### Elon Musk’s Campaign to Eliminate USAID: Ill-Advised and Misguided

Elon Musk has advocated for the closure of the U.S. Agency for International Development (USAID), labeling it a *”viper’s nest”* and a *”ball of worms”* inhabited by unsavory individuals. Given Musk’s track record of disseminating misinformation—over 70 of his statements have been flagged as misleading on his own platform, Twitter/X—his intentions are met with skepticism by many. Legal professionals and politicians assert that his endeavor to dismantle USAID is clearly unconstitutional. Simultaneously, public perception of Musk’s involvement in governance is waning, with 53% of Americans expressing disapproval, according to the latest Quinnipiac survey.

Concurrently, a significant number of Americans are worried about the escalating federal budget deficit, which currently amounts to $1.8 trillion per year. Gallup surveys consistently reveal that over half of Americans are concerned about the deficit. Some might believe that discontinuing USAID, which manages international aid, would substantially cut government costs. However, that belief is misguided.

### Understanding USAID’s Financial Allocation

Research conducted by the Chicago Council on Global Affairs indicates that Americans greatly exaggerate the portion of the federal budget allocated to foreign aid. The average estimate was 8.5%—which would total more than $620 billion by 2025. In truth, USAID’s budget is limited to no more than $40 billion, which is under 1% of the federal budget. By comparison, Musk, whose fortune is estimated at $414 billion, could fund USAID personally for more than ten years.

So why is Musk focusing on this relatively minor agency in his grand plan to cut $2 trillion from federal expenditures? What functions does USAID serve, and does it yield a return on investment for the U.S.? From a practical, business-orientated perspective, should a self-styled futurist like Musk be advocating for *increased* funding for USAID? (Spoiler: Yes.)

### The Functions of USAID

Interestingly, while numerous Americans may be against broad government assistance, bipartisan majorities endorse the specific programs that USAID finances.

– **82%** of Americans favor disaster relief for areas affected by war and climate issues.
– **80%** support offering food and medical aid to the world’s most vulnerable groups.
– **76%** back assistance to farmers in drought-stricken nations to boost their productivity.

USAID was founded in 1961 under President John F. Kennedy, during the Cold War, to enhance U.S. presence abroad. Its mission has continued to be significant even post-Cold War. Congress officially recognized it as an independent agency in 1998, and it has been reauthorized multiple times since 2016.

Today, USAID is vital for addressing global emergencies, including natural disasters and health crises. Reducing its budget has already led to turmoil in at-risk regions and empowered authoritarian governments.

### Cutting USAID Won’t Address the Deficit

If Musk is earnest about curtailing government inefficiency, USAID is the wrong choice. There are far bigger segments of federal expenditure that merit examination.

For instance, Musk has himself critiqued the F-35 fighter jet program, which has cost the U.S. government over $10 trillion and is arguably less effective than contemporary drone warfare. This year, the Pentagon’s budget is expected to exceed $1 trillion—more than the total military spending of the next nine highest-spending countries combined.

However, Musk is allied with a political faction that seeks a *massive* uptick in military funding. Questioning the defense budget could pose political risks for him. Likewise, he steers clear of targeting Social Security and Medicare, which are politically off-limits.

Instead, Musk has opted to focus on USAID—one of the smallest federal agencies, with no robust domestic backing. His method resembles traditional bullying: targeting the weakest opponent instead of addressing the real culprits of federal overspending.

### The Importance of USAID—Even for a Business-Oriented Leader

Even from a business standpoint, USAID offers significant returns on investment. It stimulates economic development in emerging nations, establishing future markets for American products and services. Additionally, it fosters global stability, diminishing the chances of conflicts that could necessitate costly military interventions.

A prime historical illustration of this strategy’s effectiveness is the **Marshall Plan**. Following World War II, the U.S. invested $150 billion (adjusted for inflation) to rehabilitate Europe. At that time, this assistance constituted 12% of the federal budget. The outcome? By 1950, economies in Europe had bounced back, and the U.S. enjoyed a **37% GDP rise during the 1950s**. The only other instance of the U.S. economy expanding at a comparable rate occurred during the tech boom of the 1990s.

### The Geopolitical Implications of Eliminating USAID