Highlights:
- Brian Armstrong sees D.O.G.E as a unique opportunity for America.
- Trump named Musk and Ramaswamy to lead the Efficiency Department.
- D.O.G.E aims to cut government spending.
In an X post on Nov. 17, Brian Armstrong, Coinbase CEO, said President Donald Trump’s newly created Department of Government Efficiency (D.O.G.E) is a lifetime opportunity. Armstrong emphasized that the ‘DOGE’ could enhance economic freedom in the U.S. and reduce the size of government to a healthier level.
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He said government spending could be limited to just 10% of the gross domestic product (GDP). Armstrong pointed out that federal spending had more than doubled over the past few years. Consequently, he proposed that the constitution should be amended to address this issue.
He said:
“The founding fathers were geniuses but (with humility) may have missed the adverse incentives which grow the size of democratic government over time (winning elections by promising more free stuff).”
Armstrong noted that if the federal budget is unbalanced, Congress members who vote for it should not be allowed to run for re-election. Therefore, the government needs proper incentives to control the budget in the long run. He also proposed creating a sovereign wealth fund in the U.S., where every citizen would have a share. Budget surpluses would provide dividends to shareholders, giving everyone a stake in the outcome. “Maybe Congress gets a slightly larger stake,” Armstrong added.
. @DOGE is a once in a lifetime opportunity to increase economic freedom in the U.S. and cut the size of government back to health.
The founding fathers were geniuses but (with humility) may have missed the adverse incentives which grow the size of democratic government over…
— Brian Armstrong (@brian_armstrong) November 17, 2024
Trump Taps Musk and Ramaswamy for D.O.G.E
On Aug. 20, U.S. President-elect Donald Trump suggested bringing Elon Musk into his cabinet or giving him an advisory role starting in January 2025. Trump did not mention which department he would assign the Tesla CEO to at that time. On Nov. 13, Trump officially announced that Musk and Ramaswamy would lead a newly created agency, the Department of Government Efficiency. The agency aims to improve federal operations, reduce regulations, cut waste, and restructure government agencies.
— Elon Musk (@elonmusk) November 13, 2024
Despite its name, the department won’t be a government agency. Trump said Musk and Ramaswamy will work independently. Both will provide guidance and advice to the White House. They will collaborate with the Office of Management and Budget to drive reforms and bring an entrepreneurial mindset, aiming to disrupt current government systems.
On November 16, Elon Musk excited the market with positive comments about D.O.G.E on X. His remark, “Starting to feel like The DOGE has real potential,” boosted Dogecoin.
Starting to feel like The @DOGE has real potential
— Elon Musk (@elonmusk) November 16, 2024
The remark DOGE could enhance “economic freedom” followed Cameron Winklevoss’ views on the department. Cameron stressed that the new department will tackle rising prices. He called inflation a “silent tax” that affects low-income Americans the most. He warned that inflation threatens economic fairness and sustainability and requires an innovative solution to prevent wealth destruction and economic burden. U.S. inflation rose by 2.6% year-over-year last month, up from 2.4% in September.
Dogecoin Surges After Trump’s Victory
Though the government department shares a similar acronym with the Dogecoin (DOGE) ticker, it is not connected to the memecoin. However, Dogecoin experienced a surge after the announcement. A day after Musk’s post about the agency, DOGE hit a yearly high of $0.39 before experiencing a slight correction.
DOGE jumped from $0.15 to $0.43 after Trump’s victory, hitting a three-year high. At the time of writing, DOGE was trading at $0.3742, showing a 5.16% increase in the last 24 hours.
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