Hello. Welcome to TechScape. I’m Blake Montgomery, the Guardian’s US technology editor. Newsletter of the Week: Elon Musk and Donald Trump want to create a “Department of Government Efficiency,” cryptocurrencies score big wins across the board, and the modern-day equivalent of Lysistrata takes hold on TikTok. Thank you for your participation.
US President-elect Trump has expressed his desire to appoint Musk, the world’s richest man, as the country’s “cost-cutting secretary” with the goal of reducing the federal government’s bureaucracy by about a third, or $2 trillion. President Trump announced in September the creation of the Department of Government Efficiency. Musk has been endorsing the idea and actively promoting it, focusing on the agency’s acronym Doge (a nod to the popular Shiba Inu meme). President Trump stated that the agency will conduct a thorough financial and performance audit of the entire federal government to propose fundamental reforms.
In a video posted on X, Two days after the election, President Trump stated, “I am immediately reissuing my 2020 Executive Order, restoring the President’s authority to remove corrupt officials.” He aims to “eradicate the deep state,” echoing his famous catchphrase from The Apprentice: “You’re fired!” Project 2025, President Trump’s controversial blueprint for a second term, outlines how bureaucrats can be dismissed.
The billionaire appears to have no illusions about what will happen after the proposed cuts.
Mr. Musk has a proven track record of reducing corporate spending and has pledged to cut down federal payroll costs in a similar manner. He mentioned that after acquiring Company X (previously Twitter) in 2022, the company downsized its workforce by 80%. Despite preventing a $3 billion shortfall, revenue has declined significantly, and a revival seems improbable. However, as the CEO of SpaceX, he has established a reputation for launching rockets at lower costs than competitors by efficient management and negotiations with suppliers.
Considering the proposed spending cuts, the billionaire acknowledged that they would likely lead to temporary challenges, reflecting Americans’ desire for decreased expenditure. Do they advocate for austerity and federal budget cuts? Are they willing to heed advice from the world’s wealthiest person on curbing expenses?
Mr. Musk has already urged Mr. Trump to appoint SpaceX employees to key government roles. According to a report by The New York Times, the president-elect has vowed to restrict bureaucrats from transitioning to roles in regulated companies, potentially blocking SpaceX executives from federal positions. However, nepotism is not unfamiliar to the president-elect, and there seems to be no effort to avoid conflicts of interest. Mr. Musk’s involvement in the government will likely be structured to allow him to retain control of his businesses, as covered in the Financial Times.
During his first term, President Trump’s administration struggled to fill numerous government vacancies required for effective governance. Former New Jersey Governor Chris Christie’s administration admitted that it never fully recovered from the inability to appoint officials. Perhaps incorporating Mr. Musk into the equation is an attempt to avoid a repetition of such challenges. In a radical approach, Trump and Musk might simply eliminate positions for which suitable appointees cannot be found. This scenario is reminiscent of John Kennedy Toole’s novel, The Confederacy of Dunces, where a clueless protagonist attempts to clean up an organization’s mess, but only makes matters worse. It’s not far-fetched to imagine Trump and Musk following a similar path.
However, labor laws pose a significant obstacle for Musk, as Tesla remains the only major US automaker without unionized workers. The billionaire CEO intends to maintain this status quo. In contrast, federal employees benefit from strong job protections that may hinder Musk’s cost-cutting strategies. Despite his experience in managing various companies, handling public sector employees could prove challenging, as they may not be as flexible as those he is accustomed to.
Click here for more information. wonderful 4 months This has taken Elon Musk from someone who refused to endorse candidates to perhaps the most powerful figure in American politics, second only to Donald Trump. Read more about how Trump’s second term could be richer Musk.
Cryptocurrency companies poured $135 million into the US election, but what did they get for it?
The cryptocurrency industry witnessed significant victories in the 48 elections where FairShake, the largest crypto pack, donated, with all industry-backed candidates emerging victorious. According to Bloomberg, over 60% of the cash contributed supported Republican candidates or opposed Democratic contenders.
The industry’s major investment was in Ohio, where Republican Bernie Moreno, backed by a cryptocurrency company with $40 million, challenged popular Democratic incumbent Sen. Sherrod Brown. Mr. Brown’s advocacy for stricter regulation of digital currencies conflicted with the industry’s interests. Earlier, crypto companies spent $10 million targeting Katie Porter, a proponent of tougher crypto laws, in the California Senate primary, resulting in her defeat. Another crypto advocacy group, Protect Progress, equally invested in Senate races in Arizona and Michigan, where crypto was less contentious, but successful candidates were supportive of industry-related legislation.
Apart from the future advantages of a favorable regulatory climate, the cryptocurrency industry has reaped immediate economic gains, with Bitcoin reaching record highs exceeding $75,000.
While Fairshake did not contribute to the presidential election, it stands to benefit from the outcome, as Trump now endorses cryptocurrencies and supports the industry, reversing his initial stance. Musk has actively promoted cryptocurrencies, particularly Dogecoin, for years, even before their surge in popularity. (Harris has remained neutral towards cryptocurrencies.)
Musk is particularly interested in the removal of stock exchange chairman Gary Gensler, aligning with his priorities for cryptocurrencies.
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Coinbase, the world’s second largest cryptocurrency exchange, donated $25 million to Fairshake. Coinbase CEO Brian Armstrong remarked that DC has received a clear message that opposition to crypto could end political careers, as he observed following the US election. The industry ranks second in political contributions after fossil fuel companies, according to consumer advocacy organization Public Citizen.
This week on iPhone
I am watching dystopian coffeehouse comedy on Instagram and exploring why South Korea’s 4B movement (a modern-day version of Lysistrata) has gained popularity on TikTok. My colleague Alaina Demopoulos elaborates:
The core concept: Women vow to abstain from heterosexual marriage, dating, sex, and childbearing in protest against institutionalized misogyny and abuse. (Dubbed 4B after these four specific commitments.) Originating from online protests against revenge porn around 2018, the movement evolved into a #MeToo-inspired feminist movement in South Korea.
In light of Trump’s win, American women are contemplating the 4Bs, as highlighted by Demopoulos.
Read the full article here.
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Source: www.theguardian.com
