Elon Musk-Trump spat on X is a distraction from the failures of DOGE
Just a week later, Musk's relationship with President Donald Trump ― the man Musk spent nearly $300 million to elect — went up in flames, as Americans watched the drama unfold in real time on X and Truth Social. Trump publicly denounced Musk as 'disloyal' for criticizing the president's signature legislative effort, the 'One Big Beautiful Bill,' while Musk called the bill a 'disgusting abomination' and openly called for Trump's impeachment. The spectacle of the richest man in the world and the president of the United States exchanging insults online may be remembered as DOGE's final chapter in the public imagination.
But it should not obscure the damage Musk wrought when he commanded one of the most powerful positions in the Trump administration.
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To start, Musk's promised savings never came. The DOGE website currently claims to have saved the public $175 billion through a range of actions like eliminating 'fraud and improper payment' and cancelling grants. But even that sum — which is believed to be falsely inflated through a combination of guesswork and suspect arithmetic — is less than 3% of the federal budget, and less than 9% of the $2 trillion in cuts Musk promised upon assuming his role. In other words, DOGE failed on Musk's own terms.
What did materialize is an unprecedented attack on public institutions, beginning with the people who carry out the work of public service.
According to the latest data, around 260,000 federal employees have either been forced out, been slated for cuts, or chosen to leave their posts since DOGE began its work.
These aren't faceless 'bureaucrats.' They are the people who test our water for contaminants, inspect our food for harmful bacteria, and ensure air travel is safe, among other public services.
The department with the highest number of planned terminations is Veterans Affairs, with up to 80,900 personnel serving our nation's veterans slated for future cuts, according to the New York Times. Many of these jobs are health care workers who care for veterans directly.
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In cutting both people and programs that provide essential services, DOGE attempted a bargain that Michiganders are painfully familiar with: treat government like a business, and attempt to cut public services to balance the books no matter the risks to public health, the economy or democracy.
During our state's era of emergency management, decision-making power in several cities and school districts like Flint and Detroit shifted from democratically elected local officials to appointees of the governor.
In Flint, a series of emergency managers focused on cost-cutting to address the city's financial crisis, including the ill-fated decision to switch the city's water source. The result was the worst man-made environmental catastrophe in American history.
Flint should have been a warning to the country that 'efficiency' without regard for public welfare is a dangerous proposition. Yet DOGE was a far more extreme expression of this logic.
Like Flint, the DOGE experiment is a grave warning about what happens when democracy is treated as a private enterprise rather than a public trust, when billionaires think they know best what people need in their own communities.
And while it may take decades to account for the potential harms DOGE's actions might produce, we are already seeing some.
Here in Michigan, DOGE reportedly canceled $394 million in federal public health grants, money that ultimately supports local health initiatives statewide.
These cuts are not abstract. They will be felt in people's bodies and the broader society. Local health providers will have to cut back on critical services such as vaccine administration and interventions for substance use disorder. According to a 2019 study, every dollar invested in public health departments yields as much as $67 to $88 of benefits to society.
DOGE also cut $15 million in AmeriCorps funding for our state, impacting programs that offered tutoring, support for seniors, and assistance for homeless residents. At a time when Michigan ranks 34th in the nation in overall child wellbeing, students in more than 60 school districts may see tutoring support disappear.
This begs the question: Who ultimately benefited from Musk's relentless cutting?
The clear answer is Elon Musk, who is $170 billion richer since endorsing Trump in the summer of 2024, even accounting for the drop in Tesla's stock attributed to the public backlash over DOGE's actions. (How this most recent fiasco will affect Musk's bottom line remains to be seen.)
Meanwhile, DOGE spent months attempting to 'delete' entire agencies like the Consumer Financial Protection Bureau (CFPB), which stops predatory banks from scamming veterans, seniors, and consumers in general. And it destroyed the IRS' ability to audit wealthy tax cheats, forcing workers and families to shoulder more of the nation's tax responsibility.
DOGE has also made us less free. The initiative's most significant legacy may be what the writer Julia Anguin described as 'a sprawling domestic surveillance system for the Trump administration ― the likes of which we have never seen in the United States.'
In agency after agency, Musk and his lieutenants accessed the most sensitive data about Americans and handled it with reckless disregard.
