Cathie Wood, CEO of ARK Invest, endorsed the newly created Department of Government Efficiency (DOGE) under Elon Musk‘s leadership while advocating for stricter government spending controls in a series of posts on X on Sunday.
What Happened: “Government spending is taxation,” Wood said, citing her early economics education with Arthur Laffer. She emphasized that government spending either translates to immediate tax increases, future generational burdens, or inflation, which she termed “the most regressive tax of all.”
The discussion gained momentum following Coinbase Global Inc COIN CEO Brian Armstrong‘s proposals for constitutional reforms to limit federal expenditures. Armstrong suggested implementing a constitutional amendment capping government spending at 10% and establishing a U.S. sovereign wealth fund that would distribute shares and dividends from budget surpluses to citizens.
Wood, who recently praised Musk’s appointment to lead DOGE in a CNBC interview, emphasized his technological expertise as crucial for the department’s mission to minimize waste and streamline government operations.
The department, named after the cryptocurrency Dogecoin DOGE/USD, aims to eliminate unnecessary regulations and reorganize federal agencies for improved efficiency.
Dogecoin rallied by 6.52% over the past 24 hours to $0.372. The cryptocurrency surged 26.24% in the past week and an impressive 155.42% over the last month.
Why It Matters: Drawing parallels to historical economic transformations, Wood highlighted the former President Ronald Reagan administration’s impact: “The Reagan revolution extended through President Clinton’s administration, leading to lower taxes, stronger GDP growth, and a bull market rewarding active equity management that lasted nearly 20 years. We believe that this bull market has just begun to broaden out.”
With President-elect Donald Trump‘s upcoming return to the White House, Wood anticipates significant economic growth through deregulation and tax cuts, similar to the Reagan era’s economic policies. She predicts these changes, combined with DOGE’s efficiency initiatives, will “change the mindset profoundly in Washington” and potentially lead to lower individual and corporate tax rates.
The ARK Invest CEO, who maintains a bullish stance on cryptocurrency with Bitcoin BTC/USD price predictions reaching $650,000 to $1.5 million by 2030, believes the current bull market “has just begun to broaden out,” suggesting a positive outlook for both traditional and digital asset markets under the incoming administration.
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Image via Ark Invest
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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