01-07-2025
In a recent New York Times article examining the challenges facing President-elect Donald Trump's new Department of Government Efficiency (DOGE), economist and Daniels School Distinguished Fellow Douglas Holtz-Eakin offers a sobering perspective on the initiative's potential impact.
Holtz-Eakin, who served as chief economist in President George W. Bush's Council of Economic Advisers and as director of the Congressional Budget Office, highlights the likely direction of the new department. He points out that despite the high-profile appointments of Elon Musk and Vivek Ramaswamy to lead the effort, their power to effect change will be more like a think tank than a traditional government agency.
His assessment underscores the complex reality of federal budgeting and spending. While the new department aims to cut $2 trillion in federal spending, both DOGE and the White House will need partners in Congress. That’s because Congress holds the power of the purse. Musk and Ramaswamy’s role will be to advise the Trump administration and its allies on points of negotiation when Congress tackles budget-related legislation.
"They have no authorities whatsoever," Holtz-Eakin notes of Musk and Ramaswamy. "They don't control the scope of government. They don't control the size of government."
As debates over government efficiency and fiscal responsibility continue, Holtz-Eakin's insights remind us of the enduring challenges in reforming federal spending. His comments invite further discussion on effective strategies for meaningful budget reform and the role of executive initiatives in shaping fiscal policy.
Read the full article for all of Holtz-Eakin's assessment.
