Poor Elon Musk! – Econlib

While I don’t want to come off as overly paternalistic, it’s hard to ignore the fact that Elon Musk has ventured into a realm he clearly doesn’t fully grasp. “This is what victory feels like!” he exuberantly proclaimed at Mr. Trump’s inauguration event (watch the one-minute spectacle here). With more than $250 million funneled into the Trump 2024 campaign, Musk’s enthusiasm was palpable. However, his grandiose claims of slashing $2 trillion from federal expenditures were quickly dialed back to $1 trillion, and ultimately, he managed to achieve a meager less than 20% of that goal. Unsurprisingly, his penchant for conspiracy theories didn’t bolster his political acumen.

The tumultuous deterioration of the Musk-Trump alliance was, in hindsight, all but inevitable. (Refer to “The Trump-Musk Relationship Ruptures in Real Time,” Wall Street Journal, June 4, 2025; and “The Trump-Musk ‘War of the Roses’,” June 5, 2025.) Both individuals are not accustomed to being overshadowed, and Trump has a history of turning against former allies. It’s amusing to consider that Musk, much like Trump, seems to demand a fealty reminiscent of medieval loyalties, yet neither grasps the concept of power being decentralized. Both leaders operate from a standpoint of power rather than liberty, often with emotions overshadowing rational thought.

While Musk is undeniably an innovative visionary and entrepreneur, he isn’t shy about seeking governmental support. His recent foray into the political arena, albeit a risky gamble on Trump, may haunt him for the foreseeable future.

Despite opposing the extravagant “Big Beautiful Bill” and, somewhat subtly, the trade war, Musk doesn’t quite fit the mold of a libertarian or classical liberal. The classical liberal tradition offers a political and economic philosophy that rejects the idea that government should primarily serve immediate personal interests at the expense of others. At best, Musk’s political stance resembles a naive form of democratism, grounded in the “will of the people” that even lawyers hesitate to challenge. He likely hasn’t engaged with structured libertarian arguments.

Some may have hoped that Musk would eventually embrace the liberal ideal of liberty. However, that hope seems increasingly futile. Generally, individuals in their fifties—or even thirties, as John Maynard Keynes suggested—are unlikely to seriously entertain new ideas. The likelihood of Musk taking the proverbial red pill appears slim. (See my post “Elon Musk, Edward Luce, and Libertarianism,” June 5, 2023.)

The stronger Musk’s ties to Leviathan grow, the more politics morphs into what Anthony de Jasay termed a game of coercively benefitting select clienteles while harming others. Musk believed he was aligning himself with the beneficial side of this divide; he may now find himself, regrettably, on the opposite end. Trump took to social media to declare:

The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts.

While Musk’s wealth might provide him some insulation against the adversarial state, he should be wary of attracting Leviathan’s ire. As the infamous Lavrentiy Beria, head of Stalin’s secret police, supposedly said, “Show me the man and I’ll find you the crime.” According to the Wall Street Journal, Steve Bannon has even suggested investigating Musk’s immigration status. The Economist reports that Bannon even wants Musk stripped of his American citizenship. Other threats have been floated, leaving Musk in a precarious position where he may find himself wishing for judicial protections against the “will of the people” turned against him.

In a tussle between the king and the courtier, history suggests the latter seldom emerges victorious. Nonetheless, unexpected twists and turns are entirely possible. Given that Trump, too, has much to lose, there’s a chance these two titans may bury the hatchet, at least superficially or temporarily. As William Riker astutely noted, in democratic systems lacking institutional constraints, “anything can happen.”

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In this fictional future, Elon Musk would need a companion