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The Rise and Fall of DOGE: When Politics, Ego, and Economics Collide

by Ram ben Ze'ev



The Rise and Fall of DOGE: When Politics, Ego, and Economics Collide
The Rise and Fall of DOGE: When Politics, Ego, and Economics Collide

It was not so long ago that President Donald Trump and his then-ally Elon Musk stood side by side, celebrating what they branded as the Department of Government Efficiency — DOGE — a cheeky nod to Musk’s obsession with Dogecoin and his habit of amplifying jokes until they become headlines. For a time, the two men were perfectly matched: each revelled in spectacle, each thrived on disruption, and each saw in the other a reflection of his own larger-than-life persona. But in any partnership built on ego, there is room for only one performer in the centre of the spotlight. Eventually their mutual admiration curdled into the familiar chorus of blame. In