idea with his usual lavish promises in a statement from his transition team shared on Truth Social . “It will become, potentially, ‘The Manhattan Project’ of our time,” he wrote, and “will send shockwaves through the system.”

Musk’s top-line agenda for the project is already straining credulity in Washington. The mogul, who bandied about the idea with Trump for months after the two men first raised it during a live interview on X, said at Trump’s Madison Square Garden rally in October that he’d take $2 trillion out of the federal budget. It’s not clear if he meant over a decade, or per year — in the latter case, it’s an amount large enough to shutter the entire non-entitlement side of the government, the Pentagon included.

Ramaswamy, not to be outdone on the “shockwave” front, has proposed firing federal employees with odd-numbered Social Security numbers.

Serious details are scarce so far on what the DOGE plan will actually look like, how it would enforce changes or even how it would even be staffed. (Musk’s companies and Ramaswamy did not respond to a request for comment.)

One notable detail, however, is that the “department” isn’t a department at all: it will function more like former President Ronald Reagan’s Grace Commission , meant to control federal spending costs, providing “advice and guidance from outside the government” to slash spending and restructure federal agencies.

Musk has nevertheless jumped straight into the fray: He spent today escorted by Trump on Capitol Hill, attending the House Republican conference meeting and otherwise familiarizing himself with the government that his $200 million helped elect.

It’s unclear yet whether even the most hawkish appropriators have the stomach for Musk’s proposed buzzcut. With promises to use his PAC to pick winners in upcoming Republican primaries, he potentially could have a lot of pull in Congress as a donor, but (very) early returns aren’t yet promising for his influence: The Senate GOP conference elected Sen. John Thune (R-S.D.) as majority leader over Musk’s pet candidate, Rick Scott (R-Fla.).

Still, Musk will at least forcefully suggest the same ruthless management for the federal government that he’s deployed at X and Tesla (all while reassuring Tesla investors the appointment is only temporary). Given his extensive track record of public statements about his business empire and policy preferences, environmental, labor, and diversity, equity and inclusion spending could be on the chopping block.

With Ramaswamy, plans are even less clear. In fact he posted on X that he was looking for ideas, writing that “DOGE will soon begin crowdsourcing examples of government waste, fraud … and abuse.”

Even fans of government efficiency have their doubts about how wise, and how likely, this all is.

Jennifer Pahlka, a senior fellow at the Niskanen Center and former President Barack Obama's Deputy Chief Technology Officer, lauded the project’s goal of making a sclerotic federal government more effective and responsive.

“If Elon comes to town and wants to do some work to tear down some of the crust that’s been built … I think that’s great, and I wish him luck and would be glad to help,” Pahlka told DFD.

She warned, however, that too blunt an approach could end up thwarting a major part of the commission’s goal — enabling a second Trump administration to effectively and efficiently carry out its policies.

“If they want to blow [the civil service] up … that’s a very bad idea,” said Pahlka.

Proposals are already swirling around the technocratic policy world for what DOGE might accomplish. The Foundation for American Innovation’s Dan Lips, Samuel Hammond and Thomas Hochman published a report in October titled “An Efficiency Agenda for the Executive Branch,” outlining how an incoming administration could eliminate “waste, fraud, and dysfunction” with the help of artificial intelligence tools and work already done by the Government Accountability Office.

Pahlka laid out a few straightforward principles for bureaucratic reform, saying “you need to be able to hire and retain the right people, which is going to require civil service reform, reduce their burdens and focus them on outcomes, which requires right-sizing procedures and cleaning up policy and regulatory crust, and to invest in digital and data infrastructure and close the loop between policy and implementation.”

Standing in the way of those lofty goals is what such a commission would actually look like, and how much buy-in it can expect from the federal government. When Obama formed the Bowles-Simpson National Commission on Fiscal Responsibility and Reform to tackle the national debt in the wake of the Great Recession, it featured eminences from the public and private sector, including sitting members of Congress. And crucially, per the 1972 Federal Advisory Committee Act, its meetings and minutes were subject to public scrutiny — none of which is likely congenial to figures like Musk and Ramaswamy, who are more used to going “founder mode” and making sweeping changes with the stroke of a pen (or keyboard).

Musk and Ramaswamy could ask for funding for the commission from Congress, most likely with a FACA waiver attached. If denied, they could fund the commission themselves. Even then, however, some who would otherwise be optimistic about a second Trump White House have expressed concern that Musk’s vast business entanglements could create conflicts of interest that would stand in the way of his stated mission to “send shockwaves through the system.”

