Can DOGE Fix This? We’ll Find Out Soon!
By Graham Summers, MBA | Chief Market Strategist
More Department Of Government Efficiency (DOGE) news.
As the Trump administration prepares to take office on January 20, 2025, more and more data points detailing the egregious fraud, waste, and abuse in government spending are being made public.
Consider…
The Federal Government spends $15 billion per year on office buildings/ energy costs, not to mention hundreds of millions if not billions of dollars on office furnishings. Despite this massive overhead, the government is current sitting on over 7,000 vacant office buildings as most Federal government employees are still allowed to work from home.
Bear in mind, the pandemic ended over 18 months ago.
Having said that, the primary issue as far as government waste is concerned isn’t the number of Federal employees which hasn’t grown by much over the last 20 years… rather it’s the government spending, particularly on ludicrous projects/ programs that offer little if any real benefit to society.
Some of the more disturbing items DOGE has noted…
- Congress dispensed $516 billion to programs whose authorizations previously expired under federal law. Over half of that ($320 billion) pertained to programs whose authorizations expired over a decade ago.
- The Pentagon has failed its 7th STRAIGHT AUDIT and is unable to account for where $824 BILLION in spending went. That’s roughly the same size as Poland’s GDP.
- In 2023, federal programs made $236 billion in improper payments. That’s billion with a “b.”
- Some $200 billion in pandemic spending/ stimulus went to fraud/ abuse whether it be companies that didn’t qualify for PPP loans, fake companies that didn’t even exist, etc.
These are just the LARGE line items of note. Once you start delving into the smaller, individual programs the government funds, things go from disturbing to ludicrous.
Some of the worst of the worst that DOGE has highlighted on X (formerly Twitter).
- $45 million for a diversity and inclusion scholarship in Burma
- $3 million for “girl-centered climate action” in Brazil
- $288,563 for diverse bird watcher groups
- $100,000 to study if tequila or gin makes sunfish more aggressive
- Almost $1 million to study if cocaine makes Japanese quail more sexually promiscuous
- $750,000 to study if Neil Armstrong said “One small step for Man” or “One small step for ‘a’ man” during the moon landing.
- $28 million in licensing fees for a green camouflage pattern for Afghan National Army uniforms. Bear in mind, the “camouflage” didn’t work as Afghanistan is mostly desert.
- $2.5 million on a Super Bowl Ad for the Census
- $1.7 million for holograms of dead comedians
- $500,000 to build an IHOP in Washington, DC
And on and on.
The mere fact DOGE is bringing these items to the public’s consciousness is a worthy endeavor. Hopefully, DOGE can get rid of this stuff and get government spending under control. As we write this, the Federal debt has cleared $35 TRILLION and is adding $1 trillion in new debt every 100 days.
This spending isn’t free. Interest payments on the federal debt have cleared $1 trillion per year and are now the largest line item in our annual federal budget. If DOGE doesn’t get government spending under control, a debt crisis is coming sooner rather than later.
The one thing that IS clear is that DOGE would improve the U.S. fiscal situation. This would remove one of the biggest concerns for the stock market (the U.S. debt mountain/ massive deficits) and open the door to new highs.
On that note, we just published a Special Investment Report detailing that, as well as the #1 investment to own during Trump’s 2nd Term.
We are selling this report as a standalone item for $499… but you can pick up a copy FREE simply by joining our daily market commentary, Gains Pains & Capital.
We are making only 99 copies available to the public.
As I write this, there are only 54 left…
To pick up yours…
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research