Well, Elon Musk has not only recently assumed the position of Tesla CEO but also became one of the leaders of the Department of Government Efficiency (DOGE). On this front, Musk and former GOP presidential candidate Vivek Ramaswamy have taken on the noble task of rationalizing federal funds. One of their most controversial ideas? Cutting entire federal agencies.
This aggressive strategy, if executed, could influence over two million personnel who are involved in federal service. It’s about time to discuss details of this proposal, how it will impact the federal agencies, where the majority of government employees are employed, and how much they actually make.
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A Radical Proposal for Government Efficiency
The newly-formed Department of Government Efficiency, a commission created by former President Donald Trump, has a simple yet far-reaching goal: reduce government spending. According to Vivek Ramaswamy, speaking recently on Fox News, the commission intends to “delete outright” certain federal agencies. Although no specific departments have been named yet, Ramaswamy did allude to “bloated” sectors of the government as prime targets for downsizing.
While the specifics remain vague, such plans raise concerns about job losses, the shifting of responsibilities to states, and what the broader economic implications might be. Currently, it is Musk and Ramaswamy who have signaled their interest in cutting down the number of employees and general optimization of government agencies.
The Federal Government
The federal government is the largest employer of persons to service in the United States, employing about 2,000,000 civilians. The highest level of federal organizations’ employment is affected by the department of veterans affairs with at least 500000 employees. At the low end, the Department of Education enrolls less than 5000 workers, approximately 4109 to be exact.
Here’s a closer look at government employment numbers for March 2024, according to the US Office of Personnel Management:
- Around 500,000 employees in the Veterans Affairs Department.
- Around 100,000 people, with 94,000 of them working for the Internal Revenue Service in the Treasury Department.
- Over 4,000 workers in the Department of Education.
While the workforce size varies significantly across departments, most cabinet-level agencies offer competitive salaries. For instance:
- Department of Education: Actual wages paid to workers are among the highest average federal government wages due to the demand for specialized skills in the trade.
- Department of Energy: Like Education above, this department also enjoys above-six-figure average salaries.
Musk and Ramaswamy’s Vision for Change
In an October statement, Elon Musk shed light on the guiding principles behind the commission’s goals. He emphasized that the aim isn’t to be “cruel” or leave federal workers struggling financially. Instead, Musk floated the idea of providing long severance packages up to two years of pay for those impacted by layoffs.
“The point is not to have people who cannot afford to pay their mortgage,” A statement made by Musk. “It is about making government leaner and directing these workers to more productive use in other jobs.”
Ramaswamy has echoed similar sentiments, describing their approach as one that prioritizes sustainability in federal operations. However, critics question whether the cuts will actually translate into efficiency or merely shift responsibilities to state governments and private entities without adequate support.
Related Read: Elon Musk’s Wealth Hit $300 Billion After Trump’s Election Win
Potential Targets: Departments in the Spotlight
Although Musk and Ramaswamy have yet to specify which federal agencies are being considered for elimination, Trump’s past rhetoric provides some clues. In 2023, the former president openly advocated for closing the Department of Education and redirecting its functions to state governments.
This proposal aligns with the broader GOP sentiment of decentralizing federal oversight, particularly in areas like education and healthcare. Other potential areas for cuts could include:
- Medicare and Social Security: Both of these programs constitute a large part of total non-interest spending, which is mandatory. However, any change in such options could only be brought through a congressional act, making the processes manyfold.
- IRS Operations: Due to over 94,000 employees working for the IRS in the Treasury Department, the argument on cutting down the enforcement of taxes has always been sparked by the conservatives.
Challenges Ahead for DOGE’s Ambitions
The commission’s recommendations are just that recommendations. While DOGE can advise the president-elect on potential agency cuts, Trump would need congressional approval to implement them. This adds an additional hurdle for Musk, Ramaswamy, and the rest of the commission’s team.
Moreover, federal severance policies, overseen by the Office of Personnel Management, ensure that any involuntarily separated employees are compensated. The OPM has made it clear that its policies remain unchanged and that any new administration would need to work within existing frameworks.
Historically, efforts like this have been attempted before. For example, President Ronald Reagan’s Grace Commission was established to determine areas of waste spending in government during the 1980s. Yet most of them were never fully implemented because of political and other practical constraints.
Implications for Federal Employees and the Economy
As the readers can see, the agency eliminations under discussion can reconfigure the federal workforce and affect the economy. Here’s why:
- Economic Impact: Federal employees spend their wages in their local community, especially if they live in states that are mostly dependent on federal agencies. The current job losses may be impacting these areas most.
- Workforce Transition: As for Musk’s severance packages that he proposed, they may ease the initial shock. However, moving to other industries may not be easy for most federal workers.
- Service Delivery: In their current state, downsizing agencies may greatly hamper the delivery of services by the federal government, which would translate the problem to other states and organizations.
Uncertain Future for DOGE’s Vision
When the United States government is planning to spend $6.75 trillion in Fiscal Year 2024, the idea of cutting a part is virtually impossible. While Musk and Ramaswamy’s push to make federal operations more efficient and parsimonious could entice some voters seeking frugality, it remains to be seen that the duo’s aims will not cause more issues than they solve.
At the heart of the debate is the question of balance: That raises the question of how the government can avoid spending even more and still remain true to its mission of serving the American populace. As we have discussed earlier, whether this vision will come true for DOGE or it will remain as yet another story of unimplemented government efficiency strategies only the future will reveal.
Key Takeaways:
- Over 2 million civilians work for the federal government, with the Veterans Affairs Department employing the largest share.
- DOGE leaders Elon Musk and Vivek Ramaswamy are exploring the elimination of certain agencies to cut spending.
- Significant hurdles, including congressional approval and economic concerns, stand in the way of their vision.
