Experts worldwide are watching closely as President Javier Milei carries out his bold libertarian agenda in Argentina. With SpaceX CEO Elon Musk soon taking up a new role as the head of the U.S. Department of Government Efficiency (DOGE), the idea of applying Milei’s model to U.S. government structures is gaining traction.
Known as the “Chainsaw Model” — a nod to Milei’s famous chainsaw prop from his campaign — this approach focuses on cutting down the bureaucracy that, he argues, clogs the government.
Recently, President Milei highlighted the success of his De-Regulation and State Transformation Ministry, noting it as a model for his vision of efficient governance. This success is now inspiring plans within the Trump administration to implement similar policies, with Musk’s involvement being key.
Milei shared that President-Elect Trump has enlisted Musk to help roll out this approach in the U.S., taking a page from the experience of Federico Sturzenegger, Argentina’s minister of de-regulation.
Milei explained: “Elon Musk and I have discussed the next steps, and he’s already in touch with Federico to replicate this model. We’re spreading the Chainsaw Model around the world.”
What President Milei Plans to Get with the Chainsaw Model
Milei’s “chainsaw model” targets cutting out non-essential or unproductive institutions to reduce the state’s unnecessary expenses. The goal is to streamline government functions, keeping it focused only on core services while stepping back from other activities.
This approach has already led to the closure of several ministries in Argentina, impacting significant institutions like the Coin House and even the tax agency, which was replaced by a leaner organization.
Reports suggest Milei’s strategy is working to cut state spending, with over 33,000 job positions already eliminated. More state-owned companies are also under review, including Argentine Airlines, which may face sale or closure.
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Elon Musk Issues Serious U.S. ‘Bankruptcy’ Warning
Elon Musk has been raising concerns about a possible “financial emergency” on the horizon. Recently, Elon Musk has expressed serious worries about the United States’ growing debt, which now stands at an eye-watering $35 trillion.
This comes as Bitcoin’s price has shot up—though it’s actually been outpaced by Dogecoin, a meme-inspired cryptocurrency that’s gained popularity, partly due to Musk’s endorsement of the so-called Department of Government Efficiency.
Amid this financial chatter, there’s growing speculation about whether Trump could consider using Bitcoin to help address U.S. debt. Musk, for his part, has labelled the country’s debt growth as “unsustainable.”
Reason Behind Elon Musk’s Statement
Musk was responding to Senator Rand Paul from Kentucky, who supports Bitcoin and recently voiced concerns over the unsustainable nature of the U.S.’s $2 trillion annual deficit.
Paul has been a notable Bitcoin advocate. Back in 2015, he made headlines by accepting Bitcoin donations for his presidential campaign, making him one of the first major politicians to do so. He’s long argued that a shift to crypto might be inevitable, citing rising public distrust in the dollar and concerns about government surveillance.
The national debt has surged to over $34 trillion as of early 2024, spurred by the economic fallout from Covid and massive stimulus spending. These measures led to high inflation and prompted the Federal Reserve to raise interest rates faster than ever before.
As Argentina’s President Milei pushes bold libertarian reforms, the U.S. is watching closely—especially with Elon Musk soon taking charge of the Department of Government Efficiency (DOGE). Inspired by Milei’s “chainsaw model” to cut wasteful spending, Elon Musk could bring similar changes to the U.S. government. With national debt at a staggering $35 trillion, Musk’s warnings about an approaching “financial emergency” feel even more urgent. If Musk applies Milei’s approach, we could see a leaner U.S. government focused on essential services and reducing unnecessary costs.
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