US President Trump praised the Department of Government Efficiency (DOGE) led by tech giant Elon Musk during a joint session of Congress on Tuesday (March 4), stating that it has saved the federal government a significant amount of expenses. However, the operation of this temporary organization, the authenticity of the saved amount, and Musk's role in it have sparked widespread controversy. This article will delve into the background, operational model, and actual impact of DOGE on American taxpayers.

The Establishment and Mission of DOGE

DOGE was created by Trump on his first day in office through an executive order aimed at modernizing federal technology and software, enhancing government efficiency and productivity. Despite being called a 'department', it was not approved by Congress and is a temporary organization directly responsible to Trump.

The scope of DOGE's authorization far exceeds the initial plan, and its team is seeking opportunities to cut expenses and lay off employees in various government departments, with the goal of saving $1 trillion.

The Operation and Disputes of DOGE

The DOGE team has a size of about 40 people, mainly composed of current or former employees of Musk's companies, mostly young software engineers. They lack government work experience, but have great power.

Musk leads DOGE as a "government special employee" and does not receive government salaries. However, critics point out that DOGE's decisions may potentially conflict with Musk's business interests, raising concerns about the transfer of benefits.

The authenticity of the saved amount

According to the DOGE website, as of March 2nd, it has saved taxpayers $105 billion through measures such as layoffs, asset sales, and contract cancellations. However, these data cannot be independently verified and there are obvious calculation errors.

For example, DOGE claimed to have cancelled a contract worth $8 billion, but the actual value was only $8 million. Musk stated that he will promptly correct any errors found, but this still raises questions about his transparency.

DOGE's actual actions and impact

DOGE carried out large-scale reforms of the federal bureaucracy, firing at least 25000 government employees and offering buyout proposals to 75000 people. These measures have caused panic among 2.3 million government civilian workers.

The DOGE team also visited the computer systems of several government agencies, involving the personal data of millions of Americans, which further raised concerns about privacy and security.

conclusion

Musk's "Government Efficiency Department" has implemented significant reforms to the federal government in a short period of time, claiming to have saved huge amounts of money. However, its transparency in operation, authenticity of cost savings, and potential conflicts of interest have made it highly controversial. Whether DOGE is a money saving tool or a part of power games still requires time and facts to verify. In the future, the effectiveness of its reform and its actual impact on American taxpayers will become the focus of attention for all parties.

DOGE has significantly reduced government spending through measures such as layoffs, contract cancellations, and asset sales. This fiscal tightening policy may reduce the fiscal deficit, thereby enhancing market confidence in the health of the US fiscal system.

In the short term, fiscal tightening and increased market confidence may support the strengthening of the US dollar; However, in the long run, changes in economic expectations and uncertainties in international capital flows may have complex impacts on the US dollar. Investors need to closely monitor the actual effectiveness of DOGE reform and its impact on economic fundamentals in order to better grasp the volatility trend of the US dollar.