Elon Musk’s D.O.G.E Could Push the U.S. Economy Into a Depression
Elon Musk’s Department of Government Efficiency (D.O.G.E) is making aggressive budget cuts, putting the U.S. economy on a risky path. Within its first two weeks, D.O.G.E announced plans to slash 20% of the $1.8 trillion annual deficit—a move that could have dire economic consequences.
The Hidden Danger: A GDP Collapse
At first glance, reducing the deficit sounds like a positive step. But when you break down the numbers, the reality is alarming. Musk’s proposed spending cuts could shrink U.S. GDP by 9.4%, a sharper decline than the 2008 recession (which saw only a 4% drop). This would trigger a severe downturn, with millions of government and private-sector jobs disappearing.
If cuts reach $2 billion per day, inflation might ease, but GDP would take a historic hit. Slashing $1.8 trillion in federal spending could shrink the economy by $2.8 trillion—pushing the U.S. into a depression worse than anything seen since the 1930s.
Industries reliant on government contracts could collapse, bankruptcies would surge, and financial markets would spiral into chaos.
The U.S. Debt Problem: A No-Win Situation
The federal government is stuck between two devastating options:
Continue spending $2 trillion annually in borrowed money, worsening inflation and national debt.
Slash spending dramatically, triggering a deep economic contraction.
Over the past five years, the U.S. has added $12 trillion to its debt, bringing the total past $35 trillion. To put that into perspective, it took the U.S. 221 years to accumulate its first $12 trillion in debt—yet the same amount has been added in just five years.
With the debt ceiling suspended until 2025, federal spending has continued unchecked. Musk’s D.O.G.E aims to reverse this trend by cutting spending and reducing the federal deficit.
Elon’s $4 Billion Per Day Target
On day eight of D.O.G.E’s operations, Musk posted on X that he had already saved $1 billion per day. His long-term goal? $4 billion in daily cuts by 2026, reducing the projected $1.87 trillion deficit to just $410 billion—a staggering 78% reduction.
Targeting Waste: Unused Office Space & Fraud
D.O.G.E is prioritizing two of the government’s biggest inefficiencies:
🔹 Unused Office Buildings – The government maintains 511 million square feet of office space, yet no major agency utilizes more than 50% of its available real estate. Maintenance costs alone total $76 billion per year, with additional expenses pushing that figure above $100 billion—roughly 6% of the FY2024 deficit.
🔹 Fraudulent Spending – Musk claims wasteful spending is rampant. After reviewing federal spending databases, he found that Treasury officials estimated $50 billion per year ($1 billion per week) is lost to fraud.
However, resistance is mounting. Just three weeks after D.O.G.E launched its spending cuts, Musk’s access to federal financial databases was blocked. He expressed frustration, calling the waste “utterly insane” and demanding urgent reforms.
Conclusion: A High-Stakes Gamble
Elon Musk’s D.O.G.E could dramatically reduce government waste, but the economic risks are immense. While runaway debt threatens long-term stability, slashing spending too quickly could trigger a catastrophic recession or depression. With both inflation and economic collapse on the line, the U.S. faces one of its toughest financial dilemmas yet.
Disclaimer: This article includes third-party opinions and does not provide financial advice. May contain sponsored content.
