Department of Government Efficiency (DOGE) Are the Foxes Gaurding the Hen Houses

Elon Musk is involved in several high-profile companies, either as an owner, major shareholder, or CEO. Here are the key ones:

  1. Tesla: Musk is the CEO and the largest shareholder of Tesla, a leading electric vehicle manufacturer⁴⁵.
  2. SpaceX: He is the founder, CEO, and chief engineer of SpaceX, a private aerospace manufacturer and space transportation company⁴⁵.
  3. X (formerly Twitter): Musk acquired Twitter in 2022, rebranding it as X. He is the owner and CEO of the platform⁴⁵.
  4. The Boring Company: Founded by Musk, this company focuses on tunnel construction and infrastructure projects⁴⁵.
  5. Neuralink: Musk co-founded Neuralink, a neurotechnology company developing implantable brain–machine interfaces⁶.
  6. xAI: This is Musk’s artificial intelligence company, launched in 2023, aiming to understand the true nature of the universe⁴.

Source: Conversation with Copilot, 11/28/2024 (1) The Complete List of Elon Musk Companies - Thomasnet. https://www.thomasnet.com/insights/elon-musk-companies/. (2) List of Elon Musk Companies: How the Tech Mogul Manages Them All - Observer. https://observer.com/2023/10/elon-musk-companies-key-people/. (3) Which Elon Musk Companies Are Publicly Traded? - Market Realist. https://marketrealist.com/p/which-elon-musk-companies-are-publicly-traded/. (4) Elon Musk’s X claims ownership of user accounts in InfoWars sale dispute with The Onion. https://www.techspot.com/news/105749-elon-musk-x-challenges-infowars-sale-claims-ownership.html. (5) Elon Musk Claims ‘Superior Ownership’ Over Alex Jones, Infowars X Accounts as The Onion Pursues Acquisition. https://www.msn.com/en-us/money/companies/elon-musk-claims-superior-ownership-over-alex-jones-infowars-x-accounts-as-the-onion-pursues-acquisition/ar-AA1uOuKG. (6) Elon Musk Claims X Owns All User Accounts in a New Filing, Amidst the Onion’s InfoWars Purchase. https://www.techtimes.com/articles/308480/20241127/elon-musk-claims-x-owns-all-user-accounts-new-filing-amidst-onions-infowars-purchase.htm. (7) undefined. http://observermedia.com/terms.

Vivek Ramaswamy is a prominent entrepreneur and investor involved in several companies. Here are the key ones:

  1. Roivant Sciences: Ramaswamy founded this pharmaceutical company in 2014. He was the CEO until 2021 and remained chairman until 2023¹².
  2. Strive Asset Management: He co-founded this investment firm in 2022 and serves as the Executive Chairman³⁴.

Source: Conversation with Copilot, 11/28/2024 (1) Vivek Ramaswamy - Wikipedia. https://en.wikipedia.org/wiki/Vivek_Ramaswamy. (2) Vivek Ramaswamy’s Net Worth Is 9 Figures—See How the … - Investopedia. https://www.investopedia.com/vivek-ramaswamy-net-worth-8744950. (3) Vivek Ramaswamy - Co-Founder @ Strive Asset Management - FinNotes. https://www.finnotes.org/people/vivek-ramaswamy. (4) Vivek Ramaswamy - Ballotpedia. https://ballotpedia.org/Vivek_Ramaswamy.

Several federal government agencies have oversight over the companies owned or led by Elon Musk and Vivek Ramaswamy. Here are the key agencies involved:

Elon Musk’s Companies:

