The Department of Government Efficiency aka DOGE, not Dogecoin DOGE/USD, which is going to be formed with Elon Musk and Vivek Ramaswamy at the helm, could be a “quid-pro-quo riddled with conflicts of interest,” said the Bill Clinton-era secretary of labor, Robert Reich.
What happened: Reich took to his Instagram and X to question the intentions behind forming this task force. “It should be clear that this new Department of Government Efficiency for Musk isn’t actually about efficiency. It’s simply a quid-pro-quo riddled with conflicts of interest,” he opined.
Taking a jibe at the President-elect Donald Trump he further said, “Anything and everything will always be for sale under Trump. Musk is just the latest person to take advantage of this.”
As per the notice shared by Trump, the initiative is expected to focus on dismantling bureaucracy, reducing regulations, and cutting wasteful expenditures. The department is scheduled to complete its work by July 4, 2026, coinciding with America’s 250th independence anniversary.
According to The New York Times, Musk's businesses, including SpaceX and Tesla Inc. TSLA, were scheduled to receive approximately $3 billion in federal contracts from 17 agencies in 2023. Furthermore, his companies have been the subject of at least 20 federal investigations or reviews. These factors have led to concerns about potential conflicts of interest arising from a Musk-led federal commission.
Sharing an NY Times graphic, Reich asked, “What do you think he’ll cut first in the name of efficiency — the billions of dollars in government contracts his corporations control or your Social Security and Medicare benefits?”
Why It Matters: As the department promises to restructure federal agencies and reduce government spending, it is still unclear if the committee would come under the Federal Advisory Committee Act, which dictates how external groups that advise the government must operate and be accountable to the public.
"Since this is not an official Cabinet or US government position and it’s essentially newly created, there will be NO changes to Musk's CEO roles with Tesla and SpaceX importantly from the Street's perspective," said Wedbush's Dan Ives.
Such external advisory committees have played an important role in shaping federal programs and policies in the past; former presidents Ronald Reagan and Bill Clinton established similar task forces. However, it is still ambiguous how President-elect Trump, along with unconventional businessman Elon Musk and former presidential candidate Vivek Ramaswamy, will structure and lead this committee.
Image via Flickr/ Wikimedia Commons
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