Elon Musk appeared in an interview with U.S. Senator Ted Cruz as part of a YouTube podcast. The discussion touched on federal government spending, magic cash registers, nonprofit funding, and Musk’s views on artificial intelligence .
Senator Cruz praised Elon Musk ’s quick impact and asked him about the challenges of taking over DOGE compared to the federal government. Musk said that the government is harder to improve, describing the waste/fraud ratio as “ 80% waste, 20% fraud .” He emphasized that while the situation is bad, it also creates a lot of opportunity for change. The interview then turned to improving federal spending.
Magic cash registers in government agencies
Musk revealed waste in the government, with more software licenses and credit cards than employees. He cited examples of ongoing payments without records because contracts were not closed. When asked if this was fraud or incompetence, Musk said it was a combination, with a ratio of 80% waste to 20% fraud.
Musk warned of lax oversight of government spending, especially misuse of nonprofit funding. He referred to “magic cash registers”—systems that create money out of thin air, primarily within the Treasury Department. Musk emphasized that direct access to computer systems is necessary to eliminate waste and fraud, rather than relying solely on reports. Cruz agreed, saying the current approach is too bureaucratic and inefficient.
