The Illusion of Savings: Why the Trump-Musk DOGE Initiative Won’t Fix America’s Budget

Elon Musk's Department of Government Efficiency (DOGE), launched under President Donald Trump, claims to be slashing U.S. federal spending by eliminating fraud, cutting wasteful contracts, and shutting down entire agencies. Musk has promised $2 trillion in annual savings, yet government spending has remained virtually unchanged since Trump took office.

Despite DOGE’s high-profile cuts—including the closure of USAID and reductions in diversity and inclusion programs—official Treasury data contradicts Musk’s claims, showing that federal spending has actually increased slightly, averaging $30 billion per day, up from $26 billion under Biden.

One major challenge is that only about 10% of the budget is realistically within DOGE’s control. The majority of federal expenditures (about two-thirds) are mandatory spending on Social Security, Medicare, and Medicaid, while another 10% is allocated to interest on national debt. Even if Musk eliminated all government fraud—estimated at $233 billion to $521 billion annually—he would still fall far short of his savings target.

The most tangible effect of DOGE so far has been mass government layoffs, leaving thousands of employees uncertain about their futures. While this may appeal to Musk's and Trump's anti-bureaucracy stance, it has yet to translate into real fiscal savings.

So, what are the economic consequences of the Trump/Musk DOGE initiative?

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Trump and Musk: The Dynamic Duo of Deconstruction

Donald Trump's latest brainwave about revisiting American expansionism caused the usual media meltdown, with everyone clutching their pearls over comments about Canada, Greenland, and the Panama Canal. By Wednesday afternoon, his aides were backpedaling faster than a unicyclist in reverse, trying to erase Trump's wild talk about a US military takeover of the Gaza Strip.

Meanwhile, under the radar, Elon Musk was playing the real-life version of "SimGovernment," dismantling parts of the American bureaucracy like a kid taking apart a LEGO set. Musk, who apparently decides his own conflict of interest status (because why not?), has shifted his sights from USAID and the Treasury to the agencies handling Medicare and Medicaid—programs that keep a significant chunk of the population from turning into real-life Oliver Twists asking for more.

Musk’s grand plan to close down federal offices and slash funding has sparked protests nationwide, with people chanting, "Save our benefits, Musk!" This South African entrepreneur seems to think he's the new Noah, deciding which federal workers get a spot on the lifeboat of employment. All the while, the Republican Congress is sitting back, sipping tea, doing nothing, because apparently, they're cool with Trump playing "King of the Hill" with the government.

But fear not! The courts are still in the game, throwing legal wrenches into Trump's plans like they're playing Whack-A-Mole with executive overreach. Initial rulings are slamming down on Trump, the first convicted felon to call the White House home, but legal eagles are whispering that this might all be part of the grand scheme.

Lawsuits are inevitably heading to the Supreme Court, where the conservative supermajority, who last year decided presidents should have immunity like superheroes, might just give Trump the keys to the kingdom. Or, you know, more power than he already has.

My Musings:

This scenario paints a picture of political theater where the antics of high-profile figures like Trump and Musk overshadow the real, impactful changes to government operations. The humor here underscores the absurdity of such actions, but it also highlights a serious concern: the erosion of checks and balances in government. While the focus is often on the sensational comments or actions, the quiet, systematic changes beneath could have long-lasting effects on public services and governance. It's a reminder that while we watch the show, we should also keep an eye on the script being rewritten in the background.