The ultimate corporate corruption: Trump appoints Musk to oversee US regulations

Examining the implications of Musk’s appointment to lead Trump’s new department of Government Efficiency and what It means for American democracy.

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Image credit: James Duncan Davidson

Elon Musk, the world’s richest man and a significant donor to President-elect Donald Trump’s campaign, is now set to co-lead the newly announced Department of Government Efficiency. This unprecedented move aims to dismantle federal regulations and achieve what Trump has promised will be the “ultimate overhaul” of federal spending. The department, also led by biotech billionaire Vivek Ramaswamy, has the explicit mission to slash government budgets, remove regulatory “barriers,” and streamline federal agencies—an agenda that aligns closely with corporate interests.

Musk’s involvement in the administration marks a historic shift toward corporate influence within the highest levels of government, as he takes charge of a program that will operate outside traditional government frameworks and without direct Congressional oversight. As the Department of Government Efficiency takes shape, its goals and Musk’s financial interests in sectors facing regulatory scrutiny cast an unprecedented spotlight on corporate power over U.S. policy.

President-elect Trump’s Department of Government Efficiency, which he touts as a revolutionary approach to reforming government bureaucracy, has broad and ambitious goals. As Trump has outlined, the department’s primary purpose is to identify and eliminate what he deems “wasteful expenditures” and burdensome regulations in federal agencies. The commission is described as an independent advisory group, set to operate in conjunction with the White House and the Office of Management and Budget (OMB).

Trump stated that the department “will provide advice and guidance from outside of Government and partner with the White House to drive large-scale structural reform and create an entrepreneurial approach to Government never seen before.” While promising a $2 trillion budget cut—an amount nearly double the entire discretionary federal budget—the administration has not clarified the precise areas where these cuts will be made or how such savings will be achieved without impacting essential public services.

Elon Musk’s multiple business interests place him in a uniquely conflicted position within this new role. As CEO of Tesla, SpaceX, and owner of X (formerly Twitter), Musk oversees companies with a direct stake in federal regulatory policies. Notably, Musk’s companies are already under scrutiny by at least nine federal agencies for alleged misconduct, including labor violations and environmental concerns.

Critics highlight the ethical implications of Musk’s appointment, with Lisa Gilbert, co-president of the consumer rights organization Public Citizen, calling it “the ultimate corporate corruption.” Gilbert emphasized, “Musk not only knows nothing about government efficiency and regulation, his own businesses have regularly run afoul of the very rules he will be in a position to attack in his new ‘czar’ position.” The risks of allowing a corporate tycoon to dismantle regulations that directly impact his companies are clear, particularly as Musk himself has advocated for the removal of what he terms “smothering regulations.”

Federal regulations serve critical functions that protect public health, worker rights, and the environment. However, the stated goals of Musk and Ramaswamy include extensive cuts across various sectors, likely impacting essential protections. During a recent rally, Musk declared, “Your money is being wasted and the Department of Government Efficiency is going to fix that. We’re going to get the government off your back and out of your pocketbook.”

Public Citizen and other progressive advocacy groups argue that these proposed “efficiency” measures are likely to eliminate regulations that safeguard American communities. Environmental and labor regulations, for instance, are designed to protect vulnerable populations from corporate negligence and environmental hazards. Cutting such regulations, they warn, would prioritize corporate profits over 

public safety, likely leading to a rollback of vital protections for workers, the environment, and public health. Lisa Gilbert stressed that “cutting red tape” is often a euphemism for dismantling safeguards that protect everyday Americans. “Our problem is corporate capture of so much of our public policy, not this lie that corporations are held back by too many rules,” she added.

“Maximum transparency” or public relations move?

Amid mounting concerns, Musk promised “maximum transparency,” stating that all actions of the Department of Government Efficiency will be posted online and that the public will have the chance to weigh in on government spending. Musk also pledged to create a “leaderboard for most insanely dumb spending of your tax dollars,” which he described as both “tragic and entertaining.” But transparency advocates argue that this promise may amount to little more than a public relations tactic, particularly if real public oversight remains limited.

While Musk’s announcement gained attention, questions remain about the department’s transparency practices. Ralph Nader, the longtime consumer advocate, expressed skepticism, warning, “Get ready this January for chaos, revenge, greed, rampant abuses of power, and the unbridled control of corrupt plutocrats and oligarchs—with Elon Musk in the lead.”

The broad mandate of the Department of Government Efficiency has drawn attention from policymakers and analysts who warn that such an agency could devastate federal departments that provide essential services to the public. Agencies like the Environmental Protection Agency (EPA) and Occupational Safety and Health Administration (OSHA), which oversee public health, safety, and environmental standards, are expected to face severe budget cuts.

According to equities analyst Daniel Ives, the department’s formation “continues to be a ‘poker move for the ages’ by Musk betting on Trump,” suggesting that the billionaire’s ties to the administration will likely lead to favorable conditions for his ventures, including AI and cryptocurrency. Experts caution that Musk’s significant influence could lead to a reduction in funding and enforcement for regulatory bodies, potentially allowing corporate actors to operate with fewer constraints.

This move by the Trump administration has prompted pushback from across the political and social spectrum. A recent survey conducted by NationofChange revealed that readers are highly concerned with corporate influence in politics and the erosion of public accountability in government decisions. Many respondents noted the need for greater protection of environmental and labor standards, voicing concern over the long-term consequences of unchecked corporate power.

One reader summarized the sentiment, expressing worry that “big business is taking over public interests and sidelining the needs of real people.” This feedback highlights the fears of Americans who see Trump’s appointment of Musk as a departure from democratic principles, reinforcing corporate capture rather than holding powerful figures accountable.

The appointment of Musk follows a pattern in Trump’s political career of positioning corporate allies within his administration. Critics argue that Trump’s decision to place billionaires like Musk and Ramaswamy in positions of regulatory oversight reflects an agenda that privileges wealthy elites over working Americans. During his first administration, Trump similarly promoted figures from industries affected by federal regulations into leadership roles, often weakening the enforcement capabilities of those very agencies.

As the president-elect continues to stack his team with corporate executives and wealthy allies, civil society groups and progressive organizations argue that this trajectory endangers fundamental democratic principles. “There’s little doubt now that Trump’s government aims to serve regular people or the billionaires,” Public Citizen’s Lisa Gilbert asserted. “They should now be resolved.”

The Department of Government Efficiency’s mission to radically cut spending and regulations comes as the U.S. grapples with pressing issues that require strong regulatory frameworks, such as climate change, labor rights, and public health. By putting figures with vested financial interests in charge, the Trump administration has signaled a shift toward a government that functions as a corporate enabler rather than as a guardian of public welfare.

Civil society advocates are now calling on Congress and state leaders to counterbalance what they describe as “the ultimate corporate capture” of U.S. democracy. As Public Citizen’s Lisa Gilbert warned, “We all depend on these regulations to protect our air, water, workers, children’s safety, and so much more.”

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