Elon Musk Calls for Privatization of U.S. Postal Service and Amtrak
Billionaire entrepreneur Elon Musk has advocated for the privatization of the United States Postal Service (USPS) and Amtrak, arguing that privatized entities have a stronger incentive for improvement.
Speaking virtually at the Morgan Stanley Technology, Media & Telecom Conference, Musk criticized the state of passenger rail in the U.S., calling Amtrak a “sad situation” compared to the high-speed rail networks in other countries, such as China.
“Amtrak is a sad situation. It’s like, if you’re coming from another country, please don’t use our national rail. It can leave you with a very bad impression of America,” Musk said.
He further asserted that any entity that can be privatized should be, arguing that businesses need the possibility of failure to drive progress.
“I think we should privatize anything that can be privatized, just so you’ve got a feedback loop for improvement,” he stated. “Basically, something’s got to have some chance of going bankrupt, or there’s not a good feedback loop for improvement.”
However, Musk acknowledged that such changes would require congressional action, making privatization a complex process.
Musk’s History with High-Speed Rail Opposition
Musk has previously opposed government-funded rail projects. In 2013, his Hyperloop proposal was reportedly conceived out of frustration with California’s high-speed rail project, which he believed was slow and costly. While the Hyperloop initiative was eventually discontinued, Musk’s broader goal was to highlight alternative solutions and push back against government-led rail initiatives.
Following the 2024 U.S. presidential election, an X account linked to the Department of Government Efficiency—a government division Musk is associated with—posted a list of issues with California’s delayed high-speed rail project, signaling continued scrutiny.
While Musk did not elaborate on privatizing the Postal Service, the idea has been floated before, including by former President Donald Trump during his time in office.
