Elon Musk said this weekend that the cost-cutting efforts of the Department of Government Efficiency (DOGE) could curb inflation.
Musk spoke at a town hall event in Wisconsin on Sunday ahead of a key state supreme court election on Tuesday. In his remarks, he touted DOGE’s efforts and said he views the spending cuts as helping slow the pace of price growth.
“At least for some period of time, we’re going to make sure that your taxpayer money is spent at least 15% better,” Musk said. “I think it’s a reasonable goal. It’s a rational goal. It’s a sensible goal.”
“And the net result, I should say, if we have the combination of a $1 trillion increase in the economic output and $1 trillion decrease in the budget deficit, then the outcome should be that there is no inflation or very little inflation,” Musk added.
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Musk went on to say that given his expectation that DOGE’s efforts will reduce inflation, consumers should see prices for key goods as being relatively stable through the end of next year.
“So at the end of next year, the prices will be – at the grocery store – will be very similar to what they are right now. Which means that, you know, the standard of living will actually probably be higher, a little bit higher,” he explained. “Whereas we’ve had rampant inflation to date, and inflation is really just a pernicious tax that has been used by governments throughout history.”
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The billionaire DOGE leader added that inflation is caused by government policies and functions like an indirect tax on consumers.
“It’s very tempting for governments to use inflation as a tax because it’s indirect,” Musk said. “People see the prices rising at the grocery store or for goods and services or for houses, and they tend to like, blame the store. But it’s not the store, it’s the government. The government has reduced the value of money, and as a result, prices rise.”
Musk also discussed how he views DOGE’s efforts at shifting workers from the government to private sector roles as contributing to increasing economic output and, in turn, boosting living standards.
“By reducing waste and fraud, it will essentially make the economy more efficient and will shift people resources from the government to the private sector. And that will result in an increase in the output of goods and services, and so the average standard of living will therefore rise,” Musk said.
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