Connect with us

Business

DOGE Theory

Published

7 minute read

Can Elon Musk and Vivek Ramaswamy’s plan to slash the bureaucracy succeed?

One of the most intriguing developments following Donald Trump’s election victory has been the announcement of Elon Musk and Vivek Ramaswamy’s Department of Government Efficiency, or DOGE. The initiative, which hopes to cut up to $2 trillion from the federal budget, has generated notable excitement, momentum, and memes. The world’s richest man and a successful biotech entrepreneur, Ramaswamy, have revitalized what seemed to be a mostly dormant libertarianism, drawing on the inspiration of Milton Friedman and promising to slash the bureaucracy to the bone. But what are its prospects for real-world success?

Elon Musk is our era’s most gifted entrepreneur, having revolutionized several industries and run multiple major companies. But the private sector operates on radically different principles than the public sector, which has a way of stalling or disarming even the most determined efforts. I foresee three potential impediments to DOGE’s success.

First is the problem of authority. While President-elect Trump has dubbed the effort the “Department of Government Efficiency,” it is not a government department at all. Rather, Musk and Ramaswamy will remain in the private sector and preside over what is, in effect, a blue-ribbon committee providing recommendations to the president and to Congress about potential cuts. In practice, though, blue-ribbon committees are often where ideas go to die. Politicians who feel the need to “do something” about a given problem often establish such committees to create the perception of action, which masks their true desire or, at least, the eventual result: inaction.

DOGE’s challenge will be to translate its recommendations into policy. It is almost certain that an entrepreneur of Musk’s ambition will not be content with writing a report. His and Ramaswamy’s task, then, is to persuade the president and the director of the Office of Management and Budget to enact real (and politically risky) cuts, and, if possible, to persuade Congress to abolish entire departments, such as the Department of Education, in the face of left-wing backlash.

The second problem for Musk and Ramaswamy is public opinion. Libertarians and small-government conservatives have long promised to reduce the size of government; one reason that they have never done so is that federal programs and agencies are generally popular. All of the major federal departments, with the exception of the IRS, the Department of Education, and the Department of Justice, have net-positive favorability numbers. Congressional members, even conservative Republicans, fear that slashing these departments would expose them to savage criticism from the Left and backlash from voters. They know that Americans complain about the size of government in theory but oppose almost all spending cuts in practice—the key paradox that libertarians have been unable to resolve.

Musk and Ramaswamy have repeatedly appealed to the work of Argentinian president Javier Milei, who has dramatically reduced the number of departments and created flashy video clips of himself stripping down organizational charts and yelling, “Afuera!” But what is possible in Argentina, which has been mired in a decades-long economic crisis, may not be achievable in the United States, which is much more stable, and, consequently, may not have the appetite for such dramatic action.

Which brings us to the problem of politics. Sending a rocket into space requires mastery over physics, but cutting government departments requires mastery over a more formidable enemy: bureaucracy. As Musk and Ramaswamy will see, the relationship between would-be reformers and Congress is vastly different from that between a CEO and a board of directors. To succeed, Musk and Ramaswamy must persuade a group of politicians, each with their own interests, to assume a high level of risk.

DOGE’s first task—identifying the budget items to cut—is the easy part. The hard part will be actually cutting them. They will have to convince Congress, which, for nearly 100 years, has refused to reduce the size of government, even when that notion had bipartisan support, as it did during the presidency of Bill Clinton, who promised that “the era of big government is over.”

This does not mean that DOGE cannot succeed. Though there may not be an appetite for a $2 trillion reduction in government spending, there is a hunger for targeted cuts that would strip the federal government of hostile ideologies that have made our institutions dysfunctional and our national life worse. For example, slashing grant funding for critical race theory would likely win support from voters; cutting the budget for USDA meat inspectors would not, and, given opportunity costs, would probably prove unproductive as well.

Perhaps the name of this committee—the Department of Government Efficiency—is also slightly off the mark. The problem is not only about efficiency, which suggests quantity, but about orientation, which implies quality. The federal government has long been captured by ideologies that misdirect its efforts. Simply making the bureaucracy more efficient will not solve that problem. DOGE must first determine what federal spending is worthwhile; from there, it can focus on creating “efficiencies.”

