President-elect Donald Trump has appointed billionaire entrepreneur Elon Musk and Republican leader Vivek Ramaswamy to run the Department of Government Efficiency (DOGE). The goal of this new department is to streamline federal operations and cut wasteful government spending. However, the leading investment bank JP Morgan recently released a report on DOGE, raising doubts about the effectiveness of this department.
JP Morgan has assessed the prospects of DOGE, stating that the new department will face challenges in controlling government spending. While DOGE's mission is to advocate for reducing bureaucracy and government intervention, the reality will be different. In theory, this idea sounds great, but in practice, the department will find it difficult to navigate.
JP Morgan: Congress controls government spending, not DOGE
JP Morgan wrote in its report that Congress controls government spending and DOGE is outside of Congress. DOGE can only make proposals, but the authority to control government spending generally lies in the hands of Congress. This department may not be able to carry out the tasks it has been assigned because officially, it has no power.
"We believe that the department led by Elon Musk, with the goal of cutting wasteful government spending, will have difficulties in achieving that," JP Morgan wrote. "Regarding government efficiency, President-elect Trump is expected to pursue an agenda supporting the reduction of bureaucracy. Part of this agenda includes a new Department of Government Efficiency (DOGE)," JPMorgan stated, adding:
"The bottom line is that Congress controls government spending, and DOGE is outside of Congress," JP Morgan wrote. "The department can make any proposals it wants, but ultimately a majority of 60 votes in Congress will make legislative changes."
In summary, the global investment bank JP Morgan doubts that Elon Musk's DOGE will be beneficial. The new department can only make suggestions, but ultimate power lies in the hands of Congress to control spending.
