Donald Trump has appointed Elon Musk and former Republican presidential rival Vivek Ramaswamy to head up a new “Department of Government Efficiency” (DOGE) aimed at drastically cutting back the size of the U.S. Government.
The department – which won’t be an official government agency – will be shortened to DOGE, a reference to Musk’s favorite cryptocurrency Dogecoin.
In a statement on Tuesday (Nov, 12) President-Elect Trump said the pair “will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies.”
The appointment of the world’s richest man to the advisory role fulfills earlier promises Trump made to Musk. The 53-year-old CEO of Tesla and SpaceX has long been critical of the size of the U.S. Government and called for a streamlining of regulations. Musk also claimed during the election campaign he could cut $2 trillion from the $6.5 trillion government budget.
— Elon Musk (@elonmusk) November 13, 2024
There isn’t a great deal of information currently as to how the department will operate but in October, Musk swore it would be “transparent” and that he would “drain the swamps”. He said:
“We’re going to be very open and transparent and be very clear about this is what we’re doing [with the Department of Government Efficiency], here are the issues, this is the math for what’s being spent.
“We’re going to make the spending lower. And if somebody’s got a better idea for how to make the spending lower, tell us. But if we don’t, we’re going to bankrupt the country. And so, we got to do something. And it’s got to be some pretty big moves.”
Elon Musk on D.O.G.E: We'll drain many swamps and be very transparent about it.
“We're going to be very open and transparent and be very clear about this is what we're doing [with the Department of Government Efficiency], here are the issues, this is the math for what's being… pic.twitter.com/bmqqwrZkZX
— ELON DOCS (@elon_docs) November 13, 2024
What will D.O.G.E mean for Elon Musk’s companies?
Government employees typically must declare their financial interests and connections to prevent potential conflicts of interest, including selling off substantial investments related to their official duties. However, since Musk and Ramaswamy would not be officially employed by the federal government, they would not be subject to these disclosure requirements or ethical constraints.
It raises questions about conflicts of interest around Musk’s involvement in government cuts. A 2024 New York Times article compiled data showing that Musk’s ventures were promised $3 billion through almost 100 different agreements with 17 federal organizations. It remains to be seen if Musk will cut departments that directly or indirectly support his companies.
Trump has already indicated it is unlikely Musk will hold a full-time position given his many business commitments.
The Department Of Government Efficiencies might sit under the Federal Advisory Committee Act, the body which holds external groups advising the sitting government accountable to the public.
Dogecoin price takes off
The news sent the price cryptocurrency Dogecoin surging. In the last seven days, at the time of writing, DOGE is up 92% to $0.377.
The name of Musk’s new advisory department, “DOGE”, making its way into mainstream media and retail trading circles has fuelled speculation around the memecoin. Recent price action has led some crypto traders to see $1 as a major price target for DOGE , one that has been long anticipated among the community since 2021, when the token traded above 70 cents.
