Elon Musk, a billionaire advisor to President Donald Trump, has advocated for the extensive privatization of government services, citing the U.S. Postal Service and Amtrak as key candidates for private ownership.

During a virtual appearance at a Morgan Stanley technology conference on Wednesday, March 6, 2025, Musk proposed that the government should “privatize everything we possibly can.”

The tech entrepreneur, leading the recently established Department of Government Efficiency, compared the Trump administration’s cost-reduction efforts to a “corporate takeover” while advocating for the transition of government-operated services to the private sector.

As reported by CNN’s Hadas Gold, Musk argued that the government is “in much worse shape than any commercial company could ever be.”

Musk specifically criticized Amtrak, the national passenger rail service, labeling it as “a sad situation” that negatively affects international visitors’ perceptions of U.S. infrastructure.

“If you’re coming from another country, please don’t use our national rail,” he said. “It can leave you with a very bad impression of America.”

The billionaire cited China’s high-speed rail system as an example of superior passenger rail services compared to those in the United States. His critique of American rail is longstanding, with Musk’s “Hyperloop” transportation concept reportedly originating from his disapproval of California’s high-speed rail proposal.

Regarding the U.S. Postal Service, Musk argued that privatization would establish a necessary “feedback loop for improvement.” He claimed that publicly funded services lack incentives to improve because they do not face existential threats.

“Something’s got to have some chance of going bankrupt, or there’s not a good feedback loop for improvement,” Musk stated.

The USPS, an independent agency of the executive branch, has experienced significant financial difficulties in recent years. In the last fiscal year, the Postal Service reported a $9.5 billion loss, following a $6.5 billion deficit the previous year. Since 2007, the USPS has accumulated over $100 billion in losses, largely due to declining first-class mail volumes.

Nevertheless, the USPS reported a fourth-quarter profit of $144 million in 2024, indicating some financial improvement by the end of the year.

The USPS operates under a “universal service obligation,” mandating it to deliver mail to all Americans, regardless of distance or profitability. While this mandate ensures service to remote areas, critics argue that it contributes to the agency’s financial challenges.

Musk’s push for privatization aligns with President Trump’s prior statements. Last December, Trump remarked to the press that privatizing USPS was “not the worst idea I’ve ever heard.”

Despite Musk’s critique, Amtrak has reported record ridership and revenue in recent years. The passenger rail service recorded a 15% increase in ridership in 2024, reaching a record 32.8 million customer trips. Amtrak aims to double its nationwide ridership to 66 million passengers by 2040.

Amtrak has opposed calls for privatization, asserting that its business performance is robust. The rail service received $66 billion in funding for rail projects from the Biden administration, including $22 billion for Amtrak over five years.

The New York Times reports that Amtrak expects to turn a profit for the first time under the Trump administration, contradicting Musk’s negative assessment of the service.

Analysts observe that any privatization efforts would face considerable obstacles, as Congressional approval is required. Many lawmakers, including Republicans from rural areas, support Amtrak’s long-distance routes despite their unprofitability, making privatization politically challenging.

Beyond Amtrak and the USPS, Musk has also identified Social Security as a potential target for privatization. Last Friday, during an appearance on Joe Rogan’s podcast, Musk referred to Social Security as “the biggest Ponzi scheme of all time.”

Musk argued that Social Security’s future obligations surpass its tax revenue, with demographic changes—such as longer life expectancies and fewer workers supporting more retirees—placing strain on the system.

Critics have challenged Musk’s characterization of Social Security as a Ponzi scheme, emphasizing that while the program faces financial difficulties, it is not inherently fraudulent. Unlike a Ponzi scheme, Social Security is a transparent government program with legally guaranteed benefits.

Senate Democrats have denounced Musk’s comments about Social Security and the proposed 7,000 job cuts at the Social Security Administration. They caution that these cuts could lead to disruptions in benefits and have pledged to work with House members to prevent any reductions to the program.

As the head of Trump’s Department of Government Efficiency, Musk is anticipated to continue targeting government agencies for cost reduction and potential privatization. However, the implementation of his recommendations will ultimately require congressional action, foreshadowing potential legislative battles over the future of these services.