Economist Stephen Moore joined Chicago’s Morning Answer to discuss a wide range of pressing economic issues, from Elon Musk’s evolving role with the Department of Government Efficiency (Doge) to stalled tax relief efforts, trade tensions with China, and the persistent unwillingness of Congress to cut government spending.
Moore, co-author of The Trump Economic Miracle, made it clear: now is the time to lock in tax relief, rein in federal waste, and deliver results before the clock runs out.
Elon’s Doge Shift: Mission Accomplished, But Vigilance Required
Elon Musk recently announced that his role in the Department of Government Efficiency will scale back beginning in May. With much of the structural work completed, Musk said he’ll spend only one to two days a week on government matters going forward. Moore praised Musk’s contributions, saying he had done “a fantastic job” exposing “hundreds of billions of dollars” in government waste, fraud, and abuse.
“The question now,” Moore emphasized, “is whether Congress will do anything about it.”
Tax Bill Stuck in the Mud
While the Senate passed a tax relief bill weeks ago, Moore expressed concern over the pace of progress in the House. “This should be on the president’s desk by Memorial Day,” he insisted. He argued that signing the bill quickly—without raising tax rates—would bring a boost to markets and business confidence.
Trump recently reaffirmed he would not raise tax rates, despite expressing interest in taxing the wealthy. Moore was optimistic about Trump’s stance but admitted the messaging was a little “strange.”
Spending Cuts Still a Mirage in Washington
Moore didn’t mince words about Congress’s reluctance to cut spending—Republicans included.
“They talk a good game,” he said, but balk when it comes to meaningful cuts, even with glaring waste such as the $150 billion in improper Medicaid payments found by auditors.
“It’s demoralizing,” Moore said. “Nobody’s talking about cutting benefits for those who qualify, but we’re still funding people who don’t. It’s absurd.”
He criticized the GOP for failing to fight back against the predictable attacks from Democrats and the media, who portray even the most basic fraud prevention efforts as heartless.
Trade War Turbulence: Progress or Chaos?
As trade negotiations continue with China, India, and other partners, Moore expressed concern over the uncertainty caused by inconsistent rhetoric from the White House.
“Markets don’t like unpredictability,” he said, referencing recent 1,000-point swings on the Dow following off-the-cuff remarks by administration officials. Moore reiterated his opposition to tariffs but said if they’re going to be used, the U.S. should focus them solely on China and stop poking allies like Canada, Mexico, and Europe.
“Trump should try to unite the world against China,” Moore advised. “They’re the bad actor, they cheat, they steal, and they’re dangerous.”
While Trump has leverage—China needs access to the U.S. consumer market—Moore warned time is short. Delays risk hurting American retailers and manufacturers already struggling with supply chain problems.
Apple and Corporate Carveouts: The Wrong Way to Govern
Moore also criticized reports that Apple CEO Tim Cook received a private Oval Office meeting and walked out with a carveout from the tariffs. The move sent Apple stock soaring, but Moore called it a clear case of corporate welfare.
“How many small businesses get to cut their own deal in the Oval Office?” Moore asked. “That’s not how you make public policy.”
The Clock Is Ticking
Moore closed the segment by warning that both the tax relief and trade deals need to be completed quickly to avoid economic backsliding and a potential recession. While he praised Trump’s deregulation efforts and support for school choice, he stressed that the administration’s successes risk being overshadowed if tariffs dominate the agenda.
“We’ve got to get back to growth-focused policies,” Moore said. “If they get these deals done and pass the tax bill, we’ll see a major snapback in the market.”
Whether Congress can summon the will to act remains to be seen. But as Moore put it, time is not on their side.