Part 2/4:
"If you have a cost-plus contract what that is is you agree to use services for the government. They give you a price and you go out and find a lot of subcontractors to do the work for you. The subcontractors, the longer they take and the more they cost the better it is for you because you are getting 12% off the top. You want things to cost more as a prime contractor."
Baron is hopeful that Musk can apply the same focus and work ethic he brings to Tesla and SpaceX to help improve government processes and regulations. He believes Musk understands where government spending is "unusual" and can help find ways to correct it.
Shifting Political Allegiances
Baron, who has been a longtime Democrat, says he no longer feels at home in the party. He disagrees with the Democratic party's policies, which he sees as increasingly anti-business and focused on "inclusion" rather than rewarding hard work and talent.
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