Musk put spotlight on federal spending, but cut less than he wanted
Elon Musk, whose last day spearheading the DOGE was Friday, slashed his goal for savings from USD 2 trillion to USD 1 trillion to finally only USD 150 billion.
PTI
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Elon Musk
Washington, 31 May
Elon Musk's effort to
dramatically cut government spending is expected to fall far short of his grand
early pronouncements, and perhaps even his most modest goals.
It didn't have to be that way.
According to experts across the ideological spectrum, a major
problem was a failure to deploy people who understood the inner workings of
government to work alongside his team of software engineers and other
high-wattage technology talent.
Even that might not have achieved Musk's original target of USD 2
trillion, which is roughly the size of the entire federal deficit.
Musk, whose last day spearheading the Department of Government Efficiency (DOGE) was Friday, slashed his goal for savings from USD 2 trillion
to USD 1 trillion to finally only USD 150 billion.
The current DOGE results put Musk's efforts well short of former
president Bill Clinton's initiative to streamline the federal bureaucracy,
which saved the equivalent of USD 240 billion by the time his second term
ended.
The effort also reduced the federal workforce by more than 400,000
employees.
It also seems clear that Musk was unable to change the overall
trajectory of federal spending, despite eliminating thousands of jobs.
The Yale Budget Lab, in an analysis of Treasury data, shows money
is flowing out of government coffers at an even faster pace than the previous
two years.
“It was an impossible goal they were trying to achieve. They kept
lowering the standards of success," Alex Nowrasteh, vice-president for
economic and social policy studies for the Cato Institute, a libertarian
think-tank, said.
"A more knowledgeable DOGE team wouldn't have made insane
promises that would be impossible to keep. They set themselves up for failure.”
At a White House event with Trump on Friday, Musk said his team
would stay in place and renewed the goal of reaching at least USD 1 trillion in
cost savings.
“This is not the end of DOGE, but really the beginning. The DOGE
team will only grow stronger over time. It's permeating throughout the
government,” Musk said in the Oval Office, wearing a black blazer over a
T-shirt emblazoned with “The Dogefather".
“We do expect over time to achieve the USD 1 trillion.”
Early evidence suggests that the goal will be exceedingly
difficult to reach.
By relying chiefly on information technology experts, Musk ended
up stumbling through Washington and sometimes cutting employees vital to
President Donald Trump's own agenda.
Immigration judges were targeted at the same time the
administration was trying to accelerate deportations of people in the US
illegally.
Likewise, technologists with the Bureau of Land Management were
purged from the Department of Interior, despite their significance to clearing
the way for petroleum exploration, a Trump administration priority.
In many cases, fired employees were rehired, adding administrative
costs to an effort aimed at cutting expenditures.
Had Musk's team been staffed with experts on what positions are
required under federal law to continue efforts such as drilling and immigration
enforcement, it could have avoided similar mistakes across multiple
departments, Nowrasteh said.
“I just think there were a lot of unforced errors that a more
knowledgeable DOGE team would have avoided,” Nowrasteh said.
Grover Norquist, president and founder of the conservative Americans
for Tax Relief, had a more favourable perspective on Musk's work, saying it
should be judged not only by the total dollars saved but his ability to
spotlight the issues.
“When you find the problem, you don't know how far the cancer has
spread. You just found a cancer cell,” Norquist said.
Norquist said it's up to Congress to take the baton and set up a
permanent structure to continue where Musk is leaving off.
“I just think it's going to be seen five to 10 years from now as
something very big and very permanent. And that was done only because of a guy
like Musk, who can come in and shake things up," Norquist said.
Elaine Kamarck, a key figure in Clinton's government efficiency
effort, said its efforts were guided by more modest fiscal targets than DOGE.
The initiative was led by then-vice-president Al Gore, and it was
aimed at making the government more responsive to people who used it, and
focused heavily on updating antiquated hiring and purchasing procedures.
It took years and carried into Clinton's second term.
“We went about it methodically, department by department and, yes,
used some outside analysts, but they were seasoned government civil servants
who knew about government in general,” Kamarck said.
Clinton's effort saved USD 136 billion by the end of his second
term, the equivalent of more than USD 240 billion today, and contributed to
budget surpluses for each of the final four fiscal years he was in office.
Kamarck said she expects what she called Musk's “chaotic” approach
will reveal mistakes or oversights that could create crises down the road, such
as a transportation problem, response to a natural disaster, or delivery of
entitlement benefits.
“These are the things that really hurt presidents, and they are
increasing the probability that something is going to happen,” Kamarck said.
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