Musk's DOGE Agenda: $2T Cuts, 1.5M Jobs Lost, Is Education Next?

Elon Musk will play a critical role in Trump’s second administration. The billionaire’s proposed Department of Government Efficiency (DOGE) aims to reduce government spending. The initiative has attracted supporters and critics. Robert Hanashiro-USA TODAY NETWORK

Government Tackles $36.17T Debt with Efficiency Overhaul

The Department of Government Efficiency aims to trim the fat and get the government back to a fiscal surplus. The U.S. government has a $36.17 trillion debt and spent $6.8 trillion in fiscal 2024. The government generated $4.90 trillion, falling almost $2 trillion short of expenditures.

Interest expenses reached $949 billion in fiscal 2024. If unattended, the debt will continue to rise, and annual interest payments will eventually exceed the country’s yearly tax revenue. A higher debt guarantees more inflation and can lead to higher taxes. Katie Goodale / USA TODAY NETWORK via Imagn Images

Elon Musk Slashes X Staff by 80%, Operations Unscathed

Elon Musk Slashes X Staff by 80%, Operations UnscathedElon Musk has branded himself as a "free speech absolutist" since acquiring X, appealing to both Trump supporters and the incoming president.

Musk's entrepreneurial track record is impressive, with successful ventures including PayPal, Tesla, SpaceX, and now X. Notably, he boldly decided to reduce X's staff by 80% shortly after taking over, which surprisingly did not significantly disrupt operations or degrade the user experience. Austin American-Statesman -USA TODAY NETWORK

DOGE Cutting 1.5M Jobs, Economic Impact Feared

One unintended consequence of DOGE is that it will reduce the workforce, which may hurt the economy. Cutting the federal budget requires firing public sector employees, and that can make the government a less attractive employer.

Critics argue that federal job cuts may reduce consumer spending. It’s estimated that Musk would have to cut 1.5 million jobs to reach DOGE’s goals. ljubaphoto from Getty Images Signature

$2T Cuts: DOGE Eyes Social Security, Medicare, Medicaid

DOGE aims to cut $2 trillion in annual expenses from the federal budget. The government spent $6.8 trillion in fiscal 2024, and $2.94 trillion went to Social Security benefits, Medicare, and Medicaid. Speculators assume that DOGE will trim the budget in those three key areas to reach its goal.

That only leaves $3.86 trillion for other expenses. Interest made up $949 billion, while the military made up $826 billion. There is a $1.05 billion “Others” category, but Social Security, Medicare, and Medicaid are the three biggest obstacles to DOGE’s goals. Kameleon007 from Getty Images Signature

Education Dept. Targeted On Chopping Block in Efficiency Push

It’s widely agreed upon between critics and supporters that the Department of Government Efficiency will eliminate federal programs. Elon Musk and Vivek Ramaswamy specifically called out the Department of Education as a program that may be eliminated.
Fewer federal programs can offer citizens fewer amenities. On the other hand, supporters believe that fewer federal programs will get rid of the bloat and minimize government oversight. Jack Gruber / USA TODAY NETWORK via Imagn Images