I hope that Musk and Ramaswamy can dispel my pessimism. Political realities have stifled countless reform efforts before now, and DOGE is an enterprise that would be difficult, if not impossible, under normal circumstances. But these are two remarkably talented men; if anyone is capable of shattering the mold, they can.


Please share your ideas, dissents, and thoughts in the comments. In the next newsletter, we will feature the best material in a“comment of the week” section. In the meantime, have a wonderful Thanksgiving.

Leave a comment

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

More from this author

Business

Federal government could save $10.7 billion this fiscal year by eliminating eight ineffective spending programs

Published on

From the Fraser Institute

By Jake Fuss and Grady Munro

The federal government could save up to $10.7 billion this fiscal year by ending eight ineffective spending programs, finds a new report published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“Canada’s federal finances have deteriorated markedly over the last decade, largely due to a rapid run up in spending, deficits and debt,” said Jake Fuss, director of fiscal studies at the Fraser Institute.

“As previous governments have done before, a comprehensive line-by-line review of Ottawa’s spending is required to identify those programs or initiatives that are not fulfilling their purpose, or are not providing good value for tax dollars.”

The study, Identifying Potential Savings from Specific Reductions to Federal Government Spending, highlights eight federal programs where government spending
does not appear to be accomplishing its stated goals, or where government funding is unnecessary:

– $1.5 billion — Regional Development Agencies
– $1.7 billion — Federal support for journalism
– $587.6 million — Federal support for electric vehicle production and purchases
– $340.0 million — Two Billion Trees program
– $3.5 billion — Canada Infrastructure Bank
– $2.4 billion — Strategic Innovation Fund
– $202.3 million — Global Innovation Clusters
– $530.0 million — Green Municipal Fund

Critically, eliminating these eight programs could reduce federal government spending by $10.7 billion in 2024-25: “Though just a starting point, a savings of $10.7 billion would meaningfully improve federal finances and help Ottawa put the country’s finances back on a stable footing,” Fuss said.

This study is part of a larger series of collected essays on federal policy reforms, Federal Blueprint for Prosperity, edited by Fraser Institute Senior Fellows Jock Finlayson and Lawrence Schembri.

The essay series, also released today, details federal policy reforms in health care, environmental and energy regulations, tax policy, immigration, housing, trade, etc. to increase prosperity for Canadians and improve living standards.

To learn more and to read the entire collected essay series, visit www.fraserinstitute.org.

 

Identifying Potential Savings from Specific Reductions in Federal Government Spending

  • A marked deterioration in the state of Canada’s finances, driven largely by rapidly increasing spending, has created a need to review federal government spending to identify programs that are inefficient and/or ineffective. This study highlights eight spending areas that have easily identifiable problems, and should be a starting point for a more comprehensive review.
  • The eight spending areas identified are: Regional Development Agencies, Government Supports for Journalism, Federal Support for Electric Vehicle Production and Purchases, the 2 Billion Trees Program, the Canada Infrastructure Bank, the Strategic Innovation Fund, the Global Innovation Clusters, and the Green Municipal Fund.
  • These programs represent instances where government spending does not appear to be accomplishing the stated goals, and where government involvement is questionable.
  • For instance, despite research suggesting business subsidies do little to promote widespread economic growth, the seven regional development agencies report vague objectives and results that make it difficult for government officials or Parliamentarians to assess the efficacy of the spending.
  • Since the Canada Infrastructure Bank was first established in 2017, it has approved up to $13.2 billion in investments across 76 projects, but only two projects have been completed. These projects represent just $93.2 million (or 0.71 percent) of the total approved investments.
  • The federal government could save $10.7 billion in 2024–25 alone if it eliminated spending in these eight areas. This amount would be impactful in improving the state of Canada’s finances, and more savings could be achieved through a comprehensive review of all spending.
Continue Reading

Business

Musk vs. the bureaucracy vs. Congress: Who has the power to cut spending?

Published on

From The Center Square

By 

The Trump administration’s all-of-Washington shake-up has resulted in hundreds of lawsuits and cries of a “constitutional crisis,” with Elon Musk’s Department of Government Efficiency at the heart of many complaints from Democrats.

Critics of the department say its on shaky legal footing and have questioned whether Musk’s role violates the U.S. Constitution, as higher-ranking government officials often must be appointed by the president and confirmed by the Senate. The White House has maintained that, despite Musk being the public face of the department and seemingly directing its activities, he is only a “special government employee.” As such, he isn’t subject to a Senate confirmation.

