480: Trump, DOGE, and the Economy

I have to admit, I can’t wait to see what Elon Musk and Vivek Ramaswamy do with their proposed Department of Government Efficiency (DOGE). 

Beyond potentially creating a big pump for Elon’s beloved crypto favorite, Doge Coin, the idea has generated significant discussion about its potential impact on the federal government.

As co-leaders of this initiative under President-elect Trump’s administration, Musk and Ramaswamy have outlined ambitious goals for reducing government spending and streamlining operations.

The DOGE aims to cut $500 billion in annual federal expenditures, targeting what they claim are unauthorized or inefficient programs. This represents a significant portion of discretionary spending and could have far-reaching implications for various agencies and programs.

One of the most controversial aspects of their plan is the proposed reduction of the federal workforce. DOGE intends to implement “mass head-count reductions across the federal bureaucracy”. Their strategies include:

1. Offering early retirement incentives and voluntary severance packages
2. Requiring federal employees to work in-office five days a week, potentially leading to voluntary resignations
3. Identifying the minimum number of employees required for agencies to perform essential functions

Musk and Ramaswamy also plan to focus on regulatory reform, aiming to eliminate what they consider unnecessary or overreaching regulations. They’ve suggested consolidating federal agencies and implementing advanced technologies to automate routine tasks.

However, the initiative faces significant challenge. Many proposed changes would require congressional approval. And while Republicans will control both chambers of congress, federal employee unions and lawmakers may oppose drastic cuts to government programs and workforce.

And while Musk has been perhaps one of the most efficient entrepreneurs in the history of mankind, the size and complexity of the federal government will make rapid, large-scale changes difficult to implement.

Either way, I’m excited to see whether Musk and Ramaswamy can translate their private sector experience into meaningful government reform.

My guest on Wealth Formula Podcast is an economist and Washington insider who has worked for multiple well known politicians. He has a unique take on Musk’s vision as well as the rest of the agenda of the incoming Trump administration.

This is a fascinating conversation which you will not want to miss!