Connect with us
[bsa_pro_ad_space id=12]

Business

DOGE Must Focus On Big Picture To Achieve Big Change

Published

7 minute read

 

From the Daily Caller News Foundation

By Jenny Beth Martin

President-elect Donald Trump’s new Department of Government Efficiency (DOGE) is wasting no time in laying the groundwork for its effort to cut the size and scope of government. That Elon Musk  and Vivek Ramaswamy are the right men to lead this effort is beyond doubt — Musk famously slashed the workforce at Twitter after he bought it and Ramaswamy made shrinking the federal workforce the centerpiece of his campaign for president a year ago.

They know how to find cost savings, and they have shown they are not afraid to do so.

Visiting with congressional Republicans last week, Musk and Ramaswamy even declared they would be keeping a “naughty and nice” list of those who work with them to save taxpayer money and those who do not.

To that end — because who, especially at this time of year, doesn’t want to be on a “nice” list? — here are some thoughts.

First, they are going to have to look at the big picture. They won’t find the $2 trillion Musk pledged to save by focusing on the old standby, “waste, fraud, and abuse.” Yes, they are certainly going to find plenty of waste, fraud, and abuse in the Government Accountability Office (GAO) reports their staff will review, but that will not be enough.

To find the big savings, they are going to have to shrink not just the size of the federal government, but its scope. The federal government is not huge just because it spends money inefficiently, it is huge because it is doing things it has no business doing.

Second, they are going to have to take advantage of the fact that much of that huge government was never specifically authorized by the Congress. The federal behemoth was created by the mass of alphabet soup executive branch agencies that have for decades been imposing regulations that have the force of law, even though the Congress never approved them.

Reversing that is going to require taking a chain saw to federal regulations. And we will need a proportionally reduced federal workforce to match the reduced federal regulatory regime. That should not be a problem; huge numbers of federal employees still have not come back to work in their offices, even though the COVID-19 crisis ended years ago. The DOGE should recommend that any federal employee who refuses a directive to come back to work in the office should be terminated. That will save taxpayer money, too — a 10% cut in the federal workforce would yield about $40 billion in savings every year.

Third, recognize that to make permanent change, executive orders will not be enough — because executive orders can be reversed by the next president. Laws, on the other hand, can only be overturned with new action by the Congress and the president. That makes laws tougher to overturn.

One of the legislative changes that would serve the long-term interest in getting the federal government under control would be passage of the REINS Act, a proposed law that would require any federal agency that wanted to impose a new regulation that would have a significant impact on the economy to first gain approval from Congress in the form of an affirmative vote in both houses, and then the signature of the president. As I said when discussing this on my recent podcast with American Commitment’s Phil Kerpen, ‘Imagine that — Congress votes on something before it becomes law!”

A second legislative change that could help make a major difference would be reform of the civil service laws that govern the federal workforce. Musk and Ramaswamy are going to recommend significant elimination of positions in the federal workforce. Under the current system, it is significantly more difficult to remove employees than it is in the private sector — even employees who engage in insubordination or flagrantly breaking rules. And before you retort, “but the tradeoff they agree to, and that we must honor, is that civil service employees accept lower compensation in exchange for that greater job security,” a recent analysis by the Cato Institute shows that “the average federal civilian worker made $157,000 in wages and benefits in 2023, much higher than the average U.S. private sector wages and benefits of $94,000.”

Greater job security on top of higher compensation? That wasn’t the deal.

Rep. Barry Loudermilk (R-Ga.) introduced his MERIT Act in the last Congress. It was a proposed law that would have strengthened agency management’s power to remove poor employees, expedited timelines and made other reforms to bring the system closer to the private-sector model. Something along those lines could be extremely helpful as federal managers move to meet their reduced workforce needs.

The DOGE enterprise begins with broad public support — a recent poll conducted by McLaughlin & Associates for the organization I lead, Tea Party Patriots Action, shows that 71% of Americans support the creation of DOGE and 65% support firing government employees who do not return to their offices to work.

Musk and Ramaswamy have taken on a huge task, and they recognize the opportunity before them. By focusing on big-picture efforts to shrink the size and the scope of the federal government, they can help restore it to its constitutional moorings, with government officials in a smaller, less intrusive, less expensive government that is more responsive to the needs, desires, and authority of the citizens on whose behalf and in whose name they toil.

Jenny Beth Martin is honorary chairman of Tea Party Patriots Action.

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Business

Worst kept secret—red tape strangling Canada’s economy

Published on

From the Fraser Institute

By Matthew Lau

In the past nine years, business investment in Canada has fallen while increasing more than 30 per cent in the U.S. on a real per-person basis. Workers in Canada now receive barely half as much new capital per worker than in the U.S.

According to a new Statistics Canada report, government regulation has grown over the years and it’s hurting Canada’s economy. The report, which uses a regulatory burden measure devised by KPMG and Transport Canada, shows government regulatory requirements increased 2.1 per cent annually from 2006 to 2021, with the effect of reducing the business sector’s GDP, employment, labour productivity and investment.

Specifically, the growth in regulation over these years cut business-sector investment by an estimated nine per cent and “reduced business start-ups and business dynamism,” cut GDP in the business sector by 1.7 percentage points, cut employment growth by 1.3 percentage points, and labour productivity by 0.4 percentage points.

While the report only covered regulatory growth through 2021, in the past four years an avalanche of new regulations has made the already existing problem of overregulation worse.

