According to Coinbase CEO Brian Armstrong, the planned Department of Government Efficiency, or DOGE, offers incoming President Donald Trump a once-in-a-lifetime opportunity to reform the country’s bloated bureaucracy.
Armstrong shared his views via a post on Twitter/X, saying reducing the size of government could promote economic freedom.
Enhancing government efficiency Cutting “bureaucratic fat” was part of the Trump campaign’s battle cry. During the sorties, the then-Republican candidate claimed that X and Tesla’s Elon Musk would head the new division.
Will DOGE improve government efficiency?
In a Twitter post shared on November 17, the Coinbase CEO joined the growing chorus supporting the creation of DOGE. The new office will give Trump a rare opportunity to address a bloated bureaucracy, which he could strengthen Economic freedom.
Armstrong also explored some suggestions the new agency might consider. For example, he proposed an amendment calling for capping government spending at 10% of GDP. He said America’s founding fathers were geniuses, but admitted that governments grow over time and end up making too many promises to their people.
. @DOGE It is a once-in-a-lifetime opportunity to increase economic freedom in the United States and reduce the size of government once again.
The Founding Fathers were geniuses, but (with modesty) they may have missed the negative incentives that increase the size of democratic government over…
– Brian Armstrong (@brian_armstrong) November 17, 2024
To address this problem, Armstrong suggests maximizing incentives, such as punishing representatives for budget deficits by preventing them from running in elections. The government could also create a sovereign wealth fund in which every American citizen would get a share and provide dividends in the event of a budget surplus.
Elon Musk and Vivek Ramaswamy lead Doge
the Create DOGE This has received a lot of hype even before the US elections on November 5th. Then candidate Donald Trump publicly criticized the federal government for its bloated bureaucracy and reckless spending. He also raised the possibility of appointing Elon Musk to lead the new agency.
As of today, the market cap of cryptocurrencies stood at $3.03 trillion. Chart: TradingView
Immediately a week after his election, the incoming president officially announced the creation of DOGE and appointed Elon Musk and Vivek Ramaswamy to head the agency. Trump has already outlined potential roles for the new agency, including cutting redundant regulations, restructuring agencies, and cutting expenses.
The DOGE announcement gives mixed results
Although the DOGE announcement was widely anticipated, its creation received mixed results and opinions. To begin with, DOGE is not a formal department, which raises the question of what kind of authority and roles Musk and Ramaswamy have. Under federal laws, Congress controls spending.
There are also winners in Trump’s recent announcement of this agency. In addition to Musk taking a more active role under Trump, the cryptocurrency market, especially the meme Doge, is receiving full benefits.
The value of the popular meme currency skyrocketed days after Trump’s election. With DOGE and Musk getting a lot of media coverage, many analysts expect Dogecoin to reach $0.50 by January 2025.
Featured image from DALL-E, chart from TradingView