November 3, 2024
Billionaire hedge fund manager John Paulson has ambitious ideas for federal spending cuts, which he plans to implement if tapped as Treasury Secretary under a potential second Trump administration. In an interview with Fox & Friends, the Trump ally revealed that he is committed to collaborating with Elon Musk to reshape government spending and streamline economic policy.
Paulson criticized current federal expenditures, particularly those aligned with environmental subsidies. “The government is now subsidizing, to the tune of $1 trillion, the Green New [energy] Deal,” he said. “That’s subsidies for electric vehicles, subsidies for solar panels, subsidies for wind.” According to Paulson, these subsidies are unfair to Americans who do not benefit directly, particularly taxpayers who don’t own electric vehicles or use solar energy. “I’m all for electric vehicles,” he added, “but I don’t think the government should take your tax dollars to subsidize that.”
In addition to rolling back environmental subsidies, Paulson highlighted a proposal to cut federal benefits for illegal immigrants, potentially saving an estimated $150 billion in taxpayer dollars. “Trump has made a commitment: no federal benefits for illegal immigrants,” he stated. Paulson emphasized that these savings would protect resources for U.S. citizens while still prioritizing economic growth and fiscal responsibility.
At a recent Trump rally at Madison Square Garden, Musk echoed Paulson’s cost-cutting approach, suggesting that as much as $2 trillion could be shaved off the $6.5 trillion federal budget. Trump himself has spoken favorably of Musk’s business acumen, teasing that Musk could have a role in the next administration, though not necessarily in a formal cabinet position. “He’s a great cost-cutter,” Trump told Sunday Morning Futures host Maria Bartiromo. “[Musk] said, ‘I could cut costs without affecting anybody.’”
Reports suggest that Trump is likely considering Paulson as his choice for Treasury Secretary. Paulson has already indicated what his top priorities would be if he were appointed to the role, stating he would extend Trump-era tax cuts and focus on reducing federal spending. “The tax policy was very, very helpful. The economy grew. That’s the most important thing,” he said.
In addition to tax policy and spending cuts, Paulson outlined a four-pronged strategy:
- Maintain the Trump-era tax cuts – to continue stimulating economic growth.
- Eliminate costly subsidies – particularly those related to environmental initiatives he views as ineffective.
- Protect American industries through tariffs – an initiative popular with Trump supporters as a measure to keep domestic industries competitive.
- Collaborate with Elon Musk to streamline regulatory costs and reduce the sheer volume of federal regulations.
Paulson’s plan would represent one of the largest budget overhauls in recent history, effectively aiming to pull back on spending that many conservatives view as wasteful or misdirected. Musk’s influence in the process would likely bring a Silicon Valley-style approach to fiscal efficiency and technological integration in federal operations.
As Election Day nears, the possibility of a Trump-Paulson-Musk alliance at the helm of U.S. economic policy is likely to become a significant campaign talking point.
