Understanding Elon Musk’s Role In The Government — And How It Could Impact Your Wallet
Written by
Nicholas Morine
Edited by
Angela Corry
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
With Tesla CEO Elon Musk, a notable supporter of President Donald Trump, having helmed the Department of Government Efficiency (DOGE) following the president’s inauguration, supporters and critics alike have been inundated with news headlines surrounding the initiative.
Musk is classified as a special government employee, according to NPR, and following his placement at the head of DOGE, he and his team immediately set to work. Musk has since dismantled USAID, terminated several thousand federal employees, per The Guardian, and, most recently, cut 121 contracts worth approximately $350 million, as Newsweek reported.
Those directly affected by job losses or the loss of a government contract will almost certainly feel economic strain on a personal level. Still, most analysts seem to suggest that the average American will see most of the impact of Musk’s DOGE on a macroeconomic level.
Musk’s DOGE Work Could End Up Costing Americans
Critics of Musk’s work with DOGE suggest that the total savings from the department’s cost-cutting measures will save potentially between $1 billion and $2 billion, far behind Musk’s stated intent to save between $1 trillion and $2 trillion.
Pointing to massive amounts of legal fees as a result of DOGE’s actions, damages from illegal firings, and a massive reduction in IRS staffing — “worth their weight in gold because of the taxes they collect,” as The Independent editor Mary Papenfuss wrote — the outlet cited a preliminary IRS survey suggesting that $500 billion in revenue could be lost as a result. That’s before considering the legal damages and lawyers’ fees.
DOGE’s failure was “preordained,” according to The Atlantic’s Jonathan Chait.
“There isn’t anything close to $1 trillion in waste, fraud and abuse in the budget, despite Musk’s repeated statements to the contrary,” Chait claimed.
DOGE Has Saved $140 Billion So Far, According to the Department
On the other hand, DOGE’s official website indicates that it has thus far saved an estimated $140 billion in government waste — an average of around $870 per U.S. taxpayer.
“Everything I do is under extreme scrutiny. So there’s not an action I can take that doesn’t get scrutiny six ways to Sunday. Every action that the DOGE team does is public… It’s the most amount of transparency there’s been about any government thing ever,” Musk said during an interview with FOX News anchor Bret Baier.
The DOGE website reinforces this commitment to produced receipts and transparency.
“We are working to upload all of our receipts in a digestible and transparent manner consistent with applicable rules and regulations. To get started, listed below are a subset of contract, grant, and lease cancellations, representing ~30% of total savings,” DOGE stated.
More From GOBankingRates
