The newly formed Department of Government Efficiency (DOGE), a brainchild of President-elect Donald Trump, is facing mounting criticism from prominent economists and political figures alike. At the heart of the controversy is the department’s approach to government spending, which has been deemed short-sighted and potentially counterproductive by several experts. The latest clash centers on a seemingly innocuous target: a 2010 Super Bowl advertisement by the U.S. Census Bureau.
The firestorm erupted after DOGE, co-directed by controversial figures Vivek Ramaswamy and Elon Musk, highlighted the Census Bureau’s $2.5 million expenditure on the Super Bowl ad as an example of wasteful government spending. Ramaswamy, echoing the department’s stance, declared that the federal government shouldn’t be advertising during the Super Bowl. This sparked a swift and pointed rebuttal from renowned economist Claudia Sahm, creator of the influential Sahm Rule economic indicator.
Sahm’s response was succinct but powerful: “Rule of thumb: the Census is in the Constitution. Do your legal job well.” She defended the ad’s expense, emphasizing its potential to save taxpayer money by increasing mail-in responses. The Census Bureau itself had previously argued that every 1% increase in mail-in responses saved a substantial $85 million in door-to-door collection costs. This highlights the potential for targeted government spending to actually generate cost savings in the long run.
Sahm’s criticism extends beyond this specific instance. She expressed broader concerns about DOGE’s overall approach, stating, “There is so much good that ‘outside the box thinking’ in the government could do… but it’s being wasted on destructive, simplistic thinking. DOGE is on track to be a wasted opportunity.” She argued that genuine efficiency improvements may often require upfront investment, citing a massive overhaul of government IT systems as one example that would demand considerable resources.
This concern is echoed by former Labor Secretary Robert Reich, who has criticized the department as being “riddled with conflicts of interest.” Reich’s concerns center on Musk’s involvement, given Tesla’s existing federal contracts and ongoing investigations. This raises legitimate questions about potential biases in the department’s decision-making processes. The department’s ambitious goal is to restructure federal agencies and slash the government’s $6.5 trillion annual spending by July 4th, 2026 – coincidentally, America’s 250th independence anniversary.
The irony isn’t lost on observers. The department’s acronym, DOGE, is identical to the cryptocurrency Dogecoin, leading to a 30.79% surge in the coin’s price following the department’s announcement. Market analysts attribute this surge to Musk’s well-known connection to Dogecoin, further highlighting the unusual circumstances surrounding this controversial new government body. The debate over DOGE’s effectiveness and its impact on government efficiency is far from over, and the coming years will be crucial in determining whether it lives up to its ambitious goals or becomes another chapter in the long history of government reform efforts.
