By Nick Catoggio
Wednesday, June 04, 2025
At The Dispatch we’re all about owning up
to our mistakes. So I’ll own up to one of mine.
In December, Elon Musk turned Congress upside down by manically
denouncing a government funding bill that was poised
to pass the Republican House. Across dozens of tweets, he condemned the legislation as “criminal,” lied
flagrantly about what it would do, and warned that any GOP member who voted for
it deserved to be ousted in their next election.
When the richest man in history starts musing about
primarying lawmakers who cross him, those lawmakers listen. Republican support
for the bill collapsed almost instantly, killing the version of it that had
offended Musk. Even Donald Trump seemed caught off guard by the populist
groundswell that Elon instigated: Reportedly he had
no objection to the legislation until Musk raised a
stink, whereupon the president-elect hastily declared that he too now opposed
it.
Enjoy watching Elon bully Republicans into pretending
that they care about spending, I wrote on
December 20, because it’ll never happen again. “Musk may sincerely prefer a
more fiscally responsible government in principle,” I argued, “but he isn’t
going to risk alienating a gigantic chunk of his social media following by
going to war with Trump over it.”
Oops. On Tuesday, Elon went to war.
“I’m sorry, but I just can’t stand it anymore,” he tweeted about the Big, Beautiful Bill that passed
the House last month. “This massive, outrageous,
pork-filled congressional spending bill is a disgusting abomination. Shame on
those who voted for it: You know you did wrong. You know it.” A few weeks ago
Musk told an audience in Qatar that he planned to reduce or even
end his spending on politics going forward, but
yesterday he hinted at a change of plans. “In November next year, we fire all
politicians who betrayed the American people,” he warned, replying
to another user’s complaint about the GOP.
The American right in the age of Trump is a faction that
governs by intimidation. Elon Musk is the only person in the United States
besides the president himself who, by dint of his fortune and his enormous
following, can credibly intimidate Republican lawmakers. And here he was,
leaning into it.
His intervention came in the nick of time for fiscal
conservatives in Congress who are under pressure
from Trump to back the bill despite their misgivings.
Libertarians Rand
Paul and Thomas Massie,
both recent targets of presidential tantrums,
tweeted their support for Elon’s position. Meanwhile, a White House official
described the reaction to Elon’s about-face in the West Wing to Politico as “perplexed, unenthused, and disappointed.” Speaker Mike
Johnson went as far as to accuse the Tesla CEO of being privately aggrieved that the bill will
end tax credits for electric vehicles and pretending to oppose it for more
principled reasons.
Until yesterday there was zero chance that cowardly
congressional Republicans would defy the president by tanking his big,
beautiful fiscal disaster. Now that Musk has offered them populist cover to do
so, the chances aren’t high—but they’re no longer zero. It was inevitable that
two egos as malign and grandiose as his and Trump’s would clash, but I never
imagined Elon might try to sabotage the one piece of congressional legislation
that the president cares about, the centerpiece of his economic agenda.
Why is Musk doing this?
Elon’s legacy.
“It’s because he cares deeply about budget deficits,” you
might say.
Does he? Then why did he misidentify “pork” as a key
problem with the bill in his tweet yesterday?
Neither pork nor “waste, fraud, and abuse,” the other
perennial scapegoat of pretend fiscal hawks, are the cause of unsustainable
federal spending. Politicians gripe about them because they’re unpopular, and
because doing so feeds the useful illusion that deficits are driven by massive
public corruption. Greedy lawmakers are funding unnecessary projects in
their home states and districts, greedy bureaucrats are padding their budgets
with unnecessary expenditures, and greedy taxpayers are applying for benefits
that they’re not eligible to receive.
It’s a perfect populist narrative, reducing a complex
policy dilemma to a simple morality tale. Crack down on the evildoers who are
fleecing the people—drain the swamp, to borrow a phrase—and the problem will
melt away.
It’s childish idiocy. Entitlement spending and the
interest we pay on the debt we’ve incurred to sustain it are the main drivers
of annual deficits, not pork. Republicans can’t balance the budget, and Elon
Musk couldn’t make meaningful cuts at DOGE, because spending on programs like
Medicare and Social Security is so popular that to slash them would amount to
political suicide. Trump’s big, beautiful bill not only fails to address that
problem, it piles additional annual deficits on top of it. That’s what actually
makes it “a disgusting abomination.”
The strange thing is that neither Elon nor the president
seem to have understood this as of January 20. If they did, one assumes, they
wouldn’t have set their target for spending cuts as preposterously high as $2
trillion, dooming themselves not just to fail but to fail miserably. Last
week the Wall
Street Journal claimed that Trump had recently
posed a question to his advisers about Musk’s lost ambition to cut trillions
from the federal budget. “Was it all bullsh-t?” he wondered, innocent as a
child.
