Bank of America CEO Brian Moynihan knows a thing or two about managing complex historic institutions.
But his advice to start a new one government efficiency division, DOGE, may be reputable in terms of project guidelines: Tesla CEO Elon Musk and Politician Vivek Ramaswamy.
Musk, in particular, is known to promise his companies in a unique way, or not shooting the most of the employees of a company or sleeping in his offices and factories.
While the approach of the richest man on the planet has clearly won in some areas, it has hurt others. Xfor example, the workers suffered disruptions When the platform was broken he left who could fix it.
Moynihan suggests a more lenient approach to cutting federal agency costs, particularly if the agencies are to remain efficient.
“You have to be careful in the broader context because the federal government is another component of the economy, so if you shrink it, the question is the private sector and other places have to make it up,” Moynihan said on PBS News. the conversation on tuesday
“The theory is that other places will make up for it eventually because it’s debt-financed, which eliminates other forms of financing,” he added.
The 65-year-old CEO seemed confident that Musk and Ramaswamy could streamline government agencies; after all, “you can make any place more efficient.”
Moynihan points out that at BofA, costs in 2010 ranged from $60 billion to $70 billion.
Despite inflationary pressures and the better part of two decades since, the bank will face costs of about $60 billion this year.
“It was about digitization, automation, making everything efficient and functional,” Moynihan explained. “So I’m sure they can get there, but you have to do it in a rational way that makes sure it sticks to the ribs. Otherwise, if you cut it, it will come right back.’
Rationality can be demonstrated to be a judgment call. Musk has revealed his position, and it is it already made federal workers nervous.
The SpaceX the creator he posted on his social media platform last month that it has a “mandate to eliminate the mountain of stifling regulations that serve no good”.
Likewise, man It is worth $349 billion there is already Setting the tone for DOGE’s working conditionssaying the team will be made up of “high-coefficient small-government revolutionaries” willing to work more than 80 hours a week while cutting costs.
As Musk searches for revolutionaries, Moynihan suggests charting a path that will last forever: “The challenge for government is: Can you get the cuts stuck to your ribs?” he said
“Ronald Reagan would have done it. Al Gore would. George W. Bush would. Barack Obama would. Everyone would make the government more efficient, and it’s difficult because it has complexities.”
Customer service
Another factor between Musk’s business endeavors and his authority at DOGE is who he ultimately answers to.
At Tesla, it’s its shareholders: a group of people who support the CEO $100 billion pay package.
The story is similar to X, although the Big Tech billionaire has significant skin in the game, having sunk $44 billion into the acquisition.
And Musk clearly doesn’t want the platform to fail, he insists on autonomy publicly called Fortune500 CEOs by name and they are accused of an advertising boycott.
In government the story is different. The House, the Senate, or the American public cannot be told to “screw themselves.”
“At the end of the day, they’re serving the American people. So could it be more efficient? There are no questions. You have to be very careful not to interrupt the service,” Moynihan pointed out.
“I wouldn’t worry about the economic impact, because it goes into making sure that basic services are working, the IRS is working properly, the banking regulatory authorities are working properly, the SEC is working properly, capital formation is involved.
“On the other hand, I guarantee you, with any company, any company – this company – you can always achieve efficiencies if you do it the right way, eliminating the work that needs to be automated. Then you can achieve efficiencies that stick.’
