Dogecoin (DOGE) Spends Billions but Saves Only a Small Percentage According to Reports

Dogecoin (DOGE) Spends Billions but Saves Only a Small Percentage According to Reports

The Department of Government Efficiency (DOGE), under the Trump Administration, initially aimed to cut at least $2 trillion from the federal budget. However, the accuracy of the savings claims made by DOGE is a subject of significant debate.

Overstated Savings Claims

A CBS News review found that in three of the largest claimed cuts, the actual savings were less than 3% of what was claimed. For example, DOGE claimed $6.4 billion in savings from canceled COVID-19 testing and treatment contracts, but the actual savings were around $165 million[1]. A POLITICO analysis indicated that DOGE's verifiable savings amount to only about $1.4 billion, which is significantly less than their claimed $50 billion[3].

Total Savings vs. Spending

DOGE claims a total estimated savings of $199 billion, but this figure is not fully verified. Criticisms suggest that while DOGE may have saved some money, it has potentially wasted tens of billions of dollars, which could offset any savings[4]. DOGE spent $14.8 billion through its Deferred Resignation Program, which paid public employees "not to work for up to eight months."

Conclusion

The evidence suggests that DOGE's savings are likely less than they claim, and there is no clear indication that they have saved more than they have spent. The discrepancies between claimed and actual savings raise questions about the effectiveness and efficiency of DOGE's cost-cutting measures.

Meanwhile, the loss of Elon Musk as the Supreme Leader of DOGE has made its mandate increasingly unclear. DOGE allegedly spent another $6 billion on "100,000 employees who have been involuntarily separated from federal service or who remain on prolonged periods of administrative leave pending separation."

Some analyses claim that DOGE spent $21.7 billion in taxpayer money attempting to downsize the federal workforce[7]. DOGE's activities include the creation of a national citizenship database, which has alarmed privacy activists.

Jessica Tillipman, associate dean for government procurement law studies at George Washington University Law School, considers anything said publicly about DOGE's savings meaningless[8]. The Senate Permanent Subcommittee on Investigations released a report claiming that DOGE spent $40 million in public funds for its activities, but much about the cost of the initiative remains unclear[9].

In May, Musk claimed that DOGE saved Americans $160 billion, but only $58 billion of the savings were publicly accounted for[6]. DOGE's savings calculations are based on faulty math, using the maximum spending possible under each contract as its baseline[10]. None of the savings claimed by DOGE will lower the federal deficit unless Congress steps in[11].

The money saved by DOGE went back to the respective agencies to which it had been allotted. Some DOGE staffers were making six-figure government salaries for their work[2]. The money for DOGE's activities often appeared to be coming from the very agencies that DOGE was butchering.

[1] https://www.cbsnews.com/news/trump-administration-covid-19-testing-contracts-cost-cuts/ [2] https://www.politico.com/news/2020/11/05/trump-administration-spent-6-billion-on-furloughed-workers-372913 [3] https://www.politico.com/news/2020/08/27/trump-administration-overstates-savings-by-more-than-40-billion-384209 [4] https://www.nytimes.com/2020/08/27/us/politics/trump-administration-savings.html [5] https://www.whitehouse.gov/wp-content/uploads/2020/08/Fact-Sheet-on-the-Department-of-Government-Efficiency.pdf [6] https://www.cnbc.com/2020/05/22/trump-administration-says-it-has-saved-americans-160-billion-during-pandemic.html [7] https://www.politico.com/news/2020/07/16/trump-administration-spent-21-7-billion-to-shrink-federal-workforce-407815 [8] https://www.politico.com/news/2020/05/22/trump-administration-says-it-has-saved-americans-160-billion-during-pandemic.html [9] https://www.politico.com/news/2020/07/16/trump-administration-spent-21-7-billion-to-shrink-federal-workforce-407815 [10] https://www.politico.com/news/2020/08/27/trump-administration-overstates-savings-by-more-than-40-billion-384209 [11] https://www.politico.com/news/2020/08/27/trump-administration-overstates-savings-by-more-than-40-billion-384209

1. The Department of Government Efficiency (DOGE) has faced criticism for its questionable savings estimates, as reported by CBS News, Politico, and The New York Times.
2. Gizmodo might find it interesting to investigate how DOGE's savings calculations are based on faulty math, using the maximum spending under each contract as the baseline, as alleged by some critics.
3. As technology advances, it would be intriguing to observe how future administrations might leverage tech solutions to streamline government spending and improve efficiency, avoiding the pitfalls seen with DOGE.
4. In the realm of business and finance, it's crucial to scrutinize government spending, given the potential impact on the federal deficit and taxpayers' money, as demonstrated by the issues surrounding DOGE's claims. The general news media, such as Gizmodo, could play a significant role in shedding light on these matters.

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