But legal experts disagree on Musk’s role and authority within the federal government.

The Pacific Legal Foundation’s Michael Poon works for the foundation’s separation of powers practice group. Now that the White House has revealed the identity of the DOGE’s administrator as Amy Gleason, a healthcare technology executive who served under Presidents Donald Trump and Joe Biden, Poon likened Musk’s role to that of a “DOGE czar,” or even the president’s chief of staff – neither of which are senate-confirmed positions. Because Musk isn’t the department’s administrator, he doesn’t seem to have any formal authority, according to Poon.

“Agency heads have the power to ignore him because he doesn’t actually have formal power himself,” Poon continued, “but they probably listen because Musk is understood to have the president’s confidence,” similar to other positions Poon mentioned, including Trump’s border czar, Tom Homan, who also isn’t Senate confirmed but works side by side with the Department of Homeland Security. whose secretary, Kristi Noem, is Senate-confirmed.

“This kind of arrangement makes Musk informally powerful, but the power comes from the expectation that the president would back him, not any power that is, sort of, inherent in his position,” Poon said.

While Poon doesn’t think Musk’s role violates any constitutional requirements, he does appreciate the sudden interest the public is taking in the role of unelected federal officials in general. But since their function in the federal government has developed over many decades, it’s unlikely that anything resulting from the DOGE-Musk controversy would go very far in solving the problem.

“It’s appropriate to be scrutinizing of unelected officials and the power that they wield,” Poon said. “But it’s a concern that has been put to the side for the last hundred years, over which both major parties have worked to weaken these protections against unelected officials.”

If Americans want less power and more guardrails for unelected officials, it will take time to achieve, according to Poon.

“I don’t think that, as the current case law stands, Elon Musk’s role contravenes the Constitution, but if we think those protections should be strengthened…  that’s something that takes a concerted effort and it can’t vary depending on who is in control of the executive branch,” Poon said.

Thomas Berry, director of the Cato Institute’s Robert A. Levy Center for Constitutional Studies, finds the lack of transparency around DOGE and Musk’s role troubling.

“I think there’s very serious concerns about what exactly is happening with DOGE,” Berry said.

A lot of concerns with DOGE have to do with the Appointments Clause, which is the basis for Senate confirmations of presidential appointees and creates a system of accountability.

“The Appointments Clause of the Constitution says that the final decision maker on a lot of issues needs to be either the president or someone appointed by the president and confirmed by the Senate,” Berry said. “When the public perception is that Musk or anyone who’s not Senate-confirmed is making these decisions, you don’t have any elected person to blame.”

Even if the administration were to eventually reveal that the president approved all of Musk’s actions, the lack of transparency now is problematic for the public, according to Berry.

As for questions about Trump’s authority to establish DOGE and Musk’s role within it, President of the Liberty Justice Center Jacob Huebert thinks they’re unfounded.

“Article II of the Constitution gives all executive power to the president,” Huebert said. “As long as the president has ultimate decision-making authority here, I don’t see any problem with that.”

He applauds what he sees as Trump’s revision of the executive branch, bringing it closer to what it was intended to be.

“It’s the president deciding how the executive branch is going to run, which is very much the opposite of how it has long been run, where the bureaucracy is kind of leading things even though the bureaucracy doesn’t have any constitutional authority whatsoever,” Huebert said.

As far as Trump’s efforts to cut government spending through DOGE, Huebert’s unsure how it will play out, though he thinks it’s a valiant aim. The Constitution grants Congress power over the government’s purse, and some lawsuits are challenging the president’s attempts to cut spending that Congress has already appropriated. Even if DOGE were able to get federal agencies to cut their budgets and the courts ruled in their favor, Huebert thinks it will be difficult to motivate Congress to pass significantly smaller budgets.

“That to me seems like the biggest challenge for DOGE if part of the goal is to cut spending because Congress really likes to spend, including most of the Republicans in Congress, and the reasons that they’ve had to spend so much money have not gone away,” Huebert said. “All the incentives to spend, or most of them, are still there. So I don’t know how Trump or Elon Musk, if they want to bring it under control, can bring it under control.”

Continue Reading

Trending

X