Information like Social Security numbers and bank accounts that once stood in the relative safety of government silos are now being merged to create more sweeping surveillance tools than ever before. They could be used to further crack down on immigrants' speech, or to simply make it easier to target political enemies.
This is what we're left with. A public more exposed to harm — from preventable diseases, from corporate predation and scams, from toxins in our air and water—and a small group of wealthy elites more empowered to dominate our government and our democracy. Perhaps this is why a solid majority of Americans disapprove of Musk's job performance, arguably accelerating his departure from government.
The American public deserves a government that is fit for purpose and delivers on its promises.
But Elon Musk never intended to create that. DOGE was built on the fiction of Musk's mastery of all things, one of the many myths attributed to the ultra-wealthy. What it concealed was a public sector novice who failed to understand the basic mechanics of the institutions he railed against.
On the day Musk announced his departure, a lawsuit against him and DOGE was cleared to proceed, accusing him of wielding unlawful power over federal agencies, contracts and data without democratic oversight.
It was a fitting coda. Musk left behind no durable reform, only institutions hollowed out, public trust frayed, and a template for how easily government can be turned against the people it exists to serve. Even this spectacular fallout with Trump should not distract from the wreckage he leaves behind.
Bilal Baydoun is Director of Democratic Institutions at the Roosevelt Institute, a national policy think tank devoted to building on the legacy of FDR. A version of this column was previously published on the Roosevelt Institute's Substack. Submit a letter to the editor at freep.com/letters, and we may publish it online and in print.
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This article originally appeared on Detroit Free Press: Elon Musk-Trump spat is a distraction from DOGE failures | Opinion
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"This revised guidance reflects improved pricing, particularly in DRAM, and strong execution," the company said in a statement. Micron's DRAM chips are one type of memory chip used in devices like personal computers and smartphones. Stocks steady at the open US stocks were steady at the open on Monday after the Nasdaq Composite (^IXIC) notched two consecutive records last week. The Dow Jones Industrial Average (^DJI) rose nearly 0.1%. The S&P 500 (^GSPC) and the tech-heavy Nasdaq (^IXIC) hovered above the flat line. Chip stocks were in focus Monday after Nvidia (NVDA) and AMD (AMD) reportedly inked deals with the US government to sell their chips to China in exchange for sharing 15% of their revenues from the country. Nvidia shares fell less than 1% on Monday, while AMD shares lost over 1.5%. Looking ahead this week, investors are awaiting a key inflation reading and the upcoming summit between President Trump and Russian President Putin. US stocks were steady at the open on Monday after the Nasdaq Composite (^IXIC) notched two consecutive records last week. The Dow Jones Industrial Average (^DJI) rose nearly 0.1%. The S&P 500 (^GSPC) and the tech-heavy Nasdaq (^IXIC) hovered above the flat line. Chip stocks were in focus Monday after Nvidia (NVDA) and AMD (AMD) reportedly inked deals with the US government to sell their chips to China in exchange for sharing 15% of their revenues from the country. Nvidia shares fell less than 1% on Monday, while AMD shares lost over 1.5%. Looking ahead this week, investors are awaiting a key inflation reading and the upcoming summit between President Trump and Russian President Putin. Paramount seals $7.7 billion exclusive US rights deal with UFC Paramount has agreed to a seven-year, $7.7 billion deal to become the exclusive US broadcaster of the Ultimate Fighting Championship (UFC). The agreement is Paramount's largest since David Ellison took over as chair and CEO last week, following the completion of Skydance's takeover of the company. Under the contract, Paramount will stream all 13 of UFC's marquee events and 30 Fight Nights annually on its streaming platform from 2026, with selected events also broadcast on CBS, the Financial Times reported. The FT reports: Read more here (subscription required). Paramount has agreed to a seven-year, $7.7 billion deal to become the exclusive US broadcaster of the Ultimate Fighting Championship (UFC). The agreement is Paramount's largest since David Ellison took over as chair and CEO last week, following the completion of Skydance's takeover of the company. Under the contract, Paramount will stream all 13 of UFC's marquee events and 30 Fight Nights annually on its streaming platform from 2026, with selected events also broadcast on CBS, the Financial Times reported. The FT reports: Read more here (subscription required). AMC tops revenue