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As Elon Musk is prepared step back From the Government Efficiency Department (DOGE), its objective to eliminate government waste, fraud and abuse may have been reduced. Some experts warn that their efforts can actually cost billions of governments at work and lost income.
DOGE initially promised to identify and eliminate $ 2 trillion in the first months of President Donald Trump’s second term, although Musk dramatically cut off up to $ 150 million– Only 7.5% of their original estimated savings. These expenses have affected 260,000 federal workers, who have been fired, purchased or retired from Trump’s return to White House, Atmosphere calculate. Between layoffs and resignations, the internal income service may lose up to a third of its workforce of 100,000 forts, about 22,000 of which can adopt the most recent resignation offer of Trump, The New York Times informed Earlier this month.
The mass exodus of federal workers may mean that the Government has less salaries to pay, but it could also critically reduce the amount of work it can do, including the revenue collection of tax audits.
“Our Government needs to work better, but the approaches that have been adopted so far bring us in the wrong exact direction,” said Max Stier, CEO of Efficiency of the Government and the non -profit work force for public service, Fortune.
“The end result will be that the North -American audience will keep their bag when Elon Musk will return to their private companies.”
The collaboration of DOGE Dear of Public Services could cost taxpayers about $ 135 billion. With 2.3 million people from the federal labor force receiving a total of $ 270 million on annual payroll, Stier believes that the cost of shooting, re -hiring and putting workers on paid leave, as well as losses in productivity as a result of staff changes, has cost the government about half of the entire total.
A Yale University of Budget Laboratory Report From March, additional tests were found that DOGE’s planned savings can cost the government. Although it is unclear how much the IRS work force will be reduced, the budget laboratory estimated that 22,000 employees leave the agency, it would lose $ 8.5 billion in net income by 2026, largely as a result of less available staff for audits. For 10 years, this loss would have a revenue of about $ 198 million, according to the report.
These calculations, above all, do not participate or take into account the savings of $ 150 million from DOGE. Some of the Savings Claimed by DOGE found to be wrongIncluding the calculation of savings of the contracts that had expired for years. Harry Kraemer, executive partner of Madison Dearborn Partners and Clinical Leadership Professor at the Kellogg School of Management at Northwestern University, I talked to Fortune Last month Up to 80%could be exceeded the DOGE -related savings.
The White House and Doo did not respond to Fortune’s Requests, but the spokesman for the White House Harrisons Fields said the New York Times“It is important to realize that it has nothing, and these so-called experts and groups are conveniently absent when you look at the costs of doing nothing.”
What DOGE lost in his savings calculations is the value of labor that the federal labor was hired to complete, according to experts.
“Saving in a $ 1 salary decreases the impact of this salary,” said Richard Prisinzano, director of policy analysis of the budget laboratory. Fortune.
The IRS efficiency depends on having staff able to complete audits, argued Prisinzano. Although contrary, to increase the efficiency of the agency, registered by the amount of income it can bring through audits, it would be better to hire more staff. It Wall Street Journal Tens of billions of dollars calculated in Non -collected tax income As a result of recent labor cuts.
“For every dollar spent, there is a bit of income,” said Prisinzano.
But with less hands to complete its work, the federal government may also lose money in the form of lost productivity, the result of the “chaos” created by the presence of DOGE in the agencies, as well as Fires and rehorresStier posited. Fortune Calculated that Musk weekly emails ask workers to list five weekly accomplishments 165,000 hours of their working day to complete.
So, DOGE would be wasting dollars as a result of a labor force that could no longer be done efficiently, which Stier argued that the Trump administration was actively facilitated. Last year, Russell Vought, director of Trump of the Management and Budget Office, said in private speeches“We want to put them in trauma”, referring to the bureaucrats.
“What we are seeing is a labor force that is traumatizing, as the administration has stated as its goal,” said Stier. “And when you traumatize the template, there is nothing produced.”
This story originally presented to Fortune.com