The Price of "Efficiency": Elon Musk's DOGE "Saved" $160 Billion, but Lost $135 Billion
Kyiv • UNN
The DOGE Department claimed savings of $160 billion for the U.S. government. Analysis showed the department's actions cost taxpayers $135 billion through staff reductions and more.
Elon Musk's DOGE Efficiency Department stated that it saved the US government $160 billion. However, according to one analysis, these savings cost taxpayers $135 billion. This is reported by UNN with reference to CBS.
Details
The publication notes that according to DOGE, the department saved $160 billion by trying to eradicate waste or fraud in government spending. However, these efforts may have been costly to taxpayers. A new analysis by a non-partisan research and advocacy group showed that DOGE's actions this fiscal year will cost the country $135 billion.
How the calculations were made
According to the Partnership for Public Service (PSP), which focuses on the federal workforce, the analysis aimed to calculate the costs associated with sending tens of thousands of federal employees on paid leave, rehiring wrongfully dismissed employees, and reducing productivity.
Counting the impact of DOGE's actions from paid leave to reduced productivity, taxpayers spent $135 billion, the publication said.
In addition, this amount does not include the cost of defending several lawsuits challenging DOGE's actions, as well as the consequences of lost tax revenue due to staff reductions at the IRS.
How DOGE tried to cut costs
The department tried to cut federal spending by urging civil servants to accept a deferred retirement plan that allowed many employees to retain full pay and benefits until September without working. Some employees were laid off as part of the reforms.
What really happened
24,000 dismissed civil servants were reinstated by court order.
Federal employees also had to perform tasks such as documenting their weekly achievements, which reduced productivity, Max Stier, president of the Partnership for Public Service, told CBS MoneyWatch.
"We haven't seen DOGE pay particular attention to wastefulness," Stier told CBS MoneyWatch about his group's decision to analyze the costs of DOGE's efforts to save money.
"In the end, the public will pay for it," he added, noting that he expects taxpayer costs to rise after other department cuts take effect.
The White House disagreed with the analysis.
Constant attempts to cast doubt on the massive achievements of this unprecedented attempt to make government more efficient speak more to the illegitimacy of those who spread this falsehood than to the good work of DOGE
"The American public supports the President's mission and will not be swayed by new lies coming from outdated media," he added.
Why cutting jobs can increase costs
According to estimates from the Yale Budget Lab, the IRS, which plans to cut approximately 40% of its workforce, could lose $323 billion in tax revenue over the next decade due to less stringent tax law enforcement and fewer audits.
The publication notes that DOGE cuts may pay off over time. For example, the Partnership for Public Service estimates that direct savings from these layoffs will be $38 billion over 10 years.
But at the same time, taxpayer costs will also increase due to a shortage of specialists in the relevant fields. For example, in the event of cuts in health care and scientific research.
Researchers at the University of Maryland and Pennsylvania estimate that cuts in health care research will result in annual economic losses of $16 billion with the loss of 68,000 jobs.