Elon Musk, a very famous billionaire known for companies like Tesla and SpaceX, recently finished his time working for the government in Washington D.C.. He was a special advisor to President Donald Trump and led a group called the “Department of Government Efficiency,” or “Doge” for short (named after a popular internet dog meme!).
Musk promised to make the government more efficient and save trillions of dollars by cutting waste. He even showed up at a big meeting holding a chainsaw, saying he was going to make deep cuts.
What Did Doge Do?
Doge claimed to have cut about $140 billion from the budget. However, some of their claims had errors, and a new tax bill signed by President Trump is expected to add even more money to the national debt, wiping out any savings Doge might have made.
Instead of making things more efficient, Doge ended up cutting many government services and humanitarian aid programs. For example, they cut funding for the National Oceanic and Atmospheric Organization (NOAA), which helps with weather and natural disaster forecasting, and caused problems for the Department of Veterans Affairs. They also shut down smaller agencies, like one that helped with homelessness.
One big impact was on USAid, which helps people around the world. About 83% of USAid programs were canceled, affecting things like disease prevention and HIV/AIDS response. Experts are worried that losing so many experienced people will make Americans sicker and cost a lot of money to fix in the future.
Challenges for Musk’s Businesses
While Musk was in Washington, his political involvement caused some problems for his own companies.
- Tesla: Sales of his electric cars dropped a lot, especially in Europe. Some people think this is because of Musk’s connection to right-wing politics. Tesla is also trying to launch driverless taxis, which is a big test.
- X (formerly Twitter): Many advertisers stopped using his social media platform after he bought it. While some are returning, they’re spending less than before.
- SpaceX: His rocket company has had some recent setbacks with explosions of its Starship rockets. However, investors seem to be excited about SpaceX’s financial future. SpaceX could also get billions of dollars in new government contracts.
- Starlink: This satellite internet company has been making deals in other countries, but it’s not clear if these deals will continue without Musk being close to the government.
What’s Next?
Even though Musk has left his government role, some of the people he hired for Doge are still working in the government. These people had access to a lot of sensitive government information. Russ Vought, a Christian nationalist, is taking over as the head of Doge.
Musk says he is leaving Washington to focus on his tech companies, and he plans to reduce his political spending. He complained that fixing things in Washington is a “uphill battle.”
It remains to be seen if Musk’s promise to make the government more efficient will ever come true. As one former government employee said, “it’s just so much easier to tear things down than it is to build things up.”
This article is based on the following articles:
https://www.theguardian.com/technology/2025/may/29/elon-musk-trump-doge-adviser-exit
https://www.nytimes.com/2025/05/29/us/politics/musk-washington-efficiency-departure.html
Background Information
Who is Elon Musk?
Elon Musk is a very famous and wealthy businessman. He’s known for starting and leading several big companies that focus on technology and innovation. Some of his most well-known companies include:
- Tesla: This company makes electric cars. Electric cars run on electricity instead of gasoline, which is better for the environment.
- SpaceX: This company designs, manufactures, and launches rockets and spacecraft. Their goal is to make space travel more affordable and to eventually help humans live on other planets, like Mars.
- X (formerly Twitter): This is a social media platform where people can share short messages, photos, and videos.
What is the “Department of Government Efficiency” (Doge)?
When Elon Musk started working for President Trump, he led a new group called the “Department of Government Efficiency,” or “Doge.” The name “Doge” comes from a popular internet meme featuring a Shiba Inu dog. The idea behind Doge was to find ways to save money in the government by cutting out waste and making things work better. Musk talked about saving a lot of money, even trillions of dollars.
What is a “Billionaire?”
A billionaire is a person who has at least one billion units of a country’s currency, like a billion U.S. dollars. That’s a huge amount of money! To give you an idea, $1 billion is $1,000,000,000. It’s enough money to buy many, many things.
What is “Washington D.C.?”
Washington D.C. is the capital city of the United States. This means it’s where the main offices of the U.S. government are located. The President lives and works there, and many important government agencies have their headquarters in Washington D.C. So, when the article says Elon Musk was “in Washington,” it means he was working closely with the federal government.
What is a “Presidential Advisor?”
A presidential advisor is someone who gives advice and guidance to the President. They might help the President make decisions about different topics, from the economy to national security. Elon Musk’s role was specifically a “senior adviser” to the President and the “de facto head” of Doge. “De facto” means he was acting as the head, even if that wasn’t his official title.
What is “Government Efficiency?”
“Government efficiency” means trying to make the government work better and with less waste. This can involve finding ways to save money, improving how services are delivered to people, and making sure that government agencies are doing their jobs effectively. Musk’s goal was to root out “rampant waste and fraud” and “modernize how federal agencies operate.”
What are “Government Agencies?”
Government agencies are organizations within the government that are responsible for specific tasks. For example, the articles mention:
- National Oceanic and Atmospheric Organization (NOAA): This agency focuses on understanding and predicting changes in Earth’s environment, including weather and natural disaster forecasting.
- Department of Veterans Affairs (VA): This department provides healthcare and other services to military veterans.
- USAid: This is an agency that provides humanitarian assistance and development aid to countries around the world.
- Social Security Administration: This agency manages Social Security, which provides benefits to retired people, people with disabilities, and survivors of deceased workers.
- Federal Aviation Administration (FAA): This agency regulates and oversees all aspects of American civil aviation.
What are “Shareholders?”
When a company is publicly owned, it’s divided into small pieces called “shares.” People who own these shares are called “shareholders.” Shareholders are like part-owners of the company. They are interested in how the company is doing financially because it affects the value of their shares. The article mentions that Musk faced “backlash from the public and shareholders”, meaning that some people who own parts of his companies were unhappy with his actions in government.
What is a “Budget” and “Deficit?”
- Budget: A budget is a plan for how money will be spent and how it will be earned. The government has a budget that outlines how much money it expects to collect (mostly through taxes) and how much it plans to spend on various programs and services.
- Deficit: A deficit happens when a government spends more money than it takes in during a certain period. The articles mention that a new tax bill “is also expected to add $2.3tn to the deficit”, which means the government will be spending much more than it collects in taxes.
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