Emergency Episode: Nothing Stands Between Elon and Treasury's Payments System
Feb 2, 2025
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In this riveting discussion, Sarah Frier, Bloomberg's Big Tech editor, dives into Elon Musk's controversial access to the U.S. Treasury's payment system. They explore the potential ramifications of a private individual managing public finances and the unsettling impact on federal employees. The conversation also highlights the conflicts of interest surrounding Musk's power within government operations. Frier's insights bring clarity to the chaos, questioning the implications for American citizens and financial integrity.
Elon Musk's unprecedented access to the Treasury's payment system poses serious risks to the financial management of critical government operations.
The chaotic management approach Musk employed at Twitter raises concerns about his handling of sensitive government functions and potential political backlash.
Deep dives
Access to Treasury Payment Systems
Elon Musk and his associates have reportedly gained unprecedented access to the U.S. Treasury's payment system, allowing them control over substantial government financial operations. This access raises serious concerns about the potential for misuse, especially given Musk's history of erratic behavior and lack of formal government oversight. The situation is further complicated by reports of forced resignations of career officials who previously managed these systems, suggesting that bureaucratic safeguards are being undermined. This unprecedented level of influence poses not only a risk of chaotic financial management but also threatens the stability and integrity of U.S. government operations.
Comparisons to Musk's Twitter Management
There are striking parallels between Musk’s management of the Treasury payment system and his chaotic takeover of Twitter, now branded as X. Just as he implemented abrupt changes at Twitter, including mass layoffs and unilateral contracts cancellations, similar tactics appear to be emerging within government agencies. Observers point out that Musk’s operational approach, characterized by a lack of respect for protocols and a willingness to rapidly implement changes, could exacerbate potentially harmful situations in a governmental context. Such erratic management could lead to significant adverse effects on critical public services compared to the relatively manageable consequences of disruptions at a social media platform.
Political Ramifications and Public Reaction
Musk's newfound control over vital government functions could generate significant political backlash and public concern regarding his decisions. Critics highlight that the oversight and control of government disbursements should remain firmly structured within Congress, pointing to ethical conflicts and the separation of powers. Any missteps or controversial decisions made by Musk could lead to widespread public outcry, especially regarding essential services like Social Security and healthcare. It remains to be seen how the government will respond to this potential crisis and what political costs Musk may face if dissatisfaction continues to rise among taxpayers and federal employees.
In a week of unprecedented action (and chaos) from both Elon Musk and the Trump administration, breaking news this weekend brought the Elon, Inc. team together for an emergency episode. The New York Times broke the news, and the Washington Post followed, that Musk’s Department of Government Efficiency was given access to the Treasury Department’s payment system. This system, which handles a big chunk of the government’s money transfers, including Social Security, is normally administered by a small number of non-political appointees, and it was reported that Musk’s desire to get in the gears drove a career Treasury official out of the department late this week.
This is a big deal. Musk has many apparent conflicts of interest, and beyond the finances, this is where sensitive information about American citizens is stored. To discuss this development, host Max Chafkin is joined by Sarah Frier, Big Tech editor; Kurt Wagner, social media reporter; and Dana Hull, who covers Musk for Bloomberg News.