"Econ 102" with Noah Smith and Erik Torenberg Elon's Real Goal at DOGE & How to Fix the Debt
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Feb 12, 2025 Dive into the intriguing debate on Elon's initiative to cut government waste through 'Doge', revealing its ideological underpinnings aimed at reducing 'woke' policies. The discussion sheds light on soaring interest costs, the challenges of measuring government efficiency, and the impact of austerity on the middle class. Explore the complexities of healthcare spending and the hidden costs of subsidies. The hosts also tackle the future of Social Security and the potential for cuts in healthcare, emphasizing the balance between fiscal responsibility and social programs.
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DOGE's Real Goal
- Noah Smith believes Elon Musk's Department of Government Efficiency (DOGE) initiative isn't solely about cost-cutting.
- It's an ideological project aimed at reducing "woke" initiatives within the government.
Government Waste
- Billions of dollars are lost in the government system, but it's a small fraction of the trillions handled.
- Even fraud isn't always wasteful, like covert weapons programs hidden within aid packages.
The Debt Problem
- Rising interest rates increase the cost of rolling over existing debt, leading to historically high interest costs.
- This necessitates either austerity measures, including tax increases and spending cuts, or risking higher inflation.