YEREVAN (CoinChapter.com) — Donald Trump recently appointed Elon Musk and Vivek Ramaswamy to head the new Department of Government Efficiency (DOGE), sparking a surge in the DOGE memecoin by 87.77%.
This department aims to identify and cut government waste and streamline federal spending. Trump’s statement emphasized their role in dismantling unnecessary bureaucracy, reducing federal costs, and restructuring federal agencies. Musk’s involvement, given his extensive ties with government contracts, has already prompted questions about potential conflicts of interest.
The department’s purpose will be to operate “from outside the government” and will propose strategies to Congress for cost reductions. Trump stated that Musk and Ramaswamy would drive a thorough approach to government waste, with Musk commenting,
“This will send shockwaves through the system.”
Ramaswamy, known for his critical views on federal agencies, also reinforced his stance on X with his campaign slogan, “SHUT IT DOWN.”
Budget Cuts to Reach $2 Trillion Target
Trump’s government efficiency plans involve developing a comprehensive plan to reduce improper payments and fraud within six months, targeting savings of $2 trillion. Musk, named the “Secretary of Cost-Cutting” by Trump, stated that significant budget cuts are possible. At a rally, Musk declared,
“Your money is being wasted, and we will fix that.”
This also aligns with Trump’s earlier remarks that the department would focus on substantial savings, addressing federal inefficiencies and excess spending across various sectors.
Experts question whether the $2 trillion goal is realistic. Speaking at The Economic Club of New York, former Treasury Secretary Larry Summers said that Elon Musk might struggle to cut even $200 billion. He pointed to strict budget constraints as a major hurdle. Glenn Hubbard, former dean of Columbia Business School, shared similar concerns. He explained that deep cuts would be hard to achieve if Social Security and defense spending remain protected. The Treasury Department reported that the federal government spent $6.8 trillion in fiscal 2024.
Musk’s Government Efficiency Plan Promises Transparency, Raises Concerns Among Federal Workers
In August, Musk introduced the idea of a Department of Government Efficiency on X, promising public transparency by sharing the department’s actions online. On Tuesday, he reiterated his commitment, suggesting a “leaderboard” to highlight wasteful spending. Trump stated that the department’s work will end by July 4, 2026, in time for America’s 250th anniversary of the Declaration of Independence.
Specifically, federal workers and their unions have raised concerns. Everett Kelley, president of the American Federation of Government Employees, criticized the commission. He suggested that Elon Musk and Donald Trump are putting their own interests above genuine government efficiency. Kelley warned that federal employees, already expecting cuts, could face a tougher job market in Trump’s second term.
Above all, to effectively reduce government waste, the efficiency commission would need wide authority, according to Marc Goldwein from the Committee for a Responsible Federal Budget. This authority would allow them to review and suggest changes to major federal programs like Social Security and Medicare.
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