TAKE OVER MUSK’S EMPIRE? Clinton Labor Secretary Urges Democrats to Nationalize SpaceX and Starlink
Former Clinton administration Labor Secretary Robert Reich is urging Democrats to launch investigations into Elon Musk and begin preparing for a possible government takeover of SpaceX and Starlink, arguing that the billionaire has accumulated excessive economic and political influence.
Reich outlined his proposal during the October 24 episode of his podcast, “The Coffee Klatch with Robert Reich,” calling on Democrats to pursue aggressive oversight of Musk’s businesses if they regain control of Congress in the November 3 midterm elections.
“When I say defund Musk, you know, 75% of his wealth is dependent on taxpayers who are buying Starlink systems for the Department of Defense,” Reich said.
The former labor secretary offered no supporting documentation for his claim that three-quarters of Musk’s fortune relies on taxpayer spending. SpaceX, however, has received billions of dollars in federal contracts through agreements with NASA, the Pentagon and other government agencies.
Reich went considerably further than proposing congressional investigations, suggesting that Democrats should develop plans to place Musk’s space exploration and satellite communications businesses under federal ownership.
“If we have a Democratic administration — and the Democrats ought to be starting this not just with oversight hearings, but also starting laying the groundwork for nationalizing Starlink and SpaceX,” Reich said. “It should be a public corporation. We should not ever have that kind of power in one person’s hands.”
His proposal would represent an extraordinary expansion of federal control over private industry. SpaceX has become a major contractor for American space missions and national security operations, while Starlink supplies satellite internet service to customers, businesses and government agencies around the world.
Musk responded sharply on October 25 after conservative commentator Collin Rugg circulated a video clip of Reich’s remarks on X.
“Stealing companies is a serious crime. Prison for Reich,” Musk wrote.
Reich also predicted that a Democratic victory in either chamber of Congress would bring intensified examination of Musk’s federal contracts, political activities and corporate operations.
“He knows that if the Democrats take over the House and possibly the Senate, one of the things they are going to be doing is focusing on Elon Musk. I mean, he’s really going to be targeted, and he knows it, and he’s going to be using his 360 million followers or 260 million followers on X to give him a buttress against that.”
The dispute has been fueled in part by controversy surrounding SpaceX’s satellite services in Ukraine. Musk recently acknowledged that his company restricted certain uses of Starlink, saying Ukrainian forces had violated service terms by employing the technology for offensive drone operations. Ukrainian officials disputed his explanation, while lawmakers from both parties sought answers about the restrictions and their impact on military operations.
On October 27, Reich published another statement defending his position and rejecting Musk’s demand that he be imprisoned. He accused the billionaire of exercising excessive influence over government policy and reiterated his support for reducing federal reliance on Musk’s companies.
Reich has also advocated reviewing government contracts, challenging what he considers monopolistic business practices and increasing taxes on extreme wealth. He argues that Musk’s substantial political spending, combined with his companies’ role in national security, creates an unacceptable concentration of private power.
The Pentagon’s inspector general has meanwhile declined a bipartisan request from senators to investigate the Ukraine satellite restrictions, indicating that the Air Force was better positioned to examine the matter. The decision has drawn criticism from lawmakers seeking independent scrutiny.
