The real impact of DOGE isn't going to be seen in macroeconomic variables because pretending you've made massive savings is not the same thing as actually making massive savings.
— Justin Wolfers (@JustinWolfers) February 25, 2025
But a microeconomic lens yields the more important insight… (1 of 2) pic.twitter.com/Ap7o8Wc92y
Let's use that microeconomic lens and look line-by-line at what DOGE is doing. In each case, the key issue is whether the benefit exceeds the cost. And in dozens of cases Elon is creating huge costs for very little benefit. pic.twitter.com/1MXlBFwibN
— Justin Wolfers (@JustinWolfers) February 25, 2025
I thought that was a nice succinct rundown of the actual economics of Musk’s trainwreck. Unsurprisingly, they will not end up benefiting Americans in either the short or the long term. He didn’t even mention the cutting off of scientific and medical research funds which will actively cause suffering and death. And I won’t be surprised to see them get rid of any kind of credible data collection and analysis by the government, including the economic data the markets rely upon, which means the world will end up flying blind.
They are not doing this to save money or create efficiency. Why would Musk care about that? They are doing it to create openings for people like him (and Trump) to privatize the government and personally profit. They may actually believe that they are better at everything and that it might end up benefiting the peasants in the long run. (It won’t.) But never think that’s their primary motivation. They want to get rid of regulations, cut taxes and take over the necessary functions of the government at a profit.