Elon Musk is at it again. The world's richest man took a break from his usual Twitter activities—posting memes and fighting with journalists—to declare Trump's spending bill an "abomination" that will balloon the federal deficit.
The irony is... thick.
This is the same Elon Musk whose companies have feasted on government subsidies and contracts for years. Tesla benefited from billions in electric vehicle tax credits. SpaceX's business model? Government contracts worth, oh, just tens of billions of dollars. But hey, who's counting?
I've been covering Musk since his PayPal days, and there's always been this fascinating contradiction between his libertarian-leaning rhetoric and his companies' reliance on public funds. It's a bit like watching someone criticize restaurant food while going back for thirds.
Look, he's not wrong about the deficit. Trump's spending package represents a remarkable departure from the fiscal conservatism Republicans once claimed to champion. Remember when the GOP shutdown the government over budget concerns during the Obama years? Funny how those principles evaporated.
The spending bill pumps money into defense (which Musk's companies might benefit from, by the way) while making little effort to address long-term fiscal challenges. It's the kind of budget that would've given Paul Ryan heart palpitations back in 2012.
What's particularly striking about Musk's criticism is its timing. Why now? Political calculations, perhaps. Musk has increasingly aligned himself with Republican positions, but selectively. He picks his spots. This might be an attempt to position himself as the "responsible" voice in Trump's ear.
"The spending package is truly an abomination," Musk wrote on his platform X. "Our deficit is completely out of control."
(That's the same deficit that helped fund the electric vehicle revolution that made him billions, but whatever.)
Financial markets haven't reacted much to either the spending bill or Musk's comments. Bond yields remained relatively stable, suggesting investors aren't particularly concerned about immediate fiscal disaster. They've heard this song before.
I spoke with several economists who pointed out that while deficits eventually matter, the U.S. has advantages most countries don't—namely, the world's reserve currency and unmatched borrowing capacity. Still, there are limits.
"At some point, the bill comes due," explained Janet Morrison, chief economist at Westfield Capital. "But that point might be further out than traditional models suggest."
This whole episode highlights the strange new world of Republican economic policy under Trump. Gone are the days of fiscal hawks and balanced budget amendments. In their place? A weird hybrid of tax cuts, increased spending, and rhetoric about growth solving everything. It's trickle-down economics with a populist veneer.
And Musk? He gets to have it both ways—criticizing government spending while his companies continue to benefit from it. Must be nice.
The whole thing reminds me of a conversation I had with a senior Republican staffer back in 2018. "The deficit only matters when Democrats are in charge," he told me, after his third bourbon. "It's all theater."
Looks like Musk has decided to join the show.
