National Review Online
Monday, December 09, 2024
In the frenzy of activity since President-elect Trump won
the election, perhaps no move has created more excitement and derision than the
decision to tap Elon Musk and entrepreneur-turned-politician Vivek Ramaswamy to
head up a newly formed Department of Government Efficiency (DOGE) tasked with
downsizing the federal government. Just a few weeks into existence, the ad hoc
entity has inspired merchandise and even meme coins.
We understand its appeal. Conservatives have long had the
fantasy of a ruthless business leader taking the reins of government, axing
unproductive federal employees, and eliminating wasteful spending. Musk would
seem to be the perfect candidate for such a position. A billionaire many times
over, Musk made his record-shattering fortune by doing things people told him
he couldn’t — launching rockets into space that can land back in the same spot,
building a satellite internet system, and even creating an electric car that
people actually want to buy. When he purchased Twitter and slashed most of its
workforce, the tech press was filled with ominous warnings that it would
imminently cease to function, but more than two years later, X is still a
dominant social media platform.
To the extent that Musk, with the help of Ramaswamy and
the rest of the team, can help identify reams of federal regulations worth
undoing, well-compensated workers twiddling their thumbs, and billions of
dollars squandered by federal agencies — count us in. But at the same time,
it’s important to manage expectations.
DOGE is not an actual federal department with any sort of
authority to enact sweeping changes. It will function as an advisory board that
can make recommendations to Trump and Congress, but it will be up to others to
enact and implement them. This is very different from what Musk is empowered to
do as a private-sector executive.
As always, the power of the purse resides with Congress.
Though Musk and Ramaswamy have argued that the executive has broad
authority to initiate mass layoffs in the federal government and undo spending
they claim was unauthorized by Congress, any such decisions will likely be
subject to litigation.
Musk’s claim that they could find $2 trillion to cut in
the $6.8 trillion annual budget is unrealistic given Trump’s other commitments.
Of the budget,
$2.5 trillion goes to Social Security and Medicare alone — two programs Trump
has vowed not to cut. Add in the other health programs a larger Republican
majority was unwilling to cut in his first term (Medicaid, the State Children’s
Health Insurance Program, and Obamacare), as well as veteran’s benefits, and
that takes about $3.5 trillion, or more than half the federal budget, off the
table. Add in interest on the debt (about $900 billion), defense spending ($950
billion), and other spending that is in the mandatory category, and nearly 90
percent of the budget would be accounted for.
Boosters of DOGE would argue that Musk and team can find
ways to make programs, and the Department of Defense, run more efficiently.
While this is true, the reality is that reforms to mandatory programs would
require going through the razor-thin Republican majority in the House and
overcoming the filibuster in the Senate. Given Trump’s “peace through strength”
rhetoric, his pledges to counter China, and his vows to create new weapons
systems (such as an Iron Dome-style anti-missile shield for the entire United
States), it’s unlikely he would want to preside over dramatic cuts to the
defense budget rather than reallocating money saved on eliminating Pentagon
waste to other more useful military purposes. Again, Trump has already vowed
not to touch the two largest entitlements, and any real savings on the nation’s
health care programs would not only involve Congress but would entail reforming
the largest sector in the economy, a hornets’ nest of hospitals, doctors,
insurers, drugmakers, and other intermediaries with competing interests.
Obviously, there is plenty of waste, fraud, and abuse in
the federal government, but that is not the primary reason why it is too big.
It is too big because for decades Congress has gone well beyond its enumerated
powers, taking on too many responsibilities that should have been left to
states or individuals, and the courts have let them get away with it. Social
Security, Medicare, and Medicaid cost over $3 trillion a year not primarily
because of fraud, but because the programs each offer generous benefits to
around 70 million people.
All of this said, those of us who are clear-eyed about
the hurdles to truly tackling the federal budget shouldn’t succumb to cynicism.
We wish Musk, Ramaswamy, and the rest of the DOGE team well in their crusade
against excess government spending and regulation.
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