Musk and Trump: A volatile alliance shaping U.S. politics
The alliance between Elon Musk and Donald Trump, the world's wealthiest individual and the future president of the United States, poses the risk of creating a dangerous oligarchy. Due to their personalities, this could lead to a "tumultuous psychodrama with global ramifications," observes "The Economist."
On election night, Trump, while announcing his victory, spent 17% of his time praising the "super genius" who stepped away from his numerous ventures to support his campaign. The future president also announced that his Make America Great Again (MAGA) movement had a new star - Elon Musk.
The British weekly estimates, based on available data, that Musk spent approximately $200 (CAD 280) million on supporting Trump's candidacy. This is a substantial amount, given that the total declared expenditures by his campaign staff and external groups thus far amount to about $1.1 (CAD 1.5) billion.
If things go wrong, Mr Musk may suffer dire consequences - predicts "The Economist."
Since the presidential election, Tesla's market capitalization, which comprises two-thirds of Musk's wealth, has increased by $300 (CAD 420) billion. This figure is more than twice the market value of General Motors, Ford, and Stellantis combined.
Assigning Musk the task of overseeing and cutting expenditures in the American administration might create a new issue in the USA - a form of "corrupt oligarchy." "The Economist" calculates that 10% of Musk's personal fortune, valued at $360 (CAD 505) billion, comes from government contracts. Close ties with the president may allow him to influence regulations affecting his businesses, secure government contracts, and bypass tariffs, which would be very costly for competitors.
The collaboration between Musk and Trump may also "normalise collusion between politicians and tycoons" - warns the weekly.
Uncle of the first family of the USA
The status of "first buddy" and "uncle Elon," which Musk holds at Mar-a-Lago, Trump's residence, also carries political risks. The billionaire has been involved in appointing positions in the new administration and participating in freelance diplomacy.
Attempts to take a stance or shape policy in foreign relations are beyond Musk's mandate and competence. This is particularly risky as, being merely an advisor, he is not subject to the rules and ethical codes that apply to federal administration employees - notes "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 - the weekly summarizes.
