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WGS 2025: Musk calls for eliminating federal agencies to “restore people’s rule” and cut costs

Musk pointed to decades of accumulated regulations that have left the system overwhelmed.

Elon Musk

Elon Musk made a strong case for dismantling large parts of the US federal bureaucracy, arguing that doing so would restore democratic governance and enhance efficiency. Speaking via video call At the World Government Summit in Dubai, Musk said the US was governed more by its bureaucracy than its people. “We really have here rule of the bureaucracy as opposed to rule of the people—democracy,” he said, calling for the complete elimination of several federal agencies to prevent bureaucratic bloat from creeping back.

Musk pointed to decades of accumulated regulations that have left the system overwhelmed. “Every year, you get more laws and regulations, until eventually, everything is illegal and nothing is permitted,” he said, stressing that only radical intervention could reset the balance.

In response to concerns that future administrations might reverse these efforts, Musk insisted that partial cuts wouldn’t be enough. “If you leave part of them behind, it’s like leaving the roots of a weed—it just grows back,” he said. His solution is to delete entire agencies to ensure lasting reform. Musk also highlighted the inefficiencies plaguing government technology, describing outdated systems that slow down essential services. He pointed to the US Office of Personnel Management’s retirement processing system, which still relies on paper documents stored in a Pennsylvania mine. “One of the things that affects the rate at which federal workers can retire is the speed of the elevator in a mine,” he said, adding that digitising and automating such processes would cut costs and improve efficiency.

Based on his Twitter experience, Musk argued that government agencies could benefit from similar restructuring. He noted that cutting Twitter’s staff by 80% after his acquisition not only reduced costs but also improved the platform’s functionality. “We accomplished more in a year than they did in five,” he said, suggesting that the same approach could streamline federal operations.

The efficiency department

Musk’s remarks come as he takes on a formal role in President Donald Trump’s administration, leading the newly created Department of Government Efficiency (DOGE). The initiative has already begun reviewing and proposing cuts to various federal bodies and has stirred controversy. Notably, efforts to dismantle the US Agency for International Development (USAID) have faced legal pushback, with courts halting parts of the process.

Musk also hinted at broader geopolitical implications, suggesting that a leaner US government would mean less intervention in foreign affairs. “I think we should, in general, leave other countries to their own business,” he said. “America should mind its own business rather than push for regime change all over the place.”

He said his overarching goal is to reduce government spending by about $1 trillion annually, which he believes would help drive economic growth of 4-5% and curb inflation. Lower deficits, Musk argued, would ease pressure on interest rates, leading to lower mortgage, car loan, and credit card payments for ordinary Americans.

Musk’s proposals have drawn sharp criticism, with opponents warning that aggressive cuts could dismantle essential services. Others have questioned the concentration of power in the hands of one of the world’s wealthiest businessmen, especially one with vast interests in industries directly affected by government policies. Nonetheless, Musk remains focused on what he sees as a necessary overhaul. “The aspiration here is a reduction in regulation and reduction in government spending, such that the economy is able to grow faster,” he said.