Musk Defends Milei's "Chainsaw Austerity," Criticizes Trump's Tax Cut Plan

Local Media: "Fiscal Austerity Debate Rekindled in the US and Latin America"

Elon Musk, CEO of Tesla, who has been at odds with U.S. President Donald Trump, criticized President Trump's tax cut proposal by citing the success of Argentine President Javier Milei's fiscal austerity policies, according to reports from Argentine daily La Nacion and others on June 8 (local time).

Tesla CEO Elon Musk is holding up a chainsaw he received from Argentine President Javier Milei at the Conservative Political Action Conference (CPAC) held in Maryland, USA, on February 20 (local time). Photo by Reuters Yonhap News

La Nacion explained that CEO Musk attacked President Trump's budget bill by leveraging his ideological affinity with President Milei's austerity policies, retweeting a post on X (formerly Twitter) the previous day.

The post retweeted by CEO Musk stated, "President Milei reduced public spending by as much as 30% and achieved a surplus in just one month. His popularity has not declined; in fact, it has increased. Do not say that fiscal discipline is unpopular with ordinary citizens. It is only unpopular with the powerful special interests that dominate Washington, D.C." The post was accompanied by a photo of President Milei wielding his trademark chainsaw alongside his brother.

Another local media outlet, Perfil, reported that "the post retweeted by CEO Musk spread rapidly, reigniting debate across the United States and Latin America about the fiscal austerity model."

CEO Musk has shown interest in President Milei's fiscal austerity pledges since Milei was a presidential candidate. Since Milei's inauguration, the two have met several times in various locations, strengthening their bond. In February, at a conservative event held in Maryland, USA, President Milei met with CEO Musk and presented him with a chainsaw, the symbol of the election campaign that brought him to the presidency.

President Milei, often called the "Trump of Argentina," reduced the number of central government ministries from 18 to 8 and dismissed around 40,000 public employees as part of his sweeping fiscal austerity measures after taking office, cutting government spending by approximately 30%. Similarly, CEO Musk previously led government spending cuts as head of the Department of Government Efficiency (DOGE) during the Trump administration.

Currently, Argentina's economy is facing challenges such as a sharp decline in domestic consumption, lack of investment and foreign reserves, and rising external debt. However, the World Bank (WB) and the International Monetary Fund (IMF) predict that Argentina's economic growth rate will exceed 5% this year.