In a move that has sparked significant controversy, former President Donald Trump has orchestrated a series of actions that some analysts warn could destabilize the U.S. governmental structure. The primary focus of Trump's strategy appears to be the consolidation of power by leveraging his influence over influential billionaire Elon Musk. This has raised alarms regarding the potential erosion of democratic principles.
Trump recently removed a high-ranking Treasury official who had been blocking Musk's access to the federal payment system. This bold maneuver not only paved the way for Musk but also inadvertently exposed sensitive personal data of millions of Americans and details about public contractors competing with Musk's enterprises. The implications of this breach have yet to be fully realized, but it underscores the risks involved in Trump's aggressive approach.
Economists, including Nobel laureate Paul Krugman, are sounding the alarm about Trump’s maneuvers. Krugman warns that if Trump succeeds, it could represent a 21st-century coup, where power slips from elected officials into the hands of a few influential individuals. This concern is further compounded by Trump's proposed tax plan, which could result in a 0.2% hit to GDP and the loss of approximately 142,000 jobs, according to the Tax Foundation.
Furthermore, Trump's America First trade strategy has not led to the revitalization of U.S. manufacturing as promised. Instead, it has increased costs without delivering on its objectives due to insufficient investment in domestic industry. Trump’s use of tariffs, justified by national security claims, continues to bypass Congressional oversight, illustrating his willingness to wield executive power unilaterally.
Adding fuel to the fire, Trump has frozen trillions in federal spending on foreign aid, nongovernmental organizations, and initiatives perceived as progressive or environmental, such as the "Green New Deal". This freeze is seen as part of Trump’s broader strategy to slash federal spending and taxes while claiming fiscal responsibility, despite the potential negative impacts on key government programs.
The situation with Musk and USAid highlights another dimension of Trump's strategy. Musk's assertion that he will close USAid challenges federal requirements for administering aid. This proposal has been met with skepticism given that the U.S government disburses over $5 trillion annually.