The Trudeau government in particular has intensified its regulatory assault on the extraction sector with a greenhouse gas emissions cap, new fuel regulations and new methane emissions regulations. In the last few years, federal diktats and expansions of bureaucratic control have swept the auto industrychild caresupermarkets and many other sectors.

Again, the negative results are evident. Over the past nine years, Canada’s cumulative real growth in per-person GDP (an indicator of incomes and living standards) has been a paltry 1.7 per cent and trending downward, compared to 18.6 per cent and trending upward in the United States. Put differently, if the Canadian economy had tracked with the U.S. economy over the past nine years, average incomes in Canada would be much higher today.

Also in the past nine years, business investment in Canada has fallen while increasing more than 30 per cent in the U.S. on a real per-person basis. Workers in Canada now receive barely half as much new capital per worker than in the U.S., and only about two-thirds as much new capital (on average) as workers in other developed countries.

Consequently, Canada is mired in an economic growth crisis—a fact that even the Trudeau government does not deny. “We have more work to do,” said Anita Anand, then-president of the Treasury Board, last August, “to examine the causes of low productivity levels.” The Statistics Canada report, if nothing else, confirms what economists and the business community already knew—the regulatory burden is much of the problem.

Of course, regulation is not the only factor hurting Canada’s economy. Higher federal carbon taxes, higher payroll taxes and higher top marginal income tax rates are also weakening Canada’s productivity, GDP, business investment and entrepreneurship.

Finally, while the Statistics Canada report shows significant economic costs of regulation, the authors note that their estimate of the effect of regulatory accumulation on GDP is “much smaller” than the effect estimated in an American study published several years ago in the Review of Economic Dynamics. In other words, the negative effects of regulation in Canada may be even higher than StatsCan suggests.

Whether Statistics Canada has underestimated the economic costs of regulation or not, one thing is clear: reducing regulation and reversing the policy course of recent years would help get Canada out of its current economic rut. The country is effectively in a recession even if, as a result of rapid population growth fuelled by record levels of immigration, the GDP statistics do not meet the technical definition of a recession.

With dismal GDP and business investment numbers, a turnaround—both in policy and outcomes—can’t come quickly enough for Canadians.

Matthew Lau

Adjunct Scholar, Fraser Institute
Continue Reading

Business

‘Out and out fraud’: DOGE questions $2 billion Biden grant to left-wing ‘green energy’ nonprofit`

Published on

From LifeSiteNews

By Calvin Freiburger

The EPA under the Biden administration awarded $2 billion to a ‘green energy’ group that appears to have been little more than a means to enrich left-wing activists.

The U.S. Environmental Protection Agency (EPA) under the Biden administration awarded $2 billion to a “green energy” nonprofit that appears to have been little more than a means to enrich left-wing activists such as former Democratic candidate Stacey Abrams.

Founded in 2023 as a coalition of nonprofits, corporations, unions, municipalities, and other groups, Power Forward Communities (PFC) bills itself as “the first national program to finance home energy efficiency upgrades at scale, saving Americans thousands of dollars on their utility bills every year.” It says it “will help homeowners, developers, and renters swap outdated, inefficient appliances with more efficient and modernized options, saving money for years ahead and ensuring our kids can grow up with cleaner, pollutant-free air.”

The organization’s website boasts more than 300 member organizations across 46 states but does not detail actual activities. It does have job postings for three open positions and a form for people to sign up for more information.

The Washington Free Beacon reported that the Trump administration’s Department of Government Efficiency (DOGE) project, along with new EPA administrator Lee Zeldin, are raising questions about the $2 billion grant PFC received from the Biden EPA’s National Clean Investment Fund (NCIF), ostensibly for the “affordable decarbonization of homes and apartments throughout the country, with a particular focus on low-income and disadvantaged communities.”

PFC’s announcement of the grant is the organization’s only press release to date and is alarming given that the organization had somehow reported only $100 in revenue at the end of 2023.

“I made a commitment to members of Congress and to the American people to be a good steward of tax dollars and I’ve wasted no time in keeping my word,” Zeldin said. “When we learned about the Biden administration’s scheme to quickly park $20 billion outside the agency, we suspected that some organizations were created out of thin air just to take advantage of this.” Zeldin previously announced the Biden EPA had deposited the $20 billion in a Citibank account, apparently to make it harder for the next administration to retrieve and review it.

“As we continue to learn more about where some of this money went, it is even more apparent how far-reaching and widely accepted this waste and abuse has been,” he added. “It’s extremely concerning that an organization that reported just $100 in revenue in 2023 was chosen to receive $2 billion. That’s 20 million times the organization’s reported revenue.”

Daniel Turner, executive director of energy advocacy group Power the Future, told the Beacon that in his opinion “for an organization that has no experience in this, that was literally just established, and had $100 in the bank to receive a $2 billion grant — it doesn’t just fly in the face of common sense, it’s out and out fraud.”

Prominent among PFC’s insiders is Abrams, the former Georgia House minority leader best known for persistent false claims about having the state’s gubernatorial election stolen from her in 2018. Abrams founded two of PFC’s partner organizations (Southern Economic Advancement Project and Fair Count) and serves as lead counsel for a third group (Rewiring America) in the coalition. A longtime advocate of left-wing environmental policies, Abrams is also a member of the national advisory board for advocacy group Climate Power.

Continue Reading

Trending

X