DOGE’s Fuzzy Math

The department’s current efforts—and Musk’s obsession with fraud—are not likely to make a dent in the country’s deficit.

Latest Feb 19, 2025 0 Add to Reading List

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Last week, Representative Marjorie Taylor Greene called the national debt “one of the biggest betrayals against the American people,” suggesting that Americans’ anger about debt “gave birth to the concept of DOGE.” The idea that Elon Musk and his band of government-efficiency crusaders can bring down the debt is a tidy one. But DOGE’s current plans would hardly put a dent in the deficit.

Musk has lamented that America is “drowning” in debt, which has indeed ballooned over the past decade: As of this month, the federal debt is $36 trillion, about $13 trillion higher than it was five years ago. Debt has not been a priority of either major political party for some time, my colleague Annie Lowrey, who covers economics, told me. And despite Taylor Greene’s claims about American anger over the debt, it’s not a top-of-mind issue for people at the polls, either, Annie argued.

If Musk’s team were serious about reducing the deficit, it could explore some unpopular but effective options: reduce spending for the military and the entitlement programs that make up the bulk of the federal budget—Medicare and Social Security—or simply raise taxes, Annie suggested. Instead, what Musk and DOGE have done thus far is ravage government agencies and departments (USAID, for example, which makes up a tiny portion of the budget, and the destruction of which won’t lead to major savings). They’ve also focused on slashing the federal workforce by offering buyouts to 2 million federal workers (and, over the weekend, axing thousands more federal-agency employees); so far, salaries for the workers who have accepted the buyout offer make up a minuscule portion of the national budget in total.

Musk, Trump, and their allies have also turned to a bit of magical thinking, claiming that rooting out fraud in the government is the key to saving money. In a meandering address from the Oval Office last week, Musk claimed without evidence that USAID workers were raking in millions in kickbacks, and that people as old as 150 were claiming Social Security benefits. He wrote on X last week that “at this point, I am 100% certain that the magnitude of the fraud in federal entitlements (Social Security, Medicare, Medicaid, Welfare, Disability, etc) exceeds the combined sum of every private scam you’ve ever heard by FAR.”

Stumbling upon, and reclaiming, trillions of fraudulently spent funds would be rather convenient, and crying “fraud” is a useful way for Musk and his defenders to cast DOGE’s actions as in service of the American people. Trump has touted this same shaky logic, asserting that uncovering a bunch of fraud could mean America has less debt than previously thought. Fraud does exist in parts of the government: Some people intend to defraud government programs; others accidentally sign up for benefits they’re not actually eligible for. And the government does sometimes make payment errors—federal agencies estimated that more than $200 billion was lost in fiscal year 2023 because of such mistakes, and in past years fraud losses accounted for 3 to 7 percent of the budget. But there is no evidence that lowering the deficit is as simple as tamping down on fraud—or that fraud exists to the extent Musk claims.

Plus, by whacking the bureaucracy, Musk and his team are weakening programs that are already working to tamp down fraud. All federal programs have fraud-detection mandates. The Treasury, for example, announced in October that it had recovered or prevented $4 billion in fraud losses in the prior fiscal year, in part from employing AI machine-learning. And as he rails against what he calls fraud, Musk and his associates have effectively shut down the Consumer Financial Protection Bureau, whose mandate is to crack down on fraud in businesses (and which might have regulated Musk’s own companies).

The rhetorical trick of politicians referring to unpopular or disliked government spending as fraud isn’t new. But in an era of rampant scamming, claiming that the American government is swindling its own people hits on a salient national fear. Musk’s first few weeks running DOGE don’t bode well for his ability to solve the debt crisis. He may succeed, however, in further eroding trust in government, which could give him and his team even more leeway in their attempts to dismantle it.

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Today’s News

Top representatives from Russia and the U.S. met in Saudi Arabia to discuss strengthening economic and diplomatic relations between the two countries and assembling a team to start peace negotiations in the Ukraine war.
The Trump administration fired thousands of probationary federal workers over the weekend in departments including the FAA, Health and Human Services, and Energy.
The acting head of the Social Security Administration resigned after DOGE requested access to sensitive personal information about millions of Americans.

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Work in Progress: Derek Thompson explains how COVID pushed a generation of young people to the right.

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