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According to a leading crypto expert, Arthur Hayes, Elon Musk won’t achieve much in his new role at the Department of Government Efficiency (DOGE). The BitMEX founder suggested in an X post that Musk will fail to cut the federal government’s expenditures once the agency becomes operational.
Hayes wrote that Musk would struggle to fulfil his mandate without congressional support. He tweeted:
Elon is going to flail at quixotic budget windmills. Perplexity estimates only 2% of discretionary spending can be cut without congressional approval. Good luck getting politicians who need to be re-elected to vote against spending OPM. pic.twitter.com/VZJpASUn3Q
— Arthur Hayes (@CryptoHayes) November 13, 2024
Responding to a cheeky dig from one of the responses, Hayes proclaimed his support for Dogecoin ($DOGE), a meme coin popularized by the World’s richest man. In a quick retort, the renowned entrepreneur said his misgivings about Musk’s ability to cut the US budget significantly wouldn’t make him short his $ DOGE holdings.
Will Musk’s DOGE rein in US spending?
Hayes’ post split his followers’ opinions, with one user, Dan Held, pointing out that Musk isn’t a quitter. Another follower, Tryg, was bullish that the outspoken tech investor would help shed light on government wastage, pressuring politicians to follow suit.
Meanwhile, z-Slickola reminded Hayes that “they had the house and the Senate”, referring to the Republican Party’s (GOP) clean sweep of the polls. The DOGE may require legal backing in the execution of some of its functions, making the GOP’s numbers in both assemblies vital for its operationalization.
Hayes’s thoughts also struck a chord with many other Xers, including Frankie J. He scoffed at the notion of implementing budgetary cuts, wondering where Musk and Co. would find funds to trim. Frankie commented that Tesla’s CEO had backed himself into a corner and would have done better sticking to tech as he isn’t an economist.
The DOGE can save America $2 Trillion
America’s spending was a significant talking point in the recent US elections, with President-Elect Trump leading the chorus of a lean and efficient government. Musk took the cue, claiming the nation could save up to $2 trillion by trimming unnecessary expenses. He claimed that America’s debt was spiralling out of control, portending economic disaster if left unchecked.
Earlier, Vivek Ramaswamy, Trump’s pick to co-head the DOGE with Musk, spoke of the austerity measures that could slash trillions of dollars from the budget. His claims echo Kentucky Senator Rand Paul’s thoughts on Washington’s handling of taxpayers’ funds.
Musk has been a significant beneficiary of the US government, with his firms, particularly SpaceX, scoring lucrative contracts with the federal government. It will be interesting to see how the budgetary cuts he and Vivek have sworn to institute will impact him.