The incoming Trump administration’s solution to government spending is a new Department of Government Efficiency headed by the department’s chief: the world’s richest man and a former political opponent of Trump.
But while the plan to cut government spending may seem simple on the surface, the “department” led by billionaire Elon Musk and former Republican presidential candidate Vivek Ramaswamy is quite unorthodox. The The US Constitution The President says: “He may request in writing the Opinion of the Director General of the General Directorate of General Directorates”. That part it brings A first-rate leader and explains why executive cabinet departments including State, Defense and Treasury have a single secretary in the chain of command of the president. However, other agencies, such as the Federal Trade Commission, a committee structure; The president appoints a commissioner to be the president.
what is it
in a statement about Social Truth On Tuesday, President-elect Donald Trump gave the department a broad mandate to “dismantle the Government Bureaucracy, reduce excessive regulation, reduce wasteful spending and restructure Federal Agencies.” Trump emphasized the importance of the department in the 20th century. He compared it to the “Manhattan Project” that created the atomic bomb in the 20th century.
Trump added in the statement that fellow leaders will address waste and fraud in what Trump said is the entire $6.5 trillion annual federal budget. The department will operate through July 4, 2026, ending its operations in time for the 250th anniversary of the Declaration of Independence, Trump said.
Co-leader Elon Musk said in one Wednesday’s message that massive reductions and reforms will “take place much faster”.
Why two department heads?
The department’s two leaders, billionaire Elon Musk and former Republican presidential candidate Vivek Ramaswamy, have been staunch supporters of the president-elect. Musk, CEO Tesla and SpaceX and social media website owner XTrump reportedly contributed about $200 million in funding through his super PAC and often spoke to him at campaign rallies before the election. Musk is the world’s richest man, with a net worth of $319 billion, according to the Bloomberg Billionaires Index.
Although he ran against Trump in the first Republican race, Ramaswamy dropped out Trump endorsed it in January. The entrepreneur who founded the pharmaceutical company Roivant Sciences has also appeared with Trump campaign trail.
Some Democratic leaders have already criticized the department’s co-chairs, including Sen. Elizabeth Warren (D-Mass.).
“The Office of Government Efficiency has gotten off to a great start with split leadership: two people doing one person’s job. Yes, this looks REALLY effective,” Warren wrote on Tuesday publish in X.
The Trump transition team did not immediately respond luckrequest for comment.
Will the Department of Government Efficiency be a new government department?
Contrary to its name, the new “department” will not be part of the federal government, but more like an advisory body that will “provide advice and guidance outside of government,” according to the statement. Musk noted that the new department is out of government as an “important detail.” the message X. Wednesday. Musk, in particular, has his hands full elsewhere with his other companies, Tesla, SpaceX and social networking site, X.
Despite being separated from the administration, department leaders have Trump’s support and have promised a number of internal changes to try to reduce federal spending.
What do members of the government say about government spending?
During his campaign with Trump, Musk said he wanted to cut the federal budget by $2 trillion, adding that “some big moves” were needed at the October rally.
“Our defense budget is quite huge. It’s a trillion dollars,” Musk he said in a rally “The interest we owe on the debt is currently higher than the defense budget. This is not sustainable. That’s why we need the Government’s Efficiency Department.”
Ramaswamy has floated the idea of eliminating the Department of Education, the FBI and the IRS through an executive order to cut spending. New York Times notify Ramaswamy said that the federal workforce should be reduced by 75%.
The pair said the cuts would be transparent, and Musk added that the department would create “classification“To show you the dumbest spending of your tax dollars.”
Will it work?
The experts have it doubt Whether Musk and Ramaswamy will be able to find $2 trillion in federal spending cuts without affecting long-untouched programs such as social security and defense spending.
The consequences of major cuts could also include mass layoffs and temporary economic pain for government workers. When a user on Musk’s X social network wrote in October that Musk’s spending cuts could cause a temporary overreaction in the economy, Musk responded. “seems right.”
Former Treasury Secretary Larry Summers said in a speech at the Economic Club of New York on Tuesday that Musk would be lucky to find $200 billion in cuts, much less $2 trillion. CNN notify.
Why the acronym “DOGE”?
The Department of Government Efficiency, or DOGE as Trump abbreviated it in his official announcement, is a call to bring back the Dogecoin meme cryptocurrency that Musk has often promoted over the years.
The cryptocurrency was originally created as a joke, but it has become the sixth largest cryptocurrency with a market capitalization of $56 billion as of Wednesday, larger than that of the largest companies. Volkswagen or Ford
Cryptocurrency It has increased by 20% It rose just over 1% on Wednesday evening after Trump’s announcement on Tuesday.
