A Conflict of Interest

A conflict occurs when an individual’s personal life or professional life is such that it interferes with their ability to objectively view a situation and make a reasonable decision regarding it. Such is the case with Mr. Musk and his oversight role of the Department of Governmental Efficiency. Space-X, Mr. Musk’s privately held company has received tens of billions of dollars in governmental contracts for the military and NASA. Additionally, Tesla has enjoyed both low-interest loans and government tax credits which have helped keep its products low cost. It must be noted that Tesla paid back their loans early. But it must also be noted that according to economic experts without government help, Tesla would probably not have survived and definitely would not have enjoyed its current market share and associated profits. Space-X has made over nineteen billion dollars in government contracts over the past seventeen years, with three point eight billion dollars in fiscal year 2024 alone. In short, Mr. Musk has secured his place as the world's richest man via tax dollars from the U.S. government.

This constitutes a conflict of interest. How can a man who has made so much of his wealth from government contracts be expected to view government spending objectively? In the case of government employees, there are various mechanisms which sequester wealth and business interests providing a firewall between the individual concerned and their ability to profit from government. In fact, this is a procedure historically used for presidents, cabinet officials, and judges. But President Trump and his administration have eschewed such constraints, refusing to either sign disclosure documents or create the blind trusts needed to ensure transparency. They did develop their own agreements, which were evaluated by competent authorities and found insufficient. In addition, by listing Mr. Musk and many of his team as Special Government Employees a category created and used since 1962, the Trump administration has avoided many of the normal checks and restraints regarding employment by the government. The White House has said that Mr. Musk would identify any situations which might pose a conflict of interest; however, government regulations do not allow an individual to assume that role. Instead, an ethics official is required to make such a judgement. 

The cavalier attitude displayed by Mr. Musk and the Trump Administration towards the proper management of personnel and potential conflicts of interest does not inspire confidence in their objectivity and ability. It is hard to believe that with billions of dollars at stake Mr. Musk can objectively view his company and the myriad of governmental agencies it must deal with. While in the Army, I served as a Contracting Officer’s Representative, and we were prohibited from accepting anything worth more than the price of a baseball cap. Gifts, whether in actual items or services such as lunch or hotel visits, were prohibited because of potential conflicts of interest. Why is it acceptable for Mr. Musk who makes a significant portion of his personal fortune from the government to serve as the leader of a quasi-governmental agency tasked with rooting out and eliminating government waste?