No Result
View All Result
  • Login
Thursday, July 10, 2025
FeeOnlyNews.com
  • Home
  • Business
  • Financial Planning
  • Personal Finance
  • Investing
  • Money
  • Economy
  • Markets
  • Stocks
  • Trading
  • Home
  • Business
  • Financial Planning
  • Personal Finance
  • Investing
  • Money
  • Economy
  • Markets
  • Stocks
  • Trading
No Result
View All Result
FeeOnlyNews.com
No Result
View All Result
Home Economy

DOGE Was Always Doomed – Econlib

by FeeOnlyNews.com
5 days ago
in Economy
Reading Time: 3 mins read
A A
0
DOGE Was Always Doomed – Econlib
Share on FacebookShare on TwitterShare on LInkedIn


I’m sure DOGE will have a long history as the textbook definition of overpromising and underdelivering. There were a lot of reasons to be skeptical of their chances to meet their goals. But I just want to focus on simple realities DOGE didn’t – and couldn’t – alter.

In 2024, federal spending was $6.8 trillion. Of that $6.8 trillion, $4.1 trillion was so-called mandatory spending – spending on programs that is baked into existing law. Over $3 trillion of that $4.1 trillion went to Social Security, Medicare, and Medicaid. Now, there is no doubt fraud and abuse in each of these programs. But even if DOGE could have perfectly cut out 100% of that fraud, it wouldn’t have added up to much in the face of that $3 trillion. And the people of DOGE simply lacked the institutional knowledge needed to accurately identify a lot of what was or wasn’t fraud or waste. In any system, there will always be things that to an outsider look as though they are striking and dramatic anomalies, but actually have a perfectly mundane explanation. Much of Elon Musk’s early, dramatic statements like making claims about there being more active Social Security accounts than the total American population were just examples of him confusing himself by not understanding the basics. So their flurry of activity into mandatory spending was never a promising avenue.

Interest on the debt, while not technically mandatory in the sense defined above, isn’t exactly optional either, unless policymakers are thinking the United States needs another reduction in its credit rating. That interest accounted for another $900 billion in the 2024 budget.

That leaves a total of $1.8 trillion in so-called discretionary spending. The full military budget for operations, maintenance, servicemember pay, and all the rest, accounts for a little less than half of the discretionary budget. As for the remaining half of discretionary spending – you can just look at the infographic linked above and see how that half is divvied up. While discretionary spending might seem like the easiest to go after, the simple fact is that even huge cuts to this area aren’t going to do much to dent the deficit. For example, every now and then you see a news story about how millions dollars of taxpayer money was used on some comically absurd sounding study, like whether or not the mating behavior of clownfish is altered if they are shown video footage of circus clowns or whatever. (To be clear, that is an entirely imaginary study I invented for comic effect, and not something that was ever done, let alone funded with taxpayer money. (I hope.)) And this news story will become everyone’s favorite example about wasteful government spending for a while. But science, space, and technology as a combined category makes up only $41 billion in total – only about 2% of discretionary spending, and about 0.6% of the federal budget. Get rid of the funding for that clownfish study and a thousand more like it, and you still haven’t made a dent in the deficit. It’s a good move if you want to create flashy headlines and maximize your media coverage. But if you’re serious about fixing the deficit, going after the clownfish studies doesn’t even make the top 100 list of priorities.

To make a serious dent in the federal deficit will require serious reductions in mandatory spending, which makes up the bulk of federal spending. Anyone who says they want to reduce federal spending but won’t talk about making serious changes to Social Security, Medicare, Medicaid, and military spending is at a nonstarter from the beginning. These are all very popular programs. Silly studies about clownfish make much easier targets. Any politician who wants to seriously address federal spending should focus on the former. But a politician whose top priority is getting reelected will spend most of their time talking about the latter.



Source link

Tags: DOGEdoomedEconlib
ShareTweetShare
Previous Post

Crypto’s Path To Legitimacy Runs Through The CARF Regulation

Next Post

The Financial Consequences of Delaying Your Will—Even by a Month

Related Posts

Why Is Every Natural Disaster Being Politicized?

Why Is Every Natural Disaster Being Politicized?

by FeeOnlyNews.com
July 10, 2025
0

Even while the search for missing people in flood-ravaged Texas continues, the politicized invective has come from the Left. Perhaps...

Genius Act: This New US Crypto Law Could Pave the Way for the Next Global Financial Crisis

Genius Act: This New US Crypto Law Could Pave the Way for the Next Global Financial Crisis

by FeeOnlyNews.com
July 10, 2025
0

Yves here. I wish I had reposted some of the content from a great 2022 post at Heisenberg Report, Dear...

Bulgaria Adopts The Euro And Abandons Economic Sovereignty

Bulgaria Adopts The Euro And Abandons Economic Sovereignty

by FeeOnlyNews.com
July 10, 2025
0

Bulgaria’s adoption of the euro is a major step toward abandoning its remaining sovereignty. The European Union is akin to...