estimates as blockbuster titles boost theater attendance AMC (AMC) stock jumped 8% in premarket trading after the movie theater chain reported attendance in the second quarter grew nearly 26% as blockbusters drew in moviegoers. Reuters reports: Read more here. AMC (AMC) stock jumped 8% in premarket trading after the movie theater chain reported attendance in the second quarter grew nearly 26% as blockbusters drew in moviegoers. Reuters reports: Read more here. Nvidia, AMD stocks decline after chipmakers agree to pay US 15% cut of China chip sales Shares of Nvidia (NVDA) and AMD (AMD) fell on Monday after the two companies agreed to pay the US government 15% of the revenue for certain chip sales to China. Nvidia stock was off by 0.4% premarket, while AMD stock dropped 1.4% as investors digested the unusual deal in which the chipmakers will essentially pay for export licenses. While the details are still being worked out, the chips in question reportedly include Nvidia's H20 AI chip and AMD's MI308 chips, which previously faced export controls from the Trump administration. Nvidia CEO Jensen Huang made the deal at the White House last Wednesday, the same day Apple (AAPL) agreed to increase its US investment to $600 billion, ostensibly to help the company avoid tariffs, as the Trump administration looks to monetize trade policy. An Nvidia spokesperson told Yahoo Finance: 'We follow rules the U.S. government sets for our participation in worldwide markets. While we haven't shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide. America cannot repeat 5G and lose telecommunication leadership. America's AI tech stack can be the world's standard if we race." As for other chip stocks, Intel (INTC) and Qualcomm (QCOM) shares rose, while Taiwan Semiconductor (TSM) fell modestly. Read more here. Shares of Nvidia (NVDA) and AMD (AMD) fell on Monday after the two companies agreed to pay the US government 15% of the revenue for certain chip sales to China. Nvidia stock was off by 0.4% premarket, while AMD stock dropped 1.4% as investors digested the unusual deal in which the chipmakers will essentially pay for export licenses. While the details are still being worked out, the chips in question reportedly include Nvidia's H20 AI chip and AMD's MI308 chips, which previously faced export controls from the Trump administration. Nvidia CEO Jensen Huang made the deal at the White House last Wednesday, the same day Apple (AAPL) agreed to increase its US investment to $600 billion, ostensibly to help the company avoid tariffs, as the Trump administration looks to monetize trade policy. An Nvidia spokesperson told Yahoo Finance: 'We follow rules the U.S. government sets for our participation in worldwide markets. While we haven't shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide. America cannot repeat 5G and lose telecommunication leadership. America's AI tech stack can be the world's standard if we race." As for other chip stocks, Intel (INTC) and Qualcomm (QCOM) shares rose, while Taiwan Semiconductor (TSM) fell modestly. Read more here. Good morning. Here's what's happening today. Earnings: (BBAI), (MNDY), Oklo (OKLO), Plug Power (PLUG) Economic calendar: No notable releases. Here are some of the biggest stories you may have missed overnight and early this morning: Nvidia, AMD revenue deal brings 'monetization of US trade policy' Yahoo Finance poll: Americans face new, complex financial challenges Earnings live: stock tanks, AMC to report Debate over Fed rate cuts heats up: What to watch this week Fed's Bowman makes case for 3 interest rate cuts in 2025 Intel CEO to visit White House on Monday Citi strategists raise S&P 500 target on resilient earnings Bitcoin Nears Record as Treasury Investors Boost Crypto Market BofA poll shows record number of investors say stocks overvalued Lithium market soars as CATL shuts one of world's biggest mines Earnings: (BBAI), (MNDY), Oklo (OKLO), Plug Power (PLUG) Economic calendar: No notable releases. Here are some of the biggest stories you may have missed overnight and early this morning: Nvidia, AMD revenue deal brings 'monetization of US trade policy' Yahoo Finance poll: Americans face new, complex financial challenges Earnings live: stock tanks, AMC to report Debate over Fed rate cuts heats up: What to watch this week Fed's Bowman makes case for 3 interest rate cuts in 2025 Intel CEO to visit White House on Monday Citi strategists raise S&P 500 target on resilient earnings Bitcoin Nears Record as Treasury Investors Boost Crypto Market BofA poll shows record number of investors say stocks overvalued Lithium market soars as CATL shuts one of world's biggest mines stock tanks after the company reports earnings stock plunged aorund 20% in premarket trading on Monday after the Israeli-based software company reported earnings. In the second quarter, reported earnings of $0.03 per share and revenue of $299 million. While revenue beat analyst expectations of $293 million, GAAP profits fell short, as Wall Street was looking for $0.20 per