Prof. Kolodko: Elon Musk lost as advisor to Donald Trump

manager24.pl 3 months ago

After six months of heading the Government Efficiency Department (DOGE), whose goal was to find savings at the expense of personnel cuts in the national administration, Elon Musk decided to resign from his political career and return to the business world. His Tesla can't number the first 4th of this year to successful. According to erstwhile finance minister prof. Grzegorz Kolodka, there are many reservations about the results of his work, although any of the assumptions he managed to perform.

I'm certain Elon Musk had a large influence on Donald Trump, due to the fact that if he hadn't, he wouldn't have engaged him for a while, which had already passed. But Trump, being a business man himself, is most likely delighted or even enthralled with the success of Elon Musk's business field, and he is simply a very talented man. – says news agency prof. Grzegorz Kolodko, erstwhile Deputy Prime Minister and Minister of Finance, lecturer at Leon Kozmiński Academy and author of the book "Trump 2.0. Revolution of sick Reasons". – As for his talents, which have been verified in the field of economical policy, it can be made with large reservations, so most likely it was more of the emotion of 1 businessman than of a common sense economical account.

Elon Musk completed his 130-day mission for Donald Trump and returned to business. For more than six months, he was head of DOGE, the Department of Government Efficiency, a agency whose goal was to reduce the number of employees in another government agencies. He was besides 1 of Donald Trump's chief advisors. At the end of May, however, he announced his departure, and although he had already announced his return to business, commentators draw attention to the skepticism with which he referred to the “big, beautiful” taxation bill, which Donald Trump is pushing in Congress.

The goal of Elon Musk, who was entrusted with the task of slimming government administration after, in 2022, after taking over Twitter, he dismissed 80% of his employees from the company, was to reduce government spending by 2 trillion dollars. However, they were able to reduce them "only" by 150 billion dollars. In an interview with CBS, Musk complained about the opposition of the national administration he had encountered and did not expect.

According to Reuters in information from mid-April, Muskow managed to relieve 260,000 national employees from a 2.3-million-pound crowd employed in the administration of officials. This was the time erstwhile the second offer of severance began. The first 1 in January was utilized by 75,000 people. In the IRS, jobs were to be reduced by 20-25 percent from the first number of 22 000, in the wellness Department employment fell from 82 000 to 62 000, and the Department of Defence employing 950 000 people was to say goodbye to 5-8 % of employees. The dismissals did not go smoothly; any of the employees appealed to courts that acknowledged their rations. This included, among others, 24 1000 employees on probation contracts; the court ordered them to be reinstated in March.

"The question was what was the criterion for the possible success of this cooperation. Musk can say that things didn't work out, we made any mistakes, and we fixed them right away, and Trump, in his style, will say that everything worked out, due to the fact that even if he's a 100 percent unsuccessful, he says that it's “great”, “beautiful”, “wonderful” and so on – indicates the lecturer of the Kozminski Academy. – Therefore, the question is what were the assumptions by engaging in Elon Musk's policy, and from this point of view, any of these assumptions, specified as the clear cutting off of employment in the US central national administration, have been mostly realised, but whether it was a appropriate action, that is another matter. No, I don't think so, due to the fact that Musk or Trump had his hands on Muska to pour out the baby with the bath.

The impulse to decision distant from politics could have been for the billionaire the disastrous results of his Tesla company, which in the first 4th saw advanced sales decline: revenues from the automotive manufacture fell by 20% compared to the erstwhile year, which is the lowest level since 2021. This resulted in a decrease in Tesla's full revenues by 9% year-on-year, a decrease in operating profit by 66% and a net profit by 71%. In the first 4th of 2025, Tesla earned nominally the least since 2020.

I think Elon Musk lost more on it— is judged by prof. Grzegorz Kolodko, asked whether Musk gained more or lost in cooperation with Trump administration. – He surely gained any experience, for any time he was not for technological or business reasons, but political on the lips, if not the full world, but at least those who watched what was happening there. In contrast, with respect to his business, due to the fact that any suspected that he had engaged politically in order to make more money and make more billions of dollars, he besides suffered any losses. But I think that he is actually very pleased with himself, due to the fact that he has done something, and his criteria of rationality and irrationality are different from the ones we are talking about here.

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