President-elect Donald Trump has enlisted Elon Musk to head up the newly created “Department of Government Efficiency” (DOGE)—nope, not Dogecoin (DOGE-USD), but close enough! This department is tasked with overhauling government spending and cutting waste, with Musk aiming to bring his cost-cutting magic from Silicon Valley straight to Washington. Announced on November 12, the initiative will see Musk, along with entrepreneur Vivek Ramaswamy, driving efforts to reduce federal bureaucracy and slash wasteful expenditures. Trump has positioned Musk as the face of this effort, touting him as the “Secretary of Cost-Cutting” and promising that Musk will “send shockwaves through the system” by eliminating inefficiencies and trimming down federal agencies.
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According to Forbes, the department’s work will be completed no later than July 4, 2026—the 250th anniversary of U.S. independence—suggesting that this ambitious initiative will only span about half of Trump’s term.
Musk Promises “Shockwaves” Throughout the System
Known for his brave moves with Tesla (TSLA), SpaceX, and Twitter (now X), Musk has long advocated for less government interference. Trump quoted Musk saying that this new department will “send shockwaves through the system,” as it tackles government waste. Musk’s reputation for aggressive cost-cutting and his public image as the “Secretary of Cost-Cutting” have fueled both excitement and skepticism about his role in Trump’s administration.
At a recent rally, Musk declared, “Your money is being wasted, and the Department of Government Efficiency is going to fix that.” The entrepreneur pledged transparency, teasing plans for a “leaderboard” to showcase “insanely dumb spending” of taxpayer dollars. While Musk’s supporters are energized by the potential for reform, critics, like former Treasury Secretary Larry Summers, argue that Musk’s proposed $2 trillion cuts are “mathematically impossible” given existing spending commitments.
Ramaswamy’s “SHUT IT DOWN” Mantra Returns
Ramaswamy’s appointment is no less controversial. Known for his anti-bureaucracy stance during his presidential run, he frequently used the slogan “SHUT IT DOWN” when referring to federal agencies like the FBI and Department of Education. Now, he’ll work alongside Musk to target inefficiencies in the $6.5 trillion U.S. budget. “This will be the perfect gift to America on the 250th Anniversary of The Declaration of Independence,” Trump said, setting a completion goal for the project by July 4, 2026.
Can They Pull Off $2 Trillion in Cuts?
The numbers are ambitious, if not downright daunting. While Trump has faith in Musk’s cost-cutting abilities, experts remain unconvinced. Glenn Hubbard, former dean of Columbia University’s Business School, and Marc Goldwein from the Committee for a Responsible Federal Budget shared their views on the feasibility of Musk’s cost-cutting goals at The Economic Club of New York. According to CNN, Hubbard called Musk’s $2 trillion target “very challenging” without addressing major federal programs, while Goldwein warned that targeting only waste and abuse often serves as “an excuse to do nothing.”
Union Outcry and Conflict of Interest Concerns
Adding fuel to the fire, unions representing federal workers have spoken out against the creation of DOGE, calling it a smokescreen for self-interest. Everett Kelley, President of the American Federation of Government Employees, didn’t hold back, stating, “Elon Musk and Donald Trump care about one thing: lining their own pockets,” reported CNN. Critics argue that Musk’s leadership of DOGE could lead to conflicts of interest, especially given his companies’ lucrative government contracts, including those held by SpaceX.
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