Of course it was bullsh-t. But if you’re a sucker
for populist morality tales, deeply ignorant of how the budget works, and fully
bought in on the myth of Elon Musk as some sort of wizard whose ingenuity and
strength of will can somehow alter the laws of basic math, you might earnestly
have believed that $2 trillion was doable. It seems Musk and Trump are, or
were, two such suckers.
In the end, Elon ended up more
than 90 percent shy of his target. Some of Trump’s own cronies, from Steve Bannon to Treasury
Secretary Scott Bessent, have taunted him about it. He’s leaving government
less
popular than he used to be, with his flagship business
in
trouble, dogged by embarrassing
headlines about his embarrassing
habits (allegedly!), and with nothing much to show for
it policy-wise except the needless
death and suffering of a lot of people in the third world.
Even his colleagues in the West Wing are glad to see him
go. “Musk’s decision to [leave the administration] has been greeted as a relief
by many federal leaders, who have been busily undoing many of his cuts in their
departments or making DOGE-style changes on their own terms,” The
Atlantic reported last month. “I think that
everyone is ready to move on from this part of the administration,” one Trump
adviser grumbled to the magazine.
Tanking the Big, Beautiful Bill is Elon’s last chance to
change his legacy and leave a mark on federal spending. He may not care about
(or even understand) the ins and outs of the budget, but he surely grasps that
his time in government represents a
glaring failure for one of the more successful people
who’s ever lived. Watching Republicans tack on another $2.4
trillion in deficits over the next decade as he heads
for the exit may have felt like a parting indignity to a man who normally
prides himself on being able to impose his will on organizations.
If he couldn’t bend the GOP to his priorities as a member
of the administration, he may have concluded, he’ll use his social influence to
do it by attacking the bill as an outsider.
Somehow we’ve ended up with an unlikely simulacrum of
2015-era Republican politics. The GOP establishment is pushing massive
deficits by pairing steep tax cuts with not-so-steep spending cuts while a
faction of populist “conservatarians” flogs them for not doing nearly enough on
spending to balance the books. It’s just that instead of John Boehner and Paul
Ryan fending off the Freedom Caucus, this time it’s Donald Trump and Mike
Johnson fending off Elon Musk. Wasn’t populism supposed to be … different?
First as tragedy, then as farce: Just as all crustaceans
eventually evolve
into crabs, perhaps all right-wing movements eventually evolve into
sellouts and purists squabbling noisily over minor cuts to discretionary
spending that ultimately do nothing to reduce America’s debt burden.
Butthurt.
If that theory of Musk’s behavior is too cerebral for
you, though, here’s one that’s more venal: Maybe Mike Johnson was right.
The speaker wasn’t the only person who speculated on
Tuesday that Elon was butthurt about the House GOP ending tax credits for
electric vehicles. “Butthurt” was the word chosen by a source who spoke to Axios,
which identified four separate grievances Musk allegedly had with Republicans
in recent months. His choice to lead NASA was nixed, his Starlink system wasn’t
picked up by the FAA to aid with air-traffic control, and his tenure as a
“special government employee” at DOGE wasn’t extended. But the tax credits were
a special snub inasmuch as Elon had put money behind his request: “As of late
April, [Tesla] had spent at least $240,000 lobbying on behalf of the credit and
other company matters. Behind the scenes, sources say, Musk also advocated for
the measure in the legislation, but to no avail.”
A Republican “close to the White House” echoed that point
to Politico.
“When businessmen criticize legislation, journalists don’t take them at their
word, they look at how the legislation would impact their business interests,”
he said. “They should be doing that in this case.” Another Republican derided
Musk to Punchbowl
News as “the guy that was pro the package until he
realized he wasn’t going to get his way with the EV tax credits.”
I’m not sure I buy it. Less than six months ago, Elon was
telling reporters that he wanted to get rid of the credits—and not just
for high-minded, revenue-raising fiscal reasons. He believed that Tesla, a
household name, might gain
an advantage over fledgling competitors if buying an
electric vehicle suddenly became more expensive. After all, the greater the
financial risk of making a purchase, the more inclined customers might be to
stick with established brands.
Accusing Musk of being “butthurt” because it might now
take him slightly longer to become the world’s first trillionaire smells like a
convenient smear by Trump toadies to discredit his opposition to the bill as
financially motivated. But I must confess: Although I don’t fully believe it, I
kind of want to.
For two reasons. First, nothing would be more classically
Republican than for a populist to disguise his true grievances as principled
objections to runaway spending. The ease with which small-government Tea Party
conservatives transformed into bootlicking Trumpist authoritarians suggests
that, whatever was really motivating the backlash on the right to Barack
Obama’s administration, it sure wasn’t “constitutionalism” or earnest concerns
about deficits. Populist budgetary concerns reliably evaporate the instant a
Republican takes the oath of office on January 20. Why shouldn’t Elon be
similarly insincere, laughably complaining about “pork” while nursing a grudge
over the EV credits he didn’t receive?