“He bankrolled the president's campaign, and his companies are implicated in all sorts of regulatory regimes. The conflicts of interest are massive and egregious,” Sohrab Ahmari, an author and cofounder of Compact Magazine who recently wrote of a coming “power struggle” between competing power centers in the Trump administration, told DFD. He also argued that Musk should recuse himself from managing X to avoid its appearance as “a government organ.”

Niskanen’s Pahlka argued that DOGE might ultimately accomplish its goal more efficiently by getting closer to government, especially given the limited time frame Musk has granted himself to get its work done.

“He says he’s only here for six months, and they’re going to lose some of that time, ironically, to the bureaucracy that they’ll need to be able to do anything,” Pahlka said. “I’ve been a part of commissions … where you write these recommendations and then you send them in, so you’re one step removed from the mechanisms of actual change. Or often two or three steps.”

 

A message from CTIA:

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openai's infrastructure blueprint

OpenAI released a blueprint Wednesday that tells Washington how the company wants to get the compute and electrical power necessary to build the world’s most powerful AI models. Highlights of the five pillars include: opportunity zones with expedited permitting to build AI datacenters, a national electrical transmission highway to power those datacenters, government stepping in to stimulate private investment, a compact between U.S. allies to work on AI, and reinvigorating nuclear power.

Chris Lehane, OpenAI’s head of global policy, said AI infrastructure “transcends political partisan lines.” He spoke at the Center for Strategic and International Studies in Washington.

“I have spent time on the Hill, I know my colleagues … have spent a lot of time with folks from both sides, including folks in president-elect Trump’s circle, having conversations about the need for infrastructure,” Lehane said. “It’s going to serve as an incredible galvanizing force. I do think this is going to be one of the subject areas in the next Congress and the next administration that folks are going to want to work on, because the stakes are just so big.” — Mohar Chatterjee

 

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the guardian quits x

The United Kingdom newspaper The Guardian announced it would leave X over Elon Musk’s attempts to influence the 2024 U.S. presidential election, POLITICO’s Sam Clark reported.

“We think that the benefits of being on X are now outweighed by the negatives and that resources could be better used promoting our journalism elsewhere,” the paper said in a statement.

Musk responded on X: “They are a laboriously vile propaganda machine”.

The British paper leaves Musk’s platform after the mogul picked fights with new U.K. Labour Prime Minister Keir Starmer. POLITICO’s Esther Webber and Dan Bloom reported for Pro subscribers today that Starmer’s government snubbed Musk for an investment summit held in October in response. One Labour MP said Musk could cause a “giant distraction” from Britain’s overall tech policy efforts.

 

The lame duck session could reshape major policies before year's end. Get Inside Congress delivered daily to follow the final sprint of dealmaking on defense funding, AI regulation and disaster aid. Subscribe now.

 
 
TWEET OF THE DAY

Incredible read about how mobile gambling apps are ravaging Brazil. 20% of a recent social assistance program have been spent on gambling, with some bettors taking out credit at rates exceeding 400% https://bloomberg.com/news/features/2024-11-13/brazil-welfare-checks-help-fuel-gambling-spree-government-intervention?srnd=homepage-americas&sref=vuYGislZ

The Future in 5 links

Stay in touch with the whole team: Derek Robertson (drobertson@politico.com); Mohar Chatterjee (mchatterjee@politico.com); Steve Heuser ( sheuser@politico.com); Nate Robson (nrobson@politico.com); Daniella Cheslow (dcheslow@politico.com); and Christine Mui (cmui@politico.com).

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A message from CTIA:

5G is the fastest growing generation of wireless and Americans all over the country are using it to create the future and enhance America’s economic competitiveness. 5G is connecting kids to learning opportunities, fighting wildfires, making farms more sustainable, manufacturing smart, healthcare more accessible, driverless cars a reality, and bringing much needed competition and choice to home broadband. Thanks to these innovations, in the past two years demand for 5G data nearly doubled with experts projecting it will triple by 2027. But while demand continues to grow, the supply of spectrum to meet that demand stayed flat. Studies show we will need more than 400 MHz in the next three years to secure reliable 5G for all. To expand access, drive innovation, grow our economy and create jobs, America needs more 5G spectrum. Learn more at CTIA.org.

 
 

Policy change is coming—be the pro who saw it first. Access POLITICO Pro’s Issue Analysis series on what the transition means for agriculture, defense, health care, tech, and more. Strengthen your strategy.

 
 
 

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