The Elon Musk’s government ministry, or DOGE, said it saved $ 160 billion thanks to its efforts to eliminate waste -fed or fraudulent public spending. But this effort may also cost a cost for taxpayers, with a new analysis of a non-partisan research and plea group believing that Doge actions will cost $ 135 billion this exercise.
The analysis aims to compensate for the costs associated with the implementation of tens of thousands of federal employees on paid leave, the re-evolution of workers wrongly and a loss of productivity, according to the Partnership for the Public Service (PSP), a non-partisan non-profit organization which focuses on federal labor.
The estimate of the PSP is based on the $ 270 billion in annual remuneration costs for the federal workforce, by calculating the impact of DOGE shares, from paid holidays to productivity. The cost of $ 135 billion for taxpayers does not include multiple defense costs legal proceedings Contest the actions of DOGE, nor the impact of the lost tax collections estimated due to the reductions of staff at IRS.
Doge sought to reduce federal spending by urging government workers to accept a Delayed resignation planwhich has enabled many employees to maintain remuneration and benefits and benefits without working. 24,000 other government employees who have been dismissed as part of the reform effort has since been rehthened after a court decision.
Other agencies have also rehired some workers after having drawn them by mistake, as flu experts which were dismissed by the United States Department of Agriculture. Federal workers also had to assume tasks such as the documentation of their weekly achievementsWho lowered productivity, Max Stier, president of the Public Service Partnership, told CBS Moneywatch.
“We have not seen a lot of concentration on waste (DOGE) create,” said Stier to CBS Moneywatch about his group’s decision to analyze the costs of the Doge Cups. “It is an effort that was created to approach waste, but we saw the opposite.”
“In the end, it is the public who will end up paying for this,” he added, noting that he expects the costs of taxpayers to increase after other Doge cuts take effect.
The White House challenged the analysis.
“The attempts continue to sow doubt in the massive achievements of this effort never seen before to make the government more effective speaks more about the illegitimacy of those who pedd these lies than a good Doge job,” said White House spokesman Harrison Fields. “The American public is under the president’s mission and will not be influenced by more lies from the inherited media.”
Why job cuts could increase costs
IRS, which plans to coarsely cut 40% of his workforcecould give up $ 323 billion in tax revenue over the next decade due to the drop in tax compliance and a drop in audits, according to an estimate of the Yale Budget LAB.
Admittedly, the Doge Cutts could be paid over time, with a leaner and more targeted federal workforce. For example, direct savings in these layoffs will amount to $ 38 billion over 10 years, said the Public Service partnership.
But Stier argues that costs for taxpayers could grow as they undulate in the economy, such as reductions in health and science research funding. An analysis by researchers in institutions such as the University of Maryland and the University of Pennsylvania estimates that reductions in health research will lead to an annual economic loss of $ 16 billion, with 68,000 lost jobs.
“We can always imagine a miracle that occurs, but none of this has meaning at so many different levels,” said Stier.
Doge’s “Reception Wall”
DOGE keeps a public count in the process of execution of federal money that the working group says that he has saved, published on his website in what is called a “receipt wall”. But some of these savings have been overestimated, a February survey CBS News find.
At the same time, the $ 160 billion in DOGE savings are much lower than the previously declared Musk objective to reduce the annual public spending by 2 billions of dollars, that is to say nearly a third of the federal budget. Many experts say that a much more ambitious objective is unlikely to be achieved without reducing the main federal programs such as social security and health insurance, which President Trump has promised not to touch.
Musk said on Tuesday that he was going Cross your work at Doge From May. His decision arises while Tesla, the manufacturer of electric vehicles he directs, saw a dive of 71% in the benefit of the first quarter and a 20% drop in vehicle sales while some consumers have snubbed the brand due to objections to Musk government work.
Musk said he was still planning to spend one to two days a week on Doge’s work, focusing on eliminating government waste.
“I will have to continue to continue doing so for the rest of the president’s mandate to make sure that waste and fraud do not come back,” he said when Tesla’s first quarter of the first quarter of Tesla.
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