Can DOGE Work?
“Nobody’s ever lost an election for spending too much money up here.” That’s a quote from Rep. Massie, R-KY.
The problem with the quote is that it sure appears to be true – and that’s where we the people need to step in.
The electorate started to express its frustration by voting for a president and a majority of Congress in hopes of stemming the irresponsible flow of money being spent by our federal government.
The U.S. now carries over $36T in debt. The Census Bureau estimates 128.45M households in the country. That translates $280,264 of national/government debt/household.
The Federal Reserve Bank tells us in the 4th quarter of 2024 the average household debt was $128,824 – with 70% of that debt in mortgages.
So, every US household owes over twice the amount of its own debt via the federal government. Of the current $36T in national debt, over $31T has been added in just the last 14 years. FY 2024 alone added another $20,000 to each household’s share of the national debt.
But here’s the kicker. When a family takes out a mortgage to buy a home, it’s required to not only pay the interest costs, but also pay some the principal owed.
The federal government is not required, and hasn’t, paid off any of the principal owed. Instead, it just keeps borrowing money and paying interest only – which now totals over a trillion dollars/year.
Since the presidency of Woodrow Wilson, when the national government devised the income tax, the federal government has seized the wealth of this country and placed it in a single treasury, which with FDR’s expansion of the Administrative State, and LBJ’s Great Society legislation, business as usual has become to be a redistributing dispensary.
Can the Department of Government Efficiency (DOGE) stem the tsunami of spending? While not an official government department, it’s headed by Tesla and Space X CEO Elon Musk and tech entrepreneur Vivek Ramaswamy. They have suggested that $2 trillion in government waste can be cut from the federal budget through the reduction of spending, eliminating government programs and trimming the federal workforce.
Certainly we all understand that on its own, DOGE has no authority to cut spending. We also know that what DOGE can do is bring to light waste and inefficiency, and recommendations on what to do with the oversupply and well-paid army of bureaucrats employed by our seemingly gluttonous government.
We need to start looking for ways to dig ourselves out of the financial catastrophe we’re in and DOGE can be that start. And none too soon.
However, let’s be honest and serious.
Congress needs to consider repealing actions that include chunks of spending for things not in the purview, or required, of the federal government. The more recent bills that spend trillions for solar and wind research, development and construction need to be reviewed in light of cost/benefit.
Further, Congress needs to consider and debate the cost of any new spending and if and what it will add to the debt.
DOGE recommendations to slim done the bureaucracy need to be acted on to reduce spending. We don’t need 3 million people working for the federal government. In fact, that number is not only a waste, but also an abomination.
Whether DOGE considers it or not, and I hope they will, the part of the federal budget that is labeled “mandatory” is no longer acceptable.
We all know the ‘Third Rail of American Politics’ whereby if any politician who touches social security ensures the end of his/her political career.
Mandatory spending is currently not considered when Congress supposedly adopts a budget. It’s just accepted as a given – and it’s been growing. 63% of government spending is now considered mandatory. That expense includes Social Security (21%), Medicare and the federal share of Medicaid represents another 25%. Other mandatory spending funds various income-support programs, including Supplemental Security Income (SSI), unemployment insurance, and the Supplemental Nutrition Assistance Program (SNAP; formerly Food Stamps), as well as federal employee and military retirement and some veterans’ benefits.
The directors of the Social Security and Medicare/Medicaid Trust Funds have been warning they are running out of money. Life expectancy when social security was signed into law in 1935 was 60 for men, 64 for women. Now it’s 74.8 and 80.2, respectively. The result is much more is going out than what’s coming in. Third Rail or no, Congress must take its head out of the sand and address this critical, financial situation. It also needs to cap Medicare/Medicaid reimbursements, and blind spending for all other items now considered ‘mandatory.’ Nothing’s mandatory when one is out of money.
The whole budget – ‘mandatory, discretionary and debt service” needs to be on the Congressional table.
DOGE has great potential in pointing out and recommending change from the current deficit spending status quo.
But that potential will be wasted if nothing meaningful is done by Congress as a result.
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Have a great and prosperous week.
Hug somebody.
References:
https://www.bing.com/search?q=us+national+debt+per+household&FORM=AWRE
https://www.americanthinker.com/articles/2024/12/the_doge_brothers_meet_the_swamp.html
https://www.cdc.gov/nchs/fastats/life-expectancy.htm
https://crsreports.congress.gov/product/pdf/r/r44641
SPIDER Bytes
This week’s trivia question is: What is the title of the classic Greek epic attributed to Homer, telling the story of the Trojan War? The answer to last week’s question re: the human body’s largest organ: Skin. It acts as a protective barrier between the external environment and the inside of the body, shielding the internal organs against heat, light, injury and infection. In addition, skin plays an important role in regulating body temperature, preventing water loss, producing vitamin D and detecting sensations. Adults carry some 8 pounds and 22 square feet of it.
It’s Martin Luther King Day tomorrow. His 2010 “I Have a Dream” speech should be part of every school’s curriculum.
Well, “All hell will not break loose” – at least for 6 weeks. Israel and Hamas reached a ceasefire and some hostages release agreement last week. American citizens remain kidnapped by Hamas.
Apple’s annual meeting of the shareholders is February 25. The meeting will be held virtually, as no location is announced. Apple’s Board and management is pushing back on a shareholder proposal aiming to abolish the company’s DEI program, calling it an inappropriate attempt “to micromanage the company’s programs and policies.” That moniker – micromanage – could be used for any shareholder proposition for any publicly held company. Since Apple is so huge, it can spend millions of dollars on DEI without much impact on the company’s immediate profitability. But ‘good luck’ staying there for Apple. Like any business, they need to listen to their customers, and in this case, also their shareholders – rather than just brushing them off. Apple didn’t get where it is by doing what it’s doing. Steve Jobs did not hire talented people for their cosmetic appeal.
The media made a big deal out of resigned DOJ special prosecutor Jack Smith’s release of his report on Trump’s election interference in 2020. Smith obviously did not review the Georgia case for election interference there, and his indication that he would have won his case is moot – and worth nothing useful.
7 of Trump’s cabinet nominees faced Senate committee confirmation hearings last week. Apparently, all the nominees held their own amidst, in some cases, anonymous charges and unverified rumors of serious past misconduct.
On rising food and energy costs, the December inflation rate was reported at 2.9% last week – up from 2.7% in November. As long as the federal government keeps spending trillions at the current rate, there’s little chance the Federal Reserve’s target of 2% will be met anytime soon. And don’t expect any additional near-term relief on interest rates.
As President Biden concludes his tenure in the Oval Office today, his approval rating hit a record low of 35.6%. At the same time, he’s almost alone in touting his self-described, superlative legacy.
Trump’s inauguration is tomorrow – indoors.
For the 7th time Space X test-launched its mega rocket from its south Texas Starbase site last week. It’s the largest rocket ever built. The Starship sits above the rocket and stands 400 ft tall. The rocket was recovered and will be used again and again. Unfortunately this time Starship disintegrated before its planned splash down in the Indian Ocean about an hour after liftoff. For the 2nd time, the first stage known as Super Heavy, was recovered at the launch site by the newly developed ‘chopstick’ arms of the launch tower after about 7 minutes, and after the spent rocket came back and hovered. The incredible, successful technological engineering involved is fascinating – no, mind-blowing. Little wonder Elon Musk is worth so much. Perhaps priceless is the word.
