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Musk and Bezos Get Their Billion-Dollar Federal Contracts After Sucking Up to Trump

Musk and Bezos Get Their Billion-Dollar Federal Contracts After Sucking Up to Trump

Yahoo08-04-2025

Billions of dollars in federal contracts have been awarded to Elon Musk's and Jeff Bezos' companies, solidifying the ties between two of the world's richest men and President Donald Trump.
The United States Space Force, the military branch Trump created during his first term, has awarded both Blue Origin and SpaceX massive government contracts: almost $6 billion for Musk, and $2.3 billion for Bezos.
Musk's company was the top awardee for national security contracts, which SpaceX confirmed on Monday would 'include a mix of Falcon 9 and Falcon Heavy rockets and will take place over a five-year period.'
Bezos' Blue Origin has attempted to become a direct competitor with SpaceX—though the two companies are miles apart in terms of impact. Musk's company held over 130 launches last year in comparison to the Amazon founder's four.
Musk took a jab at Blue Origin after Space Force's announcement, claiming that the other companies 'aren't there' in terms of completing missions.
'Winning 60% of the missions may sound generous, but the reality is that all SpaceX competitors combined cannot currently deliver the other 40%,' Musk wrote on X. 'I hope they succeed, but they aren't there yet.'
Blue Origin's CEO, however, has a different viewpoint.
'We are committed to meeting the heavy lift needs of our U.S. DoD and intelligence agency customers,' Dave Limp posted Friday.
Both of the billionaires, however, have shown their allegiance to President Trump in recent weeks.
Both had front-row tickets to the president's inauguration in January, and Musk has since become one of Trump's closest advisers.
Bezos and Musk have Trump-proofed their other businesses, too. The Amazon billionaire seemingly tightened the leash on coverage of the administration in The Washington Post after Trump's inauguration, the latest drama in the storied newsroom after Bezos banned the paper from endorsing a presidential candidate late last year.
The decision singlehandedly caused hundreds of thousands of subscribers to jump ship, decimating the newspaper's business. Alongside its customer exodus, multiple reporters and editors have left.
Musk, on the other hand, has used his social media platform, X, as a microphone for amplifying the president's agenda.
The two have also kissed the ring when it comes to political donations. Bezos' Amazon donated $1 million to Trump's inauguration fund, while Musk donated a whopping $288 million.

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Cyberattack Reveals Soft Underbelly Of Supermarket Food Supply
Cyberattack Reveals Soft Underbelly Of Supermarket Food Supply

Forbes

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  • Forbes

Cyberattack Reveals Soft Underbelly Of Supermarket Food Supply

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Global stock market reacts to Trump's ceasefire in Israel-Iran war
Global stock market reacts to Trump's ceasefire in Israel-Iran war

Fast Company

time20 minutes ago

  • Fast Company

Global stock market reacts to Trump's ceasefire in Israel-Iran war

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Trump's Big Beautiful Bill Will Harm Those At The Bottom
Trump's Big Beautiful Bill Will Harm Those At The Bottom

Forbes

time20 minutes ago

  • Forbes

Trump's Big Beautiful Bill Will Harm Those At The Bottom

Post written by Dr Sandra Portocarrero , Assistant Professor of Management at the London School of Economics, and Christian Flores, a former special adviser at the White House Council of Economic Advisers in the Biden Administration and Economist at the National Domestic Workers Alliance. WASHINGTON, DC - MAY 22: U.S. Speaker of the House Mike Johnson (R-LA) speaks to the media after the ... More House narrowly passed a bill forwarding President Donald Trump's agenda at the U.S. Capitol on May 22, 2025 in Washington, DC. The tax and spending legislation, in what has been called the "One, Big, Beautiful Bill" Act, redirects money to the military and border security and includes cuts to Medicaid, education and other domestic programs. Johnson was flanked by House Committee Chairmen who helped craft the legislation. (Photo by) Getty Images Trump's "Big Beautiful Bill" is a sweeping legislative package that aims to cut taxes and increase spending on energy, defense, and Immigration and Customs Enforcement (ICE) while also slashing Medicaid and food assistance programs. This bill, which is being pushed through budget reconciliation —a special legislative process intended to help lawmakers make tax and spending changes with only 51 votes—has noteworthy implications for the U.S. economy and its citizens, especially those at the lower end of the economic spectrum. While the macroeconomic effects, such as adding to the deficit and debt , are concerning, the bill's impact on inequality is even more troubling, with analysis suggesting it may be the most regressive law in decades. The primary purpose of Trump's bill is to extend the expiring conditions of the 2017 Tax Cuts and Jobs Act (TCJA) at a cost of $2.2 trillion . As was the case with the initial introduction of this Act, the extension of the TCJA primarily benefits the wealthiest individuals, with the top 1 percent of earners receiving tax cuts of $64,000 to nearly $90,000. In comparison, those in the bottom 20 percent would see just $90 of benefits. This disproportionate weighting in favor of the richest Americans could see the widening of the already insurmountable wealth gap . Furthermore, despite the extraordinary cost, previous analyses of the original TCJA indicated that it did not meaningfully boost the economy or pay for itself as initially claimed . Indeed, the non-partisan Congressional Research Service stated that "the literature as a whole does not provide support for significant effects of the Tax Cuts and Jobs Act on the economy." 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Jaqueline Lamar is a care worker who relies on Medicaid funding not only for her and her family's healthcare needs, but also for her salary. As a stroke victim, Jaqueline experienced first-hand how thinly stretched healthcare can leave Americans out in the cold. Additionally, work requirements for Medicaid recipients are ineffective in increasing labor force participation , and most recipients are already employed . Cuts to Medicaid would also negatively impact demographics and fertility, as 41 percent of births are funded by Medicaid , with over half of those births from Black and Hispanic mothers who already face higher maternal mortality rates . These cuts specifically impact those at the bottom by either pulling the rug out from under those who rely on Medicaid coverage or exacerbating the negative impacts on already marginalized communities. Increased Immigration Enforcement Finally, the bill allocates $140 billion to immigration and border law enforcement. This includes the construction of a border wall and additional funding for ICE. In total, the Cato Institute finds that the bill's increased spending for these provisions dwarfs all other law enforcement expenditures. Observers would have found it hard to miss the Trump Administration's recent foray into immigration enforcement in Los Angeles and the subsequent fallout. Still, beyond the high-profile raids and protests, the broader impact of immigration enforcement might be harder to ignore. Mass deportations, the kind Trump aims for, could cost the U.S. economy $1 trillion . This is because, despite assertions to the contrary, research, such as Dr Sandra Portocarrero's work on undocumented entrepreneurs in California , has shown that immigrants contribute positively to the economy. For example, the non-partisan Congressional Budget Office estimates that, over 10 years, the recent undocumented immigration surge could reduce the federal deficit by nearly $900 billion . In addition, mass deportations would lead to labor shortages in key sectors and a loss of tax revenue. Excessive immigration enforcement, as a result of the bill, would rob low-income areas of growth and available public spending. The distributional effects of the "Big Beautiful Bill" are clear: it is a giveaway to the wealthiest Americans at the expense of the poor and working class. Contrary to the administration's claims , the bill does not promote large economic growth . Instead, it continues a pattern of erratic policies that disproportionately harm the most vulnerable, such as tariffs and cuts to foreign aid . Follow LSE's Department of Management on LinkedIn . Check out our website .

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