share, per S&P Global Market Intelligence. Investors have been looking for signs that economic uncertainty is pushing companies to pull back their spending on technology and software. The company's operating loss fell to $11.6 million from $1.8 million a year ago, and the operating margin fell to negative 4% from 1% last year. Read more live coverage of corporate earnings here stock plunged aorund 20% in premarket trading on Monday after the Israeli-based software company reported earnings. In the second quarter, reported earnings of $0.03 per share and revenue of $299 million. While revenue beat analyst expectations of $293 million, GAAP profits fell short, as Wall Street was looking for $0.20 per share, per S&P Global Market Intelligence. Investors have been looking for signs that economic uncertainty is pushing companies to pull back their spending on technology and software. The company's operating loss fell to $11.6 million from $1.8 million a year ago, and the operating margin fell to negative 4% from 1% last year. Read more live coverage of corporate earnings here US gold futures fall as traders await clarification on tariffs US gold futures (GC=F) in New York fell 2% as traders waited for the White House to clarify its tariff policy. Last week, the US Customs and Border agency surprised the market by ruling that 100oz and 1kg gold bars would face tariffs. Bloomberg News reports: Read more here. US gold futures (GC=F) in New York fell 2% as traders waited for the White House to clarify its tariff policy. Last week, the US Customs and Border agency surprised the market by ruling that 100oz and 1kg gold bars would face tariffs. Bloomberg News reports: Read more here. Target still in the bear camp Good WSJ story this morning on Target (TGT) and its many challenges, one of them finding its next CEO. I wrote more on this a couple months ago. I would expect an abysmal quarter (another one) from Target when it reports second quarter earnings on August 20. The company is not only dealing with operational challenges, but it has totally lost the value perception battle with Walmart. I don't see these dynamics changing this year, and maybe not until deep into 2026 provided an outside CEO is brought in to run a full assessment of the business. Good WSJ story this morning on Target (TGT) and its many challenges, one of them finding its next CEO. I wrote more on this a couple months ago. I would expect an abysmal quarter (another one) from Target when it reports second quarter earnings on August 20. The company is not only dealing with operational challenges, but it has totally lost the value perception battle with Walmart. I don't see these dynamics changing this year, and maybe not until deep into 2026 provided an outside CEO is brought in to run a full assessment of the business. Bitcoin near a fresh record Bitcoin looks to be breaking out of its recent trading range, nearing a fresh record this morning. There doesn't appear to be a clear catalyst for the pop today, though this Sunday X post from bitcoin evangelist Michael Saylor may have stoked the bulls. It suggests he will continue to be a buyer of bitcoin — perhaps no surprise, but the crypto market likes to be coddled. "If you don't stop buying Bitcoin, you won't stop making Money," Saylor wrote. Bitcoin looks to be breaking out of its recent trading range, nearing a fresh record this morning. There doesn't appear to be a clear catalyst for the pop today, though this Sunday X post from bitcoin evangelist Michael Saylor may have stoked the bulls. It suggests he will continue to be a buyer of bitcoin — perhaps no surprise, but the crypto market likes to be coddled. "If you don't stop buying Bitcoin, you won't stop making Money," Saylor wrote. crashing Shares of (AI) are getting crushed pre-market to the tune of 30%. And the rout is 100% deserved. Late Friday the company said it sees preliminary first fiscal quarter revenue of $70.2 million to $70.4 million, about 33% below the mid-point of its prior guidance for $100 million to $109 million. Sales would be down 19% from the prior year. The adjusted operating loss will be $57.7 million to $59.9 million, roughly twice the $23.5 million to $33.5 million loss that it had expected. I don't think there is anything to read into the AI trade here — this seems very company-specific, and tied to a sales reorg. Shares of (AI) are getting crushed pre-market to the tune of 30%. And the rout is 100% deserved. Late Friday the company said it sees preliminary first fiscal quarter revenue of $70.2 million to $70.4 million, about 33% below the mid-point of its prior guidance for $100 million to $109 million. Sales would be down 19% from the prior year. The adjusted operating loss will be $57.7 million to $59.9 million, roughly twice the $23.5 million to $33.5 million loss that it had expected. I don't think there is anything to read into the AI trade here — this seems very company-specific, and tied to a sales reorg. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data