On July 5, 2025, Elon Musk announced the formation of the America Party, a new U.S. political party aimed at challenging the current two-party system, following disagreements with President Donald Trump over his $3.3 trillion spending bill. The announcement came after a poll where approximately 5.6 million people voted on X with 80% in support. Supporters see it as a bold move to disrupt a broken political system, while critics, including Trumps base, argue it could fracture the Republican party.
Musk’s Motivation
Musk’s decision to launch the America Party was driven by his opposition to Trump’s “Big, Beautiful Bill,” which he claims will increase the U.S. deficit by $3.3 trillion and bankrupt the country. He has criticized the two-party system as a “uniparty” that fails to represent most Americans, citing a poll where 80.4% of 5.6 million respondents supported a new party. Musk aims to restore “freedom” by focusing on fiscal responsibility and challenging lawmakers who support excessive spending.
Party Strategy
The America Party plans to target a small number of congressional seats, 2 or 3 Senate seats and 8 to 10 House districts, to act as a swing vote in a closely divided Congress. Musk suggested this approach could influence contentious legislation to reflect the “true will of the people.” The party supports policies like small business growth, free speech, and space exploration, aligning with Musk’s business interests. However, it has not yet been registered with the Federal Election Commission.
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My Thoughts
Two things can be true at once. First, from a Keynesian perspective, increasing government spending during a period of economic growth—like the one we’re in now—is unwise. Many of you are business owners, so think of it this way: you save during booms so you can spend during downturns. The same logic applies here. That said, I still support the president and hope the theory doesn’t hold true in this case. Real-world decisions often involve variables we can’t see—such as the $1 trillion in deals Trump is able to secure in a single trip to the Middle East. He may be counting on his own ability to generate revenues, which if you’re Trump, would be a fair bet to take.
Second, while fiscal responsibility is critical, starting a third party is stupid… Instead of dividing the Republican base, it would be more strategic to rally behind fiscally conservative candidates, like Thomas Massie or Senator Rand Paul, who already challenge reckless spending from within. I think his idea was to create a third-party, but what will actually end up happening is that he will have to abide by the current reality and turn his America organization into an organization that supports fiscal conservatives (and his other business interests like EV’s).