P. Diddy RICO Prosecution at the Nexus of Trump-Era Politics

P. Diddy RICO Prosecution at the Nexus of Trump-Era Politics

by FeeOnlyNews.com
July 9, 2025
0

Strip away the patina of celebrity gossip and frippery and the Sean Combs trial becomes a lens through which to...

The Texas Floods and Political Opportunism

The Texas Floods and Political Opportunism

by FeeOnlyNews.com
July 9, 2025
0

What is the Mises Institute? The Mises Institute is a non-profit organization that exists to promote teaching and research in...

The 2025 World Economic Conference – Save The Date!

The 2025 World Economic Conference – Save The Date!

by FeeOnlyNews.com
July 9, 2025
0

We’re pleased to announce that the next World Economic Conference will be held in: Orlando, Florida on November 21– 23,...

Next Post
The Financial Consequences of Delaying Your Will—Even by a Month

The Financial Consequences of Delaying Your Will—Even by a Month

7 Online Scams That Now Target Couples Over 50

7 Online Scams That Now Target Couples Over 50

  • Trending
  • Comments
  • Latest
Friday’s jobs report likely will show hiring cooled in May. What to expect

Friday’s jobs report likely will show hiring cooled in May. What to expect

June 5, 2025
Advisors question SEC push to extend alts investing

Advisors question SEC push to extend alts investing

June 11, 2025
Morgan Stanley targets founders with new designation

Morgan Stanley targets founders with new designation

June 23, 2025
How to buy peace of mind with cybersecurity tech: Show Me Your Stack

How to buy peace of mind with cybersecurity tech: Show Me Your Stack

July 2, 2025
This founder has spent a decade building a multi-million-dollar spice company that is almost profitable. She still doesn’t want your venture capital dollars—at least not for now

This founder has spent a decade building a multi-million-dollar spice company that is almost profitable. She still doesn’t want your venture capital dollars—at least not for now

July 3, 2025
Edward Jones gains tax expertise for UMAs with Natixis deal

Edward Jones gains tax expertise for UMAs with Natixis deal

July 1, 2025
Identities and Causation – Econlib

Identities and Causation – Econlib

0
Amsterdam’s fintech Figo Mobility secures backing from ex-Adyen payments head Edgar Verschuur:

Amsterdam’s fintech Figo Mobility secures backing from ex-Adyen payments head Edgar Verschuur:

0
Tesla: Musk’s Political Pivot, Delivery Misses Put Premium Valuation at Risk

Tesla: Musk’s Political Pivot, Delivery Misses Put Premium Valuation at Risk

0
Tech stacks with AI core for growth-minded RIAs

Tech stacks with AI core for growth-minded RIAs

0
Analyst Explains Why Uber Technologies (UBER) Stock Can Grow More Despite 50% Year-to-Date Gains

Analyst Explains Why Uber Technologies (UBER) Stock Can Grow More Despite 50% Year-to-Date Gains

0
ESMA Reviews Malta’s CASP Licensing, Flags Gaps in Crypto Oversight

ESMA Reviews Malta’s CASP Licensing, Flags Gaps in Crypto Oversight

0
Analyst Explains Why Uber Technologies (UBER) Stock Can Grow More Despite 50% Year-to-Date Gains

Analyst Explains Why Uber Technologies (UBER) Stock Can Grow More Despite 50% Year-to-Date Gains

July 10, 2025
Amsterdam’s fintech Figo Mobility secures backing from ex-Adyen payments head Edgar Verschuur:

Amsterdam’s fintech Figo Mobility secures backing from ex-Adyen payments head Edgar Verschuur:

July 10, 2025
Tesla: Musk’s Political Pivot, Delivery Misses Put Premium Valuation at Risk

Tesla: Musk’s Political Pivot, Delivery Misses Put Premium Valuation at Risk

July 10, 2025
Tech stacks with AI core for growth-minded RIAs

Tech stacks with AI core for growth-minded RIAs

July 10, 2025
Salesforce surpasses 1 million AI agent-customer conversations, says finance chief

Salesforce surpasses 1 million AI agent-customer conversations, says finance chief

July 10, 2025
Why Is Every Natural Disaster Being Politicized?

Why Is Every Natural Disaster Being Politicized?

July 10, 2025
FeeOnlyNews.com

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Economy
  • Financial Planning
  • Investing
  • Market Analysis
  • Markets
  • Money
  • Personal Finance
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Analyst Explains Why Uber Technologies (UBER) Stock Can Grow More Despite 50% Year-to-Date Gains
  • Amsterdam’s fintech Figo Mobility secures backing from ex-Adyen payments head Edgar Verschuur:
  • Tesla: Musk’s Political Pivot, Delivery Misses Put Premium Valuation at Risk
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclaimers
  • About Us
  • Contact Us

Copyright © 2022-2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Sign In with Facebook
Sign In with Google
Sign In with Linked In
OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Business
  • Financial Planning
  • Personal Finance
  • Investing
  • Money
  • Economy
  • Markets
  • Stocks
  • Trading

Copyright © 2022-2024 All Rights Reserved
See articles for original source and related links to external sites.