The second reason is as close as I’ll ever get to earnest
sympathy for Musk. How is it, exactly, that an administration willing to do
lavish political favors for every lout who’s ever said a kind word about Trump
was unwilling to cut a break for the person who did
more than any other last year to get him reelected?
The whole point of Trump 2.0 is to reward
the president’s friends and punish his enemies. No one, including violent
criminals, is too unsavory to receive a life-changing favor from the White
House. “No MAGA left behind,” as “Eagle Ed” Martin put it, summarizing the corrupt logic behind Trump’s patronage.
Somehow Elon Musk, one of the most popular and
influential figures in the Republican Party, got left behind on a legislative
request that was important to him.
One could understand stiffing him on the EV credits if
the Big, Beautiful Bill was an earnest attempt to cut spending. Getting serious
about balancing the budget means cracking down on special interests; if
American retirees have to make do with fewer benefits in their old age, it’s
only fair that Tesla fans have to pay a little more for their Cybertrucks.
Austerity should be a shared burden.
But the bill isn’t earnest. It’s a sham, a “disgusting
abomination” just like Musk said—and somehow he still got stiffed by his
friends Donald Trump and Mike Johnson. If the GOP insists on running massive
deficits for years to come, why not make them a tiny bit more massive by
helping Tesla customers out? Why, it’s downright insulting that they didn’t.
And it’s almost certainly in bad faith. The most amazing
detail in the reporting about Elon’s long farewell from the Trump
administration is how many times his requests were denied due to (deep breath) ethical
concerns. Per Axios,
when he asked to stay on at DOGE beyond the 130 days allowed by statute, he was
apparently told—by Donald Trump’s deputies—that rules are rules. His proposal
to foist Starlink on the FAA was rejected in part because of “the appearance of
a conflict of interest,” of all things.
When news broke in April that Musk was set to receive a
Pentagon briefing about China, Trump himself allegedly complained on ethical
grounds. “He said Musk getting the briefing was a conflict of interest,” two
administration officials told the Wall
Street Journal. “Trump told aides that Musk, who has space contracts,
shouldn’t be working at the Pentagon.” How jarring it must have been for the
president to experience a feeling as unfamiliar as a pang of conscience.
Imagine being Elon Musk, watching the many pigs around
you feeding
noisily from the trough, and being told repeatedly that your comparatively
minor corruption offends the administration’s sense of propriety. No wonder
he’s butthurt.
Go figure that when an opportunity
arose to push the plunger on the lousy bill that the White House has its heart set on,
Elon couldn’t resist.
Two questions.
As congressional Republicans scramble to meet Trump’s deadline
of July 4 for final passage of the bill, what happens
between now and then will answer two important questions about Musk and his
political future.
First, what were his motives here? If the House and
Senate GOP appease him by restoring EV credits to the legislation and he drops
his objections, we’ll know definitively that his “principled” opposition to the
bill was simply a negotiating tactic. More so than ever before, bribery is how
Republicans conduct political business now. Greasing
Elon’s palm might lead him to back off.
But what if it doesn’t? In that case, we come to the
second question: Just how much influence over the populist right does a
diminished Elon Musk have?
Not much, I’d guess—or at least not much in a pure test
of political strength with Donald Trump, especially where defeat for the
president would mean being humiliated by his own party on his biggest (i.e.
only) legislative priority. If the grassroots right cared about spending on the
merits, Elon would stand a chance. But it doesn’t, as I explained earlier, so a
prolonged Trump-Musk standoff would boil down to what every right-wing “policy”
disagreement eventually boils down to now: Are you on the president’s side
or the enemy’s?
If Elon were to beat the odds and win that standoff, it
might alter the trajectory of the GOP. He’d become the first and only person to
have challenged Trump from the right and won, a feat that heir apparent J.D.
Vance could never manage. Musk’s political strength would be greater than ever
and the long-term prospects of populist welfare-state-ism advancing on the
right would be
in doubt.
But even if Elon loses, as everyone expects, he’ll end up
more powerful than he was before. There’s no shame in losing a test of strength
with Trump on the right, after all, and meanwhile he’ll have reminded
congressional Republicans in a stark way that he’s prepared to ride herd on
them after the president finally leaves politics. Once Trump is gone, the
biggest private fortune ever assembled by a human being will be available to
punish GOPers who resist Musk’s policy priorities. That he dared to challenge
Trump at a moment as fraught as this one will show them that he’s not to be
trifled with, in fact.
Not bad for a guy who’s supposedly leaving Washington
with his “tail
between his legs.” The king is dead; long live the king.
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