Eleon Musk's sweeping cuts to US government agencies raised concerns that private companies – including – can earn billions in new contracts where public services are dismantled.
Musk, who played a strong role in the Trump administration, pledged to supervise the reducing the size of federal agencies, on the pretext that many should “delete”. However, while the discounts are framing as an efficiency campaign, they may end up transferring profit contracts to private companies-including Musk's Spacex and Starlink, which already has billions of dollars deals with the United States government.
The restructuring process comes at a time when Musk is pressing to adopt artificial intelligence in government operations and a full reform of American weapons programs – a region where private defense contractors yearn to intervene.
The private sector sees the opportunity
The cost -cutting schedule in Musk has already been praised by the Silicon Valley and Defense companies, which see an opportunity to expand their influence as external sources of government jobs are used.
Palantir, Data Analysis Company, which includes hundreds of millions in US military contracts, was particularly audio about changes. In a recent profit call, he praised the CTO SANKAR DOGE to bring “merit and transparency” to government operations, adding that it would eliminate wasted software projects.
“This is a revolution – some people will be behead,” said Alex Carb, CEO of Balnter. “We expect to see unexpected things and win.”
Cryptocurrency Exchang Coinbase also expressed her interest in combining Blockchain into government spending, while defense giants such as Lockheed Martin and Northrop Grumman welcomed Dog's efforts to accelerate military purchases.
Meanwhile, General Atomics Aernoutical Systems, which manufactures drones, wrote directly, and urged him to simplify the Pentagon's defense contracts.
Besides the enthusiasm of the private sector, the Musk companies will greatly acquire government operations.
His Spacex Space Company has already included itself in NASA operations, with more than $ 15 billion in contracts since the first federal deal in 2006.
The Pentagon and Trump Administration's increasing effect indicates that his business can get a greater share of government contracts where the volume of agencies is reduced.
Musk's increasing control of federal agencies has caused sharp criticism of government monitoring, who warn that they remove checks on corruption and self -dealing.
Trump has already weakened federal supervision, as he launched 18 general inspectors – responsible for investigating moral violations in government contracts. At the same time, Musk obtained free purchasing decisions, despite his personal financial interests.
“You do not need to be an ethics expert to see the tremendous problem here,” said Donald Sherman, CEO of citizens for responsibility and ethics in Washington. “The billionaire who finances the president's campaign and has its own governmental contracts is now responsible for determining who gets salaries.”
Crew joined other defense groups to file lawsuits against DOGE, on the pretext that they violate federal transparency laws. However, the judge has so far allowed Trump's restructuring and continuously.
Despite moral concerns, Trump has repeatedly rejected allegations that musk is offending his position. The White House insists that if Musk faces a conflict of interests, he will “excuse himself” from those decisions – a statement that only did a little to reassured critics.
It also allows him the role of the official government to hold a “private government employee” to avoid financial disclosure requirements, which means that the full range of his financial interests in government contracts is still hidden.
With the dismantled supervision mechanisms and private companies-including musk-unprecedented access to federal decisions, critics warn that the formation of the American government can have long-term consequences, and to transform power away from public institutions and to some companies. Giants.
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