- Trump plans to establish D.O.G.E. (Department of Government Efficiency) with Elon Musk and Vivek Ramaswamy.
- D.O.G.E. aims to reduce waste, fraud, and excessive expenditures in the government.
- Successful implementation could lead to significant savings and support Trump’s proposed tax cuts.
After winning the Presidential election – Donald Trump announced that he plans to build a new government department alongside one of its most influential campaign supporters, Elon Musk. The new government arm received the humorous name of D.O.G.E. (Department of Government Efficiency) – a clear nod to Musk’s favorite memecoin, Dogecoin.
However, little is known about the role D.O.G.E. will play in the future government. In addition to Elon Musk, Trump also appointed Vivek Ramaswamy to lead the department.
As the name says, the purpose of D.O.G.E. is to boost the efficiency of the government. During the announcement, Trump mentioned that the new branch would look to reduce bureaucracy, lessen regulations, and dismantle excessive expenditures in the White House.
The President-elect also spoke about how Musk and Ramaswamy will look to reduce fraud and lead the government expenses to reach the $6.5 trillion budget. If successful, D.O.G.E. will lead to the better use of taxpayer’s dollars – potentially reflecting on the average American purchasing power.
Aside from the little that was said – the rest is unfortunately left to speculation. Despite being nominated by Trump, it is unlikely that D.O.G.E. will become an official government department as that would mean getting Congress approval.
However, as far as speculation goes, the new government branch could have significance on risky asset markets like cryptocurrencies and stocks. Both Trump and Elon Musk have opposed over-regulation by the Government – while Ramaswamy is one step ahead of them as he already proposed shutting down the Department of Education, the FBI, and the IRS.
Moreover, if D.O.G.E. can cut down costs and reduce fraud and bureaucracy, this could lead to increased efficiency and significant savings for the government. The potential impact on the economy and taxpayer dollars remains to be seen but it could also boost the average American purchasing power.
Adding to that notion – one of Trump’s strongest campaign bids was a hefty tax cut proposal – even heavier than the one the Republican implemented during his first tenure. This means that if Musk and Ramaswamy are successful in cutting useless spending – Donald Trump’s tax cuts could have an easier time passing, and the extra funding would make it easier for the Central Bank under the Federal Reserve to maintain its recent interest rate cuts without overly affecting the U.S. inflation rates.
