Connect with us

Hi, what are you looking for?

Investing

Government Reform: DOGE + E

Chris Edwards

President-elect Trump should add “and Elimination” to his Department of Government Efficiency (DOGE). The federal government has grown far too large to be managed efficiently. Even if federal workers were highly industrious, and even if politicians were laser-focused on the public interest, the government’s vast size would still create failure after failure. To achieve efficiency, we need major program eliminations. We need a DOGEE.

Federal spending in 2024 of $6.75 trillion was almost 100 times larger than spending by the average state government of $68 billion, as shown in the figure. The average state legislature oversees a budget the size of a bungalow, but Congress (is supposed to) oversee a budget the size of the Empire State Building.

Economist Milton Friedman said, “The tragedy is that because government is doing so many things it ought not to be doing, it performs the functions it ought to be performing badly.” We all know that is true, yet Congress keeps adding more agencies, programs, and spending.

There are 441 federal agencies, as Elon Musk noted. Those agencies run more than 2,400 subsidy programs, have imposed 188,000 pages of regulations, and buy more than $750 billion a year of goods and services. The federal government owns 640 million acres of land and owns or leases almost 300,000 buildings. The federal government is massive in size and sprawling in scope.

Members of Congress don’t have time to oversee even a fraction of this empire. They are consumed by fundraising, meeting with lobbyists, and giving speeches. They routinely miss committee hearings. They don’t know the details of the vast majority of programs they’ve enacted, let alone fix the broken ones. Congress seizes vast powers over society but doesn’t bother ensuring that its interventions actually work.

Sadly, we are squandering a built-in advantage of American democracy that would improve governance. I’m talking about federalism, or allowing the states to handle most government activities. Instead, politicians of both parties have acted to crush federalism and centralize power in Washington over the past century.

They have done so for no good policy reason: centralization benefits politicians, not citizens. Congress has created hundreds of federal programs to supposedly help the public in recent decades, yet polls show that Americans have become ever more disgusted by Washington’s dysfunction and corruption.

The House will be creating a DOGE subcommittee to work with Elon Musk and Vivek Ramaswamy. But we really need a DOGEE, with the elimination part coming first.

Data note: I estimated total state spending for 2024 based on data from the National Association of State Budget Officers and divided by 50.

Advertisement

    You May Also Like

    Investing

    RevisingTheBankSecrecyAct_NorbertMichelAndJenniferSchulp_CMFAWP007   The post Revising the Bank Secrecy Act to Protect Privacy and Deter Criminals (CMFA Working Paper No.007) appeared first on Alt-M.

    Investing

    Recently, an investment advisor and Bitcoin proponent tweeted the claim that “[f]or most of human history” the “[s]eparation of money and state was the...

    Business

    Rollee enables worker’s to share their professional data, spread over one or more financial platforms. Ali Hamriti, CEO and Co-Founder of Rollee, is on...

    Stocks

    SPX Monitoring Purposes: Sold long SPX 1/27/23 at 4070.56 = Gain 6.51%; Long on 12/20/22 at 3821.62. The top window is the cumulative GDX...

    Disclaimer: successfuldealnow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 successfuldealnow.com | All Rights Reserved