DOGE

 Unless you have been living under a rock, you are now familiar with or at least heard of the acronym “DOGE.” The aforesaid acronym stands for Department of Government Efficiency. I would be remiss if I didn’t point out that “Government Efficiency” is as about as glaringly obvious an oxymoron as one will ever stumble across. Wikipedia describes DOGE as an initiative of the second Trump administration tasked with reducing federal spending. Besides carrying out spending cuts, it aims to modernize federal technology and software to maximize governmental efficiency and productivity. DOGE is scheduled to be dissolved on the nation’s 250th birthday - July 4, 2026. Some parties hope it will die a violent death before the United States Semiquincentennial.

Before further opining on the subject matter, I believe it is requisite to issue a couple of disclaimers. First and foremost, I have been a long-term proponent of small and limited government. In that light, I am generally supportive of anything that reduces spending and removes government intrusions from the lives of Americans. The second disclaimer concerns my biases accrued over the past half century when comparing the public sector workforce to the private sector workforce. Opinions tend to be a product of our cumulative experiences. Granted, my public sector employment was extremely limited, while my private sector employment in the world of commerce was both lengthy and extensive. I am thus predisposed to support DOGE and pro-business policies in general. I consider the private sector to be the productive portion of the economy with the public sector for the most part being the unproductive portion.

Supporters of DOGE point out that besides seeking a reduction in spending - fraud, waste, and gross incompetence are all being targeted. With annual government expenditures now over $7 trillion, there is no doubt waste and abuse that can be mitigated to a certain extent. While shocking headlines may be generated by DOGE’s findings, there will not be enough overall savings to move the needle. When the dust eventually settles, there could be $250 - $300 billion in savings in discretionary spending. This represents a measly 3.5% of total spending. I’ve said it before and I’ll say it again: the only way to cure the spending problem is to go after the Big Boys: Defense, Social Security, Medicare, and Medicaid. Another point I would like to make is that government employees are inherently inefficient. Without a bottom line and the necessity to be profitable to retain employment, there is not an incentive for government employees to be efficient.

Practically every president since Teddy Roosevelt has campaigned with the promise of rooting out government waste and keeping a lid on federal expenditures. There is  always a surplus of proclamations and bold talk before the issue quietly slinks away after the election. Even the renowned  conservative, Ronald Reagan, tried and failed miserably in his endeavors to shrink the government. Although I fully expect Trump to similarly fail in his efforts to stop or slow down the expansion of the federal government, I give him credit for at least talking about dramatic changes and at least initially doing something to curtail Big Government. Unfortunately, I feel an economic crisis will derail real fiscal reform and the runaway train will start gathering steam again.

One can make the argument that fiscal motives were not the only reason to unleash DOGE. The ruthlessness and expediency of the job cuts tells me something else is at play. Trump and his policy wonks see government employees, especially those in certain agencies, as being diametrically opposed to his free-market orientation and capitalistic roots. He also thinks, and probably rightfully so, they opposed him during his first term as President. One aspect that MAGA Republicans and traditional conservatives share in common is their disdain for the federal bureaucracy. They mutually view it as a sprawling, unaccountable monolith with multiple tentacles choking out the lifeblood of American businesses and citizens. A heavyweight brawl will soon be front and center. In one corner will be Donald J. Trump representing the Executive Branch of our federal government. The opposite corner will be the  professional managers and their  unions  representing the federal bureaucracy. I anticipate the Supreme Court having an extra-busy  docket over the next few years as they adjudicate various cases coming out of this epic conflict. It was only a matter of time before a chief executive aggressively pushed the boundaries. I look forward to the Court determining the parameters of the extent of power wielded by the Executive Branch.

I’ve made it to the near end of this spiel without even mentioning the country’s $36 trillion debt and annual deficits representing 6% - 7% of our Gross Domestic Product. Anybody with half a brain knows these numbers are unsustainable and a direct threat to the continued prosperity of the United States. Tick, Tick, Tick….the debt bomb is ticking. Americans want this issue addressed, but greatly prefer somebody elses ox be gored. The next blog I churn out will offer some suggestions to avoid a crisis. It will be universally reviled because  everybody’s ox will be gored.