Read The Times Australia

Daily Bulletin

Is Elon Musk taking over the US government? Here’s how ‘state capture’ works – and why we should be concerned

  • Written by: Lee Morgenbesser, Associate Professor, School of Government and International Relations, Griffith University

Many Americans have watched in horror as Elon Musk, the world’s richest person, has been permitted to tear through various offices of the United States government in recent weeks. Backed by President Donald Trump, and supported by a small team of true believers, he has successfully laid siege to America’s vast federal bureaucracy.

On Tuesday, Trump signed an executive order giving Musk even more power. It requires federal agencies to cooperate with his “Department of Government Efficiency” (known as DOGE) in cutting their staffing levels and restricting new hires.

In his first comments to the media since joining the Trump administration as a “special” government employee, Musk also responded to criticism that he’s launching a “hostile takeover” of the US government.

The people voted for major government reform, and that’s what people are going to get.

Are Musk’s actions akin to a “hostile takeover” of government, or a coup? I argue it’s more a form of “state capture”. Here’s what that means.

Why it’s not a coup or self-coup

Under the pretence of maximising government efficiency and productivity, DOGE has amassed quite a bit of power. It has:

Musk’s blitzkrieg across Washington – carried out in apparent violation of numerous federal laws – has not only stirred confusion, but defied explanation.

A popular argument, supported by some historians and commentators, is that Musk’s actions amount to a coup. They argue this is not a coup in the classic sense of a takeover of the physical centres of power. Rather, it’s a seizure of digital infrastructure by an unelected group seeking to undo democratic practices and violate human rights.

A demonstrator holding a sign saying 'Stop the billionaire coup'
Demonstrators outside the US Office of Personnel Management headquarters in Washington. Alex Wroblewski/EPA

This term, however, is not technically correct. The most widely accepted definition of a coup is:

an overt attempt by the military or other elites within the state apparatus to unseat the sitting head of state using unconstitutional means.

Since Musk and Trump are bedfellows in this plot, the tech billionaire is clearly not trying to violently unseat the president.

Another possible explanation: this is a self-coup. This describes a situation in which

the sitting national leader takes decisive illegitimate action against countervailing institutions and elites to perpetuate the incumbent’s power.

In December, South Korean President Yoon Suk Yeol attempted a self-coup when he declared martial law in order to ostensibly protect the country from opposition forces. He quickly reversed his decision amid elite defections and mass public demonstrations.

Though self-coups are becoming more common, Musk is doing the dirty work in the US – not Trump. Also, Musk’s chief target – the bureaucracy – does not nominally offset presidential power (except in conspiracy theories).

What is ‘state capture’?

More accurately, Musk’s siege amounts to a form of “state capture”. This refers to:

the appropriation of state resources by political actors for their own ends: either private or political.

By this logic, Musk’s aim could be to capture different pieces of the US government and turn the state into a tool for wealth extraction.

State capture is a relatively simple but extremely destructive process. This is how it has played out in countries like Indonesia, Hungary, Nigeria, Russia, Sri Lanka and South Africa (Musk’s birthplace):

First, political and corporate elites gain control of formal institutions, information systems and bureaucratic policy-making processes.

Then, they use this power to apply rules selectively, make biased decisions and allocate resources based on private interests (rather than the public good).

In captured states, strongman leaders often use economic policy and regulatory decisions to reward their political friends. For instance, Hungarian Prime Minister Viktor Orbán, Russian President Vladimir Putin and former South African President Jacob Zuma have helped their allies by:

  • making government anti-trust decisions
  • issuing permits and licenses
  • awarding government contracts and concessions
  • waiving regulations or tariffs
  • conferring tax exempt status.

State capture is fundamentally a predatory process.

Viktor Orban.
Viktor Orban was democratically elected in Hungary, but has sought to weaken institutions and the judiciary in Hungary. Anna Szilagyi/AP

By taking over how the American government does business, Musk could be seeking to enrich a small but powerful network of allies.

The first beneficiary would be Trump, who is no stranger to using his office to expand his family’s business empire. With a more fully captured state, Trump can take an active role in determining how public wealth is dispersed among corporate and political elites. This decision-making power often goes hand-in-hand with “personalist” regimes, in which everything is a transaction with the leader.

The second beneficiary would be Musk himself and other Silicon Valley mega-billionaires who have bent a knee to Trump. By positioning their tech companies as the solution to what allegedly ails the federal government, particularly when it comes to the use of artificial intelligence, they stand to secure lucrative contracts handed out by the “new” state.

The third beneficiary would be the small army of engineers and technicians working with Musk to upend the American government. As loyal foot soldiers, these individuals will be compensated with career advancement, financial gains and networking opportunities, while also enjoying legal impunity. This kind of quid pro quo is how authoritarian regimes work.

What this could mean for the US

As Musk continues his assault on the federal bureaucracy, the American people will suffer the consequences.

The most immediate impact of state capture: worse decisions are made. By purging experienced civil servants, cancelling government contracts and accessing sensitive information systems, Musk’s actions will likely degrade the standard of living at home and endanger American lives abroad.

State capture also means there would be less accountability for the Trump administration’s public policy decisions. With a lack of congressional and independent oversight, key decisions over the distribution of economic benefits could be made informally behind closed doors.

Finally, state capture is inseparable from corruption. Doing business with the US federal government could soon require one to pass a loyalty test rather than a public interest test.

Trump’s enemies will encounter more hurdles, while his allies will have a seat at the table.

Authors: Lee Morgenbesser, Associate Professor, School of Government and International Relations, Griffith University

Read more https://theconversation.com/is-elon-musk-taking-over-the-us-government-heres-how-state-capture-works-and-why-we-should-be-concerned-249471

Business News

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Why European Vehicles Demand Specialised Maintenance on Australian Roads

European cars, encompassing premium brands like BMW, Audi, Mercedes, and Volkswagen, are highly soug...

How Melbourne Businesses Can Retain Top Talent Through Visa Sponsorship

Melbourne businesses are facing an increasingly complex hiring landscape. According to the Jobs and ...

Clever Ways to Combat Dampness and Maintain a Healthy Bathroom Environment

Australians currently spend more than 90 percent of their time indoors. This modern lifestyle heavil...

How Registering a Company in Singapore Can Support Business Growth

Choosing where to register a business can influence how easily it grows, attracts customers, and e...

What Business Owners Should Know About Company Registration in Hong Kong

Hong Kong is a popular location for entrepreneurs looking to establish businesses with internation...

What Entrepreneurs Should Know About the Benefits of Registering a Company in Australia

Starting a business involves more than finding customers and offering a good product or service.  ...

From Free-to-Air to Netflix: Where Australian Brands Are Spending Their TV Dollars Now

Not long ago, an ad break meant one thing in Australian homes: free-to-air television. Today it mi...

Why South Australia Leads the Country on Home Batteries

South Australia has long punched above its weight in renewable energy. The state has one of the hi...

Diagnosing Common Pool Problems in an Australian Summer

An Australian summer puts backyard pools under serious pressure. High temperatures, intense UV, he...