Elon Musk and Trump: Alliance raises oligarchy fears
The alliance between Elon Musk and Donald Trump, the world's richest person and the future president of the world's most powerful country, poses the risk of creating a dangerous oligarchy. Their personalities threaten a "tumultuous psychodrama with global ramifications," according to "The Economist."
On election night, Trump, while announcing his victory, devoted 17% of his speech to praising Musk as a "super genius" who took time away from his many ventures to support the campaign. The future president also announced that his Make America Great Again (MAGA) movement has a new star—Elon Musk.
The British weekly estimates, based on currently available data, that Musk spent about $200 million to support Trump's candidacy. This is a colossal sum, considering that the declared expenditures so far by his campaign staff and external groups amount to about $1.1 billion.
If things go wrong, Mr Musk may suffer dire consequences, predicts "The Economist."
Since the presidential election, Tesla's market capitalization, which accounts for two-thirds of Musk's wealth, has increased by $300 billion. This amount is more than twice the market value of General Motors, Ford, and Stellantis combined.
Entrusting Musk with the mission of overseeing and cutting expenditures in the American administration could create a new problem in the USA—a kind of "corrupt oligarchy." "The Economist" calculated that 10% of Musk's personal fortune, worth $360 billion, comes from government contracts. Close contacts with the president may allow him to influence regulations governing his businesses, secure government contracts, and bypass tariffs, which will be very costly for competitors.
The collaboration between Musk and Trump may also "normalize collusion between politicians and tycoons," warned the weekly.
Uncle of the first family of the USA
The status of "first buddy" and "uncle Elon," which Musk enjoys at Mar-a-Lago, Trump's residence, also carries political risks. The billionaire has been involved in appointing positions in the new administration and engaging in freelance diplomacy.
Attempts to take a stance or shape policy in foreign relations are beyond Musk's mandate and competence. This is particularly dangerous as, being merely an advisor, he is not subject to the rules and ethical codes applicable to federal administration employees, assessed "The Economist."
In U.S. history, there is no precedent comparable to the influence the billionaire has over Trump, and known cases of close alliances between presidents and business magnates have ended in conflict, summarized the weekly.
