How Musk built his empire off of government contracts

Summary

Apple News Today: How Musk Built His Empire Off of Government Contracts
Release Date: March 3, 2025
Host: Shemitah Basu

1. Escalating Support for Ukraine Amid Diplomatic Tensions

Shemitah Basu opens the episode by addressing the fallout from a contentious meeting in the Oval Office involving President Donald Trump, Vice President J.D. Vance, and Ukrainian President Volodymyr Zelensky. The meeting, marked by sharp exchanges, has prompted a swift response from European allies aiming to bolster Ukraine's defenses.

Keir Starmer, UK Prime Minister, announced significant aid for Ukraine:
- [01:00]: “Today I'm announcing a new deal which allows Ukraine to use 1.6 billion pounds of UK export finance to buy more than 5,000 air defense missiles.”
- Additionally, Starmer proposed a nearly $3 billion loan to Ukraine, to be repaid using profits from sanctioned Russian assets. He emphasized that a “coalition of the willing” would sustain aid and maintain economic pressure on Russia, insisting that Ukraine’s participation in peace talks is "non-negotiable.”

French President Emmanuel Macron contributed to the peace proposal, indicating a one-month ceasefire across air, sea, and energy sectors, while clarifying that no European troops would be deployed at this stage.

The episode highlights the aftermath of the Oval Office meeting where tensions flared:

[02:16]: Keir Starmer remarked, “You’re not winning this.”
[02:21]: Volodymyr Zelensky responded, “President, we are staying in our country, staying strong.”

Despite the heated exchange, Zelensky remains committed to a mineral extraction deal, though negotiations have stalled as Treasury Secretary Scott Besant confirmed to CBS that the agreement is no longer viable.

Marco Rubio, Secretary of State, defended Trump's approach:

[03:12]: “Shouldn't we all be happy that we have a president who's trying to stop wars and prevent them instead of start them?”

However, internal criticism persists:

Senator Lisa Murkowski accused the administration of “embracing Putin, a threat to democracy and US Values around the world.”
Senator Mark Kelly labeled Trump and Vance as “bullies.”

Keir Starmer summarized the situation:

[03:49]: “The only winner in that exchange is Putin, who's a criminal. So it was a sad day for our country. It was a dumpster fire of diplomacy.”

A Russian official echoed these sentiments, suggesting the White House’s conduct was a “gift to the Kremlin,” aligning US foreign policy closer to Russia’s interests.

Looking ahead, President Trump is scheduled to address Congress, potentially outlining his administration's stance on Ukraine, while Senator Elissa Slotkin is set to present the Democratic response.

2. Elon Musk’s Empire: A Government-Fueled Ascent

Transitioning to business, Shemitah Basu delves into an investigative report by The Washington Post uncovering the extent of government funding that has underpinned Elon Musk’s rise to becoming the world’s richest individual.

Investigative Reporter Desmond Butler reveals:

[05:13]: “There were $38 billion in contracts, loans, subsidies and tax credits.”
Nearly two-thirds of this funding was allocated over the past five years, with an additional $11.8 billion pending from 52 contracts across seven government agencies, including NASA and the Defense Department.

This substantial backing was pivotal during the nascent stages of Tesla and SpaceX:

[05:54]: Butler notes, “There was a moment in 2008 when Tesla was really not in a good position and they sought a loan from the energy department for $465 million.”
Musk actively engaged with government officials to secure this lifeline, with former Tesla employees asserting the company's survival hinged on this support.

Similarly, SpaceX benefited from NASA and Defense Department contracts, despite not always meeting required milestones, as noted by congressional investigations.

Ironically, Musk has recently advocated for the termination of many of these benefits:

[06:46]: He has called to end subsidies across all industries and the consumer credit for electric vehicles that significantly boosted Tesla’s sales.
His newly formed Department of Government Efficiency is working to reduce staffing budgets and contracts within the very agencies that have supported his ventures.

Butler underscores the reciprocal benefits:

[07:21]: “The government has clearly benefited from these partnerships too.”

However, Musk's push for fiscal austerity threatens to undermine future startups seeking similar support:

[07:45]: Butler warns, “You could see it as kind of closing the door after you walk through it.”

3. Oscars Night: Indie Triumphs and Political Undertones

The podcast shifts focus to the recent Academy Awards, highlighting significant wins and their broader implications.

