Former President Donald Trump recently said he would tap billionaire Elon Musk to lead what would be — if he’s to win — a new government efficiency commission, an idea the Tesla and SpaceX CEO had previously suggested. This effort could, in turn, save consumers money, according to some experts.
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“I will create a Government Efficiency Commission tasked with conducting a complete financial and performance audit of the entire federal government and making recommendations for drastic reforms,” Trump said on Sept. 9 at the Economic Club of New York, according to a transcript of his remarks. “And Elon, because he’s not very busy, has agreed to head that task force.”
For his part, Musk has been a proponent of such an undertaking for quite some time, arguing during a two-hour-long live-streamed conversation with Trump on X (formerly Twitter) on Aug. 12 that inflation comes from “government overspending,” as GOBankingRates previously reported.
“Trump supports a government efficiency commission to allow great things to be done, Kamala does not. We will never reach Mars if Kamala wins,” Musk posted on X on Sept. 10.
Experts noted that the idea of a private individual overseeing government spending and waste is significant for many reasons — namely because this would involve the wealthiest person on earth analyzing the wealthiest economy in the world.
“It also implicitly criticizes the Government Accountability Office (GAO), a body established specifically to audit and investigate federal spending in a nonpartisan manner. It’s a grim assessment,” said Peter C. Earle, senior economist at American Institute for Economic Research.
On the other hand, other experts noted that this undertaking could also be beneficial to consumers. Here are several ways an efficiency commission could save you money, according to experts.
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It Could Reduce Waste, Putting Back Dollars in Americans’ Pockets
According to Richard Stern, director of federal budget policy at The Heritage Foundation, the federal government spends roughly $6.7 trillion annually and had $236 billion worth of known improper payments in fiscal year 2023 alone.
Stern further argued that the government has no market force holding it accountable the way that any business does, and as such, it has “horribly inefficient systems.”
“DoD [Department of Defense] alone has never completed an audit for example. So, there is tremendous room to bring in people who have experience creating accountable and efficient systems and going agency by agency, program by program to reform how these systems work,” Stern said.
He added that doing so would not only improve how the federal government interacts with the American people but would almost certainly find ways to reduce the level of waste, “allowing those funds to be returned to the hard-working Americans that earned that money in the first place!”
Other experts echoed the sentiment, such as Elaina Farnsworth, CEO of SkillFusion, who also argued that Musk’s ability to manage large-scale projects efficiently could significantly reduce waste within public works.
“In turn, this would ensure more prudent use of public funds and easing the tax burden on citizens,” she said.
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It Could Provide Better Public Services and Lower Costs
Meanwhile, other experts argued that another way Musk overseeing such an effort could save consumers money is the mere fact that he would apply the same principles that he’s applied to his companies such as “cutting through unnecessary red tape and streamlining services.”
“Think about how much easier it would be for people to access things like public services, without all the bureaucracy slowing them down,” said Robert Hodgins, founder of Sand Hill Road Technologies Fund, adding that it could save a lot of time and resources, which in the long run, might mean better service and lower costs for everyday things we rely on.
“Honestly, it feels like something that could benefit everyone across the board,” Hodgins said.
It Could Save Consumers Money Through the Use of Artificial Intelligence (AI) and Automation
At its core, Musk’s efficiency plan would likely hinge on technology and bold innovation, and his unique capacity to execute large-scale projects would make significant cost savings for consumers a tangible reality, according to Scott Dylan, founder, NexaTech Ventures.
“Love him or hate him, Musk has a proven track record of disrupting industries through innovation, whether it’s in electric vehicles, space exploration, or renewable energy,” said Dylan.
In turn, he argued that his approach to leading a government efficiency effort would likely involve leveraging cutting-edge technology and streamlining bureaucratic processes through automation and data-driven decision-making.
For instance, one area where Musk could dramatically improve government efficiency–and save consumers money–would be through the use of AI and automation.
“The U.S. government spends billions annually on administrative overhead and processes that could be significantly optimized with AI tools,” said Dylan. “This would not only speed up decision-making but also cut down on errors and redundancies, resulting in significant savings that could, in turn, reduce the tax burden on individuals.”
Trickle-Down Savings From Looser Regulations
While the proposal is pretty light on details so far, savings for consumers through a cheaper and ostensibly more efficient government would likely take the form of one of two things, said Chris Motola, National Business Capital special projects editor.
“Tax cuts tied to operational savings from cutting federal departments and jobs. And supply-side/trickle-down savings passed down to consumers from corporate tax cuts and looser regulations,” Motola said.
As Motola noted, Musk, for example, has proposed creating a mechanism that would automatically sunset regulations that aren’t functioning as intended or have outlived their usefulness.
In theory, as businesses will face a less costly regulatory and tax environment if the size of government is reduced, these savings will be passed along to the consumer in the form of lower prices on goods, services and public works.
For instance, Motola said, Musk’s California high-speed rail project had an original budget of $33 billion when it was proposed in 2008.
“It’s about $100 billion over budget and behind schedule, with regulations and environmental reviews partly to blame,” he added.
Other ways this effort could provide savings for consumers include the fact that Musk’s emphasis on clean energy might drive efforts to cut waste in government buildings and transportation systems, potentially saving billions in energy costs over time, said Cliff Ambrose, FRC, founder and financial advisor at Apex Wealth.
Ultimately, he said, these savings could trickle down to taxpayers in the form of reduced taxes or better-funded public services, giving everyday consumers a financial break.
“While the specifics remain vague, the potential for cost savings is significant if Musk’s efficiency tactics are applied across the federal landscape,” he added.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: Trump Wants Musk To Lead Government Efficiency Effort — 4 Ways It Could Save You Money