Original source: Rhythm
Reprinted: Koala, Mars Finance
SpaceX CEO Elon Musk and entrepreneur Vivek Ramaswamy will jointly lead a new U.S. government initiative aimed at reducing the federal budget deficit.
The plan, called the "Department of Government Efficiency" (D.O.G.E), shares the same acronym as Dogecoin (DOGE), Musk's favorite cryptocurrency. According to President-elect Donald Trump, the plan will "cut unnecessary regulations, reduce wasteful spending, and restructure federal agencies."
However, some details of the project remain unclear. Here is everything we currently know about DOGE.
What is DOGE?
DOGE is a plan that the U.S. government is about to launch, first mentioned by Elon Musk in a tweet last August.
Although the project initially seemed like a joke (created just for fun, and the price of Dogecoin always rises whenever Musk mentions it, which is not surprising), Trump expressed support for the DOGE initiative to cut government spending, suggesting that this once fictional department will actually become an affiliate of the U.S. government in real life.
Trump stated in a statement on Tuesday: "Elon Musk and Vivek Ramaswamy will jointly pave the way for my government to dismantle bureaucratic structures, cut unnecessary regulations, reduce wasteful spending, and restructure federal agencies—this is crucial for the 'Save America' movement."
Trump also pointed out that the project will last until "no later than July 4, 2026," which is the 250th anniversary of the Declaration of Independence.
It is worth noting that according to information from the U.S. Congress website, DOGE is not an official department of the U.S. government in the traditional sense, as only Congress (not the President) can approve the establishment of new federal government departments.
Trump stated that Musk's meme-related ideas will exist "outside" the government system. This means that DOGE may not receive government funding support. It also means that the project's ability to directly control the budgets of U.S. government agencies will be very limited, although DOGE's directives may be implemented through Trump's supporters in Congress.
Who will manage DOGE?
Billionaire Elon Musk and Vivek Ramaswamy will lead the Department of Efficiency. According to a tweet posted by Musk on Thursday, neither of them will receive compensation for this work.
Of course, Musk is the CEO of Tesla and SpaceX and the owner of Twitter (now called X). Ramaswamy is an entrepreneur who was a Republican presidential candidate, who dropped out during the primaries to support Trump.
According to an official post released by the department on Thursday, the plan is tentatively composed of a group of "high-IQ individuals supporting the small government revolution" who are willing to work over 80 hours a week to cut disgraceful costs. Elon Musk tweeted this week that it is still unclear how many employees will be hired to work on the project, but these jobs will be unpaid.
As of now, neither Ramaswamy nor Musk has immediately responded to requests for comments from Decrypt.
What will DOGE actually do?
Trump stated that DOGE's responsibility is to provide recommendations and guidance for cutting government regulations and spending by publishing reports, thereby streamlining the U.S. government.
"Your money is being wasted, the Department of Efficiency will fix this. We will no longer let the government entangle you, nor will we take money from your wallets," Musk said at a Trump rally at Madison Square Garden in New York City in October.
However, the billionaire leaders of the quasi-department have given different answers about how much U.S. federal government spending should be cut.
Musk suggested cutting federal spending by $2 million, which would account for one-third of the total U.S. federal budget. Meanwhile, Ramaswamy indicated that he hopes to cut the number of U.S. federal government employees by 75%, although the budgetary impact of such cuts is still unclear.
Despite these differences, according to recent public comments from Ramaswamy and Musk, DOGE leaders seem to agree on cutting a large number of federal government employees and several U.S. agencies, such as the Department of Education and the FBI, to reduce costs.
Musk stated on Twitter on Thursday: "The extent of government funding waste is beyond the public's imagination." He was referring to the U.S. federal government spending exceeding $6 trillion in 2023.
Musk also stated that DOGE will hold live broadcasts weekly to share its progress.
Why is it called DOGE?
The acronym DOGE for this virtual department appears to be a playful reference to Dogecoin (DOGE), a high-market-cap meme coin favored by Elon Musk. This connection is further reinforced by a T-shirt officially sold by Trump, featuring images of President-elect Trump, Musk, and a Shiba Inu.
This meme, famous for its Shiba Inu mascot, was invented by a pair of software engineers in 2013. Musk has stated that he owns "a bunch" of Dogecoin and has frequently talked about the token on Twitter over the past few years. In 2021, he even referred to himself as the "Dogefather" and mentioned the token while hosting Saturday Night Live.
During the time when Musk supported Trump's campaign, the value of Dogecoin soared, and after Trump's victory and the official announcement of the DOGE leadership, its value skyrocketed even more. Dogecoin reached its highest price in three years last week, which also boosted the value of other well-known meme coins.