Anora, a lower-budget film, emerged as the night's standout, securing five Oscars, including Best Picture. Director Sean Baker accepted the award:

[08:24]: “I want to thank the Academy for recognizing a truly independent film.”

With a modest $6 million budget, Baker overcame funding challenges by casting largely unknown Russian, Armenian actors, and American actress Mikey Madison. Madison's win for Best Actress was particularly surprising, overshadowing favorites like Demi Moore.

Another notable winner was No Other Land, awarded Best Documentary. Directed by Palestinian activist Basil Adra and Israeli journalist Yuval Abraham, the film addresses the destruction of Palestinian homes and calls for a cessation of ethnic cleansing in Gaza:

[10:08]: Volodymyr Zelensky lauded the film, stating, “We call on the world to take serious actions to stop the injustice and to stop the ethnic cleansing of Palestinian people.”

Despite its critical acclaim, No Other Land struggled to gain distribution within the United States, as director Abraham explained to Variety, citing limited space for such political critiques.

The ceremony also recognized Zoe Saldana for Amelia Perez, Kieran Culkin for his supporting role in A Real Pain, and Adrien Brody for The Brutalist.

4. Ongoing Conflict and Humanitarian Concerns in Gaza

The podcast returns to international affairs with updates on the Israeli-Palestinian conflict:

Prime Minister Benjamin Netanyahu has halted all humanitarian aid to Gaza as the first phase of a ceasefire concludes.
Negotiations for phase two focus on ending the war and securing the release of hostages, though progress remains uncertain.

The White House supports Israel’s decision, asserting that Hamas is uninterested in continued ceasefire talks. Conversely, Hamas maintains readiness to negotiate but condemns Israel’s blockade of aid as a war crime.

In a significant move, Secretary of State Marco Rubio utilized emergency authorities to dispatch $4 billion in weapons to Israel, marking the second such bypass of congressional approval within a month.

5. Public Health Alert: Measles Outbreak in Texas

Health Secretary Robert F. Kennedy Jr. addresses a measles outbreak in Texas, emphasizing the critical role of the MMR vaccine:

Kennedy wrote in Fox News, “While these vaccines are a personal choice, they can protect not only individual children from measles, but also contribute to widespread immunity.”

He highlighted that many affected individuals were unvaccinated, underscoring the necessity of vaccination to prevent further outbreaks.

6. Figure Skating Community Honors Tragedy Victims

In the wake of a tragic midair collision over the Potomac River, the figure skating community gathered in Washington, D.C., to honor the victims, including 11 young skaters, four coaches, and 13 family members, who were en route from a training camp in Kansas.

The tribute, hosted by Olympic champions Brian Boitano and Christy Yamaguchi, featured performances from over 40 current and retired Team USA skaters. Each participant began by placing a white rose on a ringside table, symbolizing their respect and remembrance.

Desmond Butler reflects:

[13:49]: “While it is important to mourn the lost lives, it's also important to celebrate them.”

The event was sold out and served a dual purpose of honoring the deceased and raising funds for victims' families, first responders, and the US figure skating community. A prominent theme was the call for aviation safety reform, with appeals for Congress to pass bipartisan legislation to prevent future tragedies.

Conclusion

Shemitah Basu wraps up the episode by summarizing the day's key stories, ranging from geopolitical maneuvers and business empires to cultural triumphs and public health issues. The episode provides a comprehensive overview of the interconnectedness of politics, business, and society, offering listeners insightful analysis and diverse perspectives on current events.

Notable Quotes:

Keir Starmer: “The only winner in that exchange is Putin, who's a criminal. So it was a sad day for our country. It was a dumpster fire of diplomacy.” [03:49]
Volodymyr Zelensky: “We are staying in our country, staying strong.” [02:21]
Robert F. Kennedy Jr.: “While these vaccines are a personal choice, they can protect not only individual children from measles, but also contribute to widespread immunity.” (Paraphrased)

This episode of Apple News Today offers a nuanced exploration of Elon Musk’s reliance on government funding, the complexities of international diplomacy, the intersection of politics and culture in Hollywood, and the enduring human spirit in the face of tragedy. Whether you're tuned in or catching up, the comprehensive analysis ensures you’re well-informed on these pivotal issues.