Can Elon Musk Fix Washington's Spending Problem? | The Money Runner

In this episode of The Money Runner, host David Nelson dives into the economic realities facing the U.S. as the election approaches. With a ballooning federal debt and interest payments projected to skyrocket it's clear the present course in unsustainable. David examines how SpaceX founder Elon Musk might play a role in making Washington more efficient.

Disclosure: "At the time of this article I currently hold shares in some of the companies mentioned as part of investment portfolios in funds I manage for Belpointe. Additionally, I may discuss other securities that are under consideration for future investment; however, discussing these securities is not a recommendation to buy, sell, or hold. My mention of these securities reflects my personal opinion and analysis at this moment and may change without notice. Please remember that all investments involve risks, including the possible loss of principal."

Transcript

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In less than a week, we're going to have a new administration or a continuation of what we've had over the last four years. Look, we all come at this with our own political viewpoint, but let me give you my take. As a money runner concerned about a ballooning government that believes more federal spending is the answer to everything. Growth solves a lot of problems. So I'm interested in solutions that grow the pie, not how to divide up the pie differently. Now, both sides are making a lot of promises. It's an election, I get it. But the truth is that neither Trump or Harris will be able to keep all the promises they've made. However, there is one hard, inescapable truth the United States has a spending problem. The interest we are paying on our debt is going parabolic. And if we don't do something about it over the next ten years, we will be paying close to 13 trillion in interest, and that's obviously unsustainable. HARRIS believes she can tax her way out. Trump wants to grow his way out. Let me give you my take. Capital is portable and it moves to wherever it is treated best. You raise corporate taxes and two things will happen. First, consumers will pay the tax in one way or another, and investment will start to move outside the U.S.. Now, I look at the Trump team, and while I don't believe Elon can cut out 2 trillion in government waste, I think he can make a dent in it. There are over 400 federal agencies and they all have two things in common. They have a budget and they want a bigger budget next year. These agencies never die and many live well beyond their life cycle, even when their mandate no longer exists. Let me give you an example. The Rural Electrification Administration was established in 1935 by FDR. Back then, the mandate made sense. They had to get electricity out to rural communities. And of course, later was expanded to cover phone service. But trust me, every farm has a phone and electricity. So then they added broadband as a mandate. I say give it to the private sector. Let Elon blanket these farms with StarLink satellites. He'll do it quicker and for less money. Stop the mission creep. Like I said, these agencies never die. Now, I watched Elon's rocket land, and it was like watching a falling skyscraper. And then catching it with chopsticks. If he could do that, I think cutting some fat out of Washington will be easy for him. Well, that's it for this week. If you want any more information about David Nelson and The Money Runner, go over to my substack site. dcnelson123@substack.com. I'm David Nelson. And this is The Money Runner.