Elon Musk’s Push for Privatization

Elon Musk announced on Wednesday that he aims to privatize the U.S. Postal Service and Amtrak, as reported by multiple news outlets. As the most influential oligarch in the U.S., Musk may soon get his way, leveraging his position to dismantle government agencies under the guise of a pseudo-government entity known as DOGE.

Musk stated, "I think logically we should privatize anything that can reasonably be privatized," according to Reuters. "I think we should privatize the Post Office and Amtrak, for example… We should privatize everything we possibly can." These remarks were made during a teleconference at the Morgan Stanley TMT conference in San Francisco, which was not open to the press.

Criticism of U.S. Rail Service

Musk criticized the U.S. rail service, advising international visitors to avoid using it, as it may leave a poor impression of America. However, he failed to provide context, such as his past opposition to high-speed rail in California and his vested interest in promoting his car company over mass transit. As the owner of a car company, Musk has a clear conflict of interest in advocating for the privatization of public transportation.

History of Opposition to Public Transportation

In 2013, Musk proposed the Hyperloop, a project aimed at derailing California’s publicly funded high-speed rail initiative, as detailed in Ashlee Vance’s biography. President Trump has also expressed opposition to the project, calling it "poorly managed." It is no surprise that Musk and Trump are opposed to government-funded projects, as they often prioritize private interests over public benefits.

Meetings with Republicans

Musk spent Wednesday on Capitol Hill, meeting with Republicans who cautioned him to let Congress handle appropriations. Musk reassured them that he would attempt to restore funding for pet projects, according to the Washington Post. However, this is not how the government is supposed to function. Congress has the power of the purse, and Musk has no authority to unilaterally decide what gets funded or cut.

Unauthorized Power

Musk has made himself the de facto arbiter of the government’s funding apparatus, despite lacking the authority to do so. He has offered to set up a direct line for Republican senators to address their concerns, allowing them to bypass the normal congressional process. This is not only illegal but also undermines the rule of law.

Consequences of Privatization

The U.S. Postal Service, which is mandated by the Constitution, may be on the chopping block. Critics argue that the agency "loses" money, but the same logic could be applied to any government service, including public schools and roads. Privatization would allow companies like Amazon to profit from government contracts, similar to how SpaceX benefits from NASA contracts.

Broader Dismantling Efforts

The privatization of Amtrak and the Postal Service is part of a larger effort to dismantle government agencies. Reports suggest that Trump plans to sign an executive order abolishing the Department of Education, another move that would require congressional approval. It remains to be seen whether Trump and Musk will respect the rule of law or continue to push for unchecked privatization and dismantling of government agencies.