Optimize 70% of government employees, cut $2 trillion in spending? Musk must first overcome these three major challenges.
Will Musk's 'Department of Government Efficiency' generate love or gain real power? Key points: 1. After being elected president, Trump appointed Musk and Ramaswamy to lead the upcoming 'Department of Government Efficiency' (DOGE) as promised, claiming that this department would help him achieve his campaign promise of significantly cutting government spending and eliminating the 'deep state.' In reality, this department is merely an advisory committee providing recommendations and planning to the president and the White House regarding the reduction of government size and expenditures. How this committee will operate under the new government leadership, and the actual role and influence of the proposed plans and suggestions, remains to be seen. 2. The 'Department of Government Efficiency' first faces three major challenges: the reforms it wishes to promote still require approval from the U.S. Congress; otherwise, Trump and Musk will need to find alternative routes and face the risk of legal litigation; Musk's unique position with his companies may bring legal issues to the 'Department of Government Efficiency'; and there are currently no conclusions regarding the department's budget, personnel, and work arrangements. 3. The proposal to 'cut $2 trillion in government spending' put forth by the 'Department of Government Efficiency' is likely difficult to achieve, as the Democratic Party and the Department of Justice will become obstacles in the decision-making process. Trump and Musk cannot overly interfere in Congress's financial decision-making process. They also face three tough nuts to crack in the American political minefield: elderly healthcare, Medicaid, and Social Security. If Trump cannot truly shake up the federal government's expenditure system, the national fiscal deficit issue may become more prominent. Author: Wang Haolan, an observer in the U.S. Editor: Song Dongze, Zhuang Wenwei. On November 12, U.S. time, just elected as President of the United States and organizing his cabinet, Trump confirmed through social media that he had promised a 'Department of Government Efficiency' led by the world's richest man, Musk, which would officially be 'established.' This new 'department' aims to comprehensively reform American government spending and the civil service system, jointly led by Musk and another wealthy supporter of Trump, Ramaswamy, who participated in the 2024 Republican presidential primary. The idea of Trump's team establishing a dedicated 'Department of Government Efficiency' to clean up the bureaucratic system and optimize the structure of the U.S. government was inspired by Argentine President Milei, who established a government reform department after taking office last year and significantly reduced the number of government departments and employees. Musk publicly called on the U.S. to pursue similar reforms to eliminate the 'deep state' that hinders progress and control federal government spending levels. Meanwhile, Musk, who invented the concept of the 'Department of Government Efficiency' (DOGE), is likely also promoting this government concept department so vigorously due to his unwavering support for the cryptocurrency 'Dogecoin' of the same name.