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Can Musk deliver DOGE? The health of the US economy is in danger

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Can Musk deliver DOGE? The health of the US economy is in danger

The Biden-Harris administration collected much more money from taxpayers last fiscal year but still managed to increase the deficit by another $138 billion. This is unsustainable.

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Progressives suddenly found themselves Lost in the political wilderness, caught in a self-inflicted trap of anger and fear. from your voice their angerthey may be there for a long time. (Thoughts and prayers.)

With Democrats now irrelevant, the second Trump administration has four years to inflict major damage on the Washington establishment, including deep cuts to federal spending and an overhaul of the bloated bureaucracy.

To understand why the wrecking ball is needed, look at the annual budget deficit. $1.8 trillion in fiscal year 2024. In a time of relative peace and prosperity, the budget deficit increased 8% in one year even though federal revenues increased 11%. In other words, the Biden-Harris administration collected significantly more money from taxpayers last fiscal year but still managed to increase the deficit by another $138 billion. This is simply unsustainable.

Enter the new Department of Government Efficiency (DOGE) led by President-elect Donald Trump. Elon Musk and Vivek Ramaswamy.

Musk operates on another level most valuable automobile manufacturer Most important asset in the world (public or private) in Tesla space travel and satellite communications With SpaceX.

Can Musk succeed where Obama’s Simpson-Bowles failed?

If Musk and Ramaswamy can achieve even a fraction of what they dream of – $2 trillion cut in government spending – It could provide a significant boost to our economy.

“They will need budget experts from within Washington, such as former Capitol Hill staffers and the like.” Chris EdwardsA Cato Institute economist who specializes in public spending told me. “(Who are) the people who sit on budget committees on Capitol Hill and work for (the Office of Management and Budget). They’re going to need people like that to tell them exactly how and what they can cut.”

This isn’t the first attempt to cut government spending. In 2010, President Barack Obama Simpson-Bowles commission Propose budget cuts that will close the budget deficit over a 10-year period.

The commission’s recommendations did not gain traction in Congress. In fact, the federal government Nearly $16 trillion added to national debt Since Simpson-Bowles was created. So there’s a reason for the skepticism. Trump and Congress will need to actually cut the programs Musk and Ramaswamy are proposing, even if the president has to use his veto power to do so.

Idea: Trump can fix what Biden broke. But he must seize the moment and continue his mission.

Edwards said Republicans need to get serious about reducing the budget deficit starting next year.

“(Republicans) need to at least show that deficits are on a downward path,” the Cato economist told me. “They don’t have to make a big spending cut next year, but they do need to show financial markets and the Federal Reserve that deficits are on a downward path.”

It is a misconception that the executive branch does not play a significant role in the functioning of the economy. The large federal budget deficit is helping to increase inflation. And as Edwards noted, “The deficits and debts are so large that we are now in uncharted fiscal territory of this country.”

DOGE should cut this department first

The Cato economist said DOGE could start to drive better efficiency by initially focusing on a popular but underperforming part of the budget. The proposal to target federal spending on K-12 education may seem radical, but it would also signal that Musk and Ramaswamy are serious.

“K-12 schools are absolutely the biggest and most attractive opportunity for Trump and his team,” Edwards said. “George W. Bush made a big show of signing the treaty No Child Left Behind legislation … and greatly increased federal subsidies and federal intervention in schools. This clearly failed. Test scores dropped. I think today’s Republican Party has completely changed when it comes to education. … There has been great success in school selection.”

Idea: By electing Trump, voters are harshly rebuking Democrats. So will progressives listen?

I agree with Edwards’ suggestion.

Public schools are necessary but increasingly expensive did not lead to better results.

Ministry of National Education budget almost $80 billion this fiscal year, nearly $10 billion more than the budget enacted just five years ago.

On Tuesday, Edwards and co-author Adam N. Michel published a paper recommending: $4.8 trillion in specific cuts That includes selling Fannie Mae and Freddie Mac over the next 10 years and transforming Medicaid financing by sending block grants to states.

Democrats are sure to whine about these ideas and others. Republicans should ignore them and instead focus on saving taxpayer money, getting the budget deficit under control, and saving America from the economic disaster that will follow if it continues on its current course.

Nicole Russell is a columnist for USA TODAY. He lives in Texas with his four children. Sign up for The Right Track newsletterand get it delivered to your inbox.

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