  1. Tesla:
    • National Highway Traffic Safety Administration (NHTSA): Oversees vehicle safety standards and recalls.
    • Environmental Protection Agency (EPA): Regulates emissions and environmental compliance.
    • Securities and Exchange Commission (SEC): Monitors financial disclosures and securities regulations³.
    • Internal Revenue Service (IRS): No person or company is exempt.
  2. SpaceX:
    • Federal Aviation Administration (FAA): Regulates commercial space launches and reentries.
    • National Aeronautics and Space Administration (NASA): Collaborates on space missions and contracts.
    • Department of Defense (DoD): Engages in defense contracts and satellite launches².
    • Environmental Protection Agency (EPA): Regulates emissions and environmental compliance.
    • Internal Revenue Service (IRS): No person or company is exempt.
  3. X (formerly Twitter):
    • Federal Trade Commission (FTC): Ensures consumer protection and privacy standards.
    • Federal Communications Commission (FCC): Regulates communications and broadcasting⁴.
    • Internal Revenue Service (IRS): No person or company is exempt.
  4. The Boring Company:
    • Department of Transportation (DOT): Oversees transportation infrastructure projects.
    • Environmental Protection Agency (EPA): Ensures environmental compliance for tunneling projects⁴.
    • Internal Revenue Service (IRS): No person or company is exempt.
  5. Neuralink:
    • Food and Drug Administration (FDA): Regulates medical devices and clinical trials.
    • National Institutes of Health (NIH): Provides research funding and oversight⁴.
    • Internal Revenue Service (IRS): No person or company is exempt.
  6. xAI:
    • Federal Trade Commission (FTC): Monitors AI ethics and consumer protection.
    • Department of Commerce: Oversees technology and innovation policies⁴.
    • Internal Revenue Service (IRS): No person or company is exempt.
  7. Starlink:
    • Federal Aviation Administration (FAA): Regulates commercial space launches and reentries
    • Federal Trade Commission (FTC): Ensures consumer protection and privacy standards.
    • Federal Communications Commission (FCC): Regulates communications and broadcasting⁴.
    • Internal Revenue Service (IRS): No person or company is exempt.

Vivek Ramaswamy’s Companies:

  1. Roivant Sciences:
    • Food and Drug Administration (FDA): Regulates drug development and approval.
    • Securities and Exchange Commission (SEC): Monitors financial disclosures and securities regulations¹.
    • Internal Revenue Service (IRS): No person or company is exempt.
  2. Strive Asset Management:
    • Securities and Exchange Commission (SEC): Oversees investment management and compliance.
    • Department of Labor (DOL): Regulates fiduciary responsibilities and retirement plans³.
    • Internal Revenue Service (IRS): No person or company is exempt.

These agencies ensure that the companies comply with various regulations and standards, from safety and environmental impact to financial transparency and consumer protection.

Source: Conversation with Copilot, 11/28/2024 (1) Tesla, SpaceX, Elon Musk ventures cleared by SEC for private …. https://www.teslarati.com/spacex-tesla-the-boring-company-neuralink-sec-waivers/. (2) How Tesla and SpaceX benefit from government spending - USA TODAY. https://www.usatoday.com/story/money/2024/11/15/how-tesla-and-spacex-benefit-from-government-spending/76301473007/. (3) Ethics laws could limit Elon Musk’s role in new DOGE | AP News. https://apnews.com/article/trump-elon-musk-doge-tesla-spacex-80fa8b213b46460b1a0e369dc07a6404. (4) How Elon Musk’s plan to slash government agencies can benefit him – NBC …. https://www.nbcnewyork.com/news/business/money-report/how-elon-musks-plan-to-slash-government-agencies-and-regulation-may-benefit-his-empire/6009784/.

Musk and Ramaswamy think they have new power to cut federal regulations. Here’s why it’s not so simple

Story by Tami Luhby, CNN. November 28, 2024.

  • Supreme Court Rulings: Elon Musk and Vivek Ramaswamy plan to use recent Supreme Court decisions to reduce federal regulations, but experts argue these rulings might actually complicate their efforts.
  • Regulatory Challenges: Overturning existing regulations requires a lengthy administrative process, including public comments and justifications, which could take years and face legal challenges.
  • Staff Reductions: Musk and Ramaswamy’s proposal to cut federal workers could backfire, as these staffers are essential for reviewing and changing regulations.
  • Conflicts of Interest: Both Musk and Ramaswamy have business interests that would benefit from fewer regulations, raising concerns about potential conflicts of interest.

Elon Musk and Vivek Ramaswamy intend to lean on two recent Supreme Court rulings that they argue will make it easier to tear up a multitude of federal regulations.

