Give DOGE a Chance, But Be Realistic
Why Elon Musk and Vivek Ramaswamy have a good goal, with unrealistic and conflicted strategies
If you’re not a Trump supporter, your initial reaction to the new Department of Government Efficiency (“DOGE”) is probably negative. After all, what’s the likely effect of two billionaires, Elon Musk and Vivek Ramaswamy, trying to add more “efficiency” to the government?
Self-dealing, conflicted decision-making, and policies favoring the rich.
Elon Musk is a government contractor and the CEO of two heavily regulated businesses, SpaceX and Tesla. How he can be an impartial arbiter of government spending is anyone’s guess, especially as the regulatory heat increases on Tesla for environmental violations.
If you want to see how the markets perceive his role, it’s one of self-interest — Tesla stock has increased nearly 30% since Election Day, adding billions to Musk’s coffers. It’s unlikely he will recommend any “efficiencies” that stop this gravy train.
With that said, I’m still cautiously optimistic. America has an efficiency and spending problem. Its $36 trillion in debt has ballooned in recent decades, with debt servicing costs of nearly $1 trillion annually just to keep up with the interest payments.
