Key takeaways
– DOGE wasted over 21 billion dollars in six months
– Early retirements cost 14.8 billion dollars
– Severance pay added 6.1 billion dollars
– Freezing loans lost 263 million dollars
– Spoiled supplies cost 110 million dollars
– Long term revenue losses could reach trillions
– Health and aid cuts led to thousands of deaths
Introduction
Elon Musk’s big plan to cut waste in the federal government backfired. He fired hundreds of thousands of workers. He froze funding for key programs. In the end, his plan cost far more than it saved. A new report shows he wasted at least 21 billion dollars in just six months. The plan also risks even bigger losses in the future.
Musk’s Promise versus Reality
At the start of the year, Musk promised major savings. He said fewer workers would mean lower costs for taxpayers. He also claimed that cutting aid and watchdogs would make the government run better. However, spending in 2025 rose above past levels. Studies now warn that these cuts could cost us more. They say lost revenue and higher health costs will outweigh any short term savings.
Huge Layoff Costs
Musk launched the Deferred Resignation Program to force early retirements. He offered benefits through the federal fiscal year end. About 200,000 employees accepted the deal. The government paid them to stay home for eight months. That bill reached 14.8 billion dollars.
In addition, Musk fired another 100,000 workers outright. Those employees got severance pay. The cost for those payouts hit 6.1 billion dollars. Altogether, layoffs and retirements cost 20.9 billion dollars.
Funding Freezes Waste Funds
Musk also froze loans for energy projects. That decision halted many plans across the country. Meanwhile, the government lost out on 263 million dollars in interest and fees. This money would have come from ongoing loan payments.
In another move, Musk shut down key aid warehouses. Food and medicine sat in storage until they spoiled. The total loss there reached 110 million dollars. Officials blame a lack of oversight and planning.
Long-Term Damage to Revenue
While some costs are one time, others grow over years. Cutting thousands of tax agents hits the budget hard. A top university study found this move could cost 395 billion dollars in lost revenue over ten years. If tax evasion rises, losses could reach 2.4 trillion dollars.
Musk also slashed the consumer watchdog agency almost entirely. Since its start in 2011, this agency returned 26 billion dollars to people. It cost much less to run. By eliminating its staff, the government lost future returns to consumers.
Health research took a big hit too. Funding to major health labs dropped sharply. A recent study warned that this cut could cost the economy 16 billion dollars and 68,000 jobs each year. The lost discoveries may also slow medical progress.
Aid Cuts Worsen Global Crises
Musk cut 125 million dollars from foreign aid programs. The White House said this action has no value for Americans. Yet experts predict a 29 billion dollar loss for U.S. groups that depend on aid. These programs support jobs and trade in America too.
More importantly, the human toll is severe. Aid cuts left millions without food and water. Preventable diseases spread in areas that lost medical supplies. Hundreds of thousands have already died. By decade’s end, experts fear up to 14 million deaths could result.
Political and Public Backlash
Critics blasted Musk’s actions as reckless. Lawmakers point out that while he cut public health and safety nets, he added trillions to the deficit. His supporters argued that big changes are needed. Nonetheless, evidence shows the cuts did not boost efficiency. Instead, they drove up costs.
Some political figures say these cuts were never about saving money. They claim Musk aimed to reshape government power. In fact, a major spending bill coming soon may add 3.4 trillion dollars to the deficit. That is far more than what Musk claimed to save.
Lessons Learned
First, deep cuts can backfire if they remove key services. Second, rushing layoffs without plans leads to huge upfront costs. Third, starving research and aid hurts long-term growth. Finally, losing revenue sources can dwarf any short term spending cuts.
Moving Forward
If the goal is true efficiency, leaders must plan carefully. They should weigh immediate savings against future losses. They need to keep teams that bring in revenue. They should also protect public health and aid programs. By doing so, they can avoid waste and secure real savings.
Conclusion
Musk’s federal shakeup cost taxpayers more than it saved. The six month price tag reached over 21 billion dollars. Future revenue losses could climb into the trillions. Worse still, thousands of people have suffered or died due to lost aid. Rather than cutting waste, this overhaul created far bigger problems. It shows that bold plans need solid analysis and a focus on real results.