The duo, who President-elect Donald Trump named to lead the newly formed Department of Government Efficiency, known as DOGE, point to the decisions in West Virginia v. Environmental Protection Agency in 2022 and in Loper Bright Enterprises v. Raimondo earlier this year, both of which limited federal agencies’ regulatory authority.

However, multiple legal and regulatory experts told CNN that Musk and Ramaswamy are misinterpreting the decisions, which could actually make it harder to overturn existing rules.

“These recent Supreme Court rulings won’t make their life easier in reducing the stock of existing regulations,” said James Broughel, senior fellow at the Competitive Enterprise Institute, a free-market think tank that aims to reduce regulations. Decisions “like Loper Bright work against them,” he said.

Major rulings

In the Loper Bright ruling, the justices overturned long-standing judicial precedent that required courts to give deference to federal agencies’ rulemaking when a law is ambiguous, with the new decision meaning that courts will give more scrutiny to the regulatory moves the executive branch is making. In the West Virginia case, the Supreme Court cut back agencies’ power to address issues of major economic and political significance when Congress hasn’t explicitly given the agencies those authorities.

“Together, these cases suggest that a plethora of current federal regulations exceed the authority Congress has granted under the law,” Musk and Ramaswamy, who have many business ventures that would benefit from fewer regulations, wrote in a recent op-ed in The Wall Street Journal. “DOGE will present this list of regulations to President Trump, who can, by executive action, immediately pause the enforcement of those regulations and initiate the process for review and rescission. This would liberate individuals and businesses from illicit regulations never passed by Congress and stimulate the U.S. economy.”

But there are several problems with the pair’s assertions, said Nicholas Bagley, an administrative law expert and University of Michigan Law School professor.

“Those are cases that limit agency discretion,” he told CNN. “The cases add nothing to the executive branch’s power to reconsider old regulations.”

Plus, federal departments would still have to follow the administrative process to overturn a rule – by issuing a new regulation in its place. The agencies would have to justify why they are changing the regulation and allow the public to comment on the proposed rule. The cumbersome effort would require significant agency resources, could take several years and would likely be subject to legal challenges after the new regulation was finalized.

“It’s a very painstaking, very difficult process that’s likely to fail in most cases,” said Richard Pierce Jr., a George Washington University law professor who specializes in administrative law and government regulation.

Slashing needed workers

What’s more, the endeavor would require a lot of assistance from agency staffers – the very workers that Musk and Ramaswamy have promised to cut. The duo argue in the op-ed that a reduction in the number of federal workers should at least be “proportionate” to the number of regulations eliminated, adding that fewer employees would be needed to produce and enforce regulations in the future.

That could backfire, experts say.

“These are the people that they’re going to need to review all these regulations,” Broughel said. “If they really want to make a major dent in the stock of regulations, they’re going to need people who have been working with these regulations day in and day out, and that’s the career civil service staff.”

Trump also promised a massive rollback in regulations during his first term, but he was more successful in slowing the pace of new regulations rather than slashing a multitude of existing ones, Broughel said.

During Trump’s first administration, the Council of Economic Advisers published a report in 2019 that said the president’s deregulatory actions would raise household income by $3,100 after five to 10 years. Also, it noted that the introduction of new regulations was being kept to a minimum.

There is, however, a way to eliminate some of the regulations recently implemented by the Biden administration. GOP lawmakers can use the Congressional Review Act to overturn rules enacted in the final months of President Joe Biden’s term, and those reversal measures are not subject to the Senate filibuster, meaning Republicans will only need 50 votes in the upper chamber to wipe those newly enacted Biden rules off the books. Roughly 100 rules could be eligible, according to a list compiled by Public Citizen, a consumer advocacy group.

Conflicts of interest

Both Musk, who owns X and is CEO of Tesla and SpaceX, and Ramaswamy, a biotech entrepreneur, have reasons to want to slash regulations, which could interfere with their vast business portfolios. For instance, in a town hall on X last month, Musk repeatedly criticized government regulations, citing their interference with his companies.

“It’s quite arduous getting regulatory approval,” Musk said while discussing his Neuralink startup that develops implantable brain-computer interfaces. “It does slow us down, and I think we should be able to go faster in the US with advancing Neuralink technology and other technologies that are out there unrelated to my company.”