Source: Fortune
Summary
Elon Musk’s Department of Government Efficiency (DOGE) aimed to cut $2 trillion from the U.S. federal budget, but only saved $200 billion. A recent lawsuit deposition revealed that DOGE’s efforts did little to reduce the deficit. The group eliminated over 300,000 federal employee roles and canceled 13,440 contracts, but economists are skeptical about its ability to slash the federal deficit. Government spending has increased nearly 6% to $7.558 trillion, despite the cuts. Experts argue that most federal spending does not come from salaries, and the government hired contractors to replace employees.
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The numbers tell one story.
DOGE’s cost-cutting efforts fell short of its $2 trillion goal, with only $200 billion in savings. The group’s efforts did little to reduce the deficit, and government spending has increased. Experts argue that the mass layoffs created opportunities for countries like China and Russia to recruit informants. Management experts claim DOGE’s savings were overblown. The libertarian think tank Cato Institute calculated that a 10% cut in the workforce would result in a savings of only about $40 billion.
The real story: Cutting costs doesn’t always cut the deficit.
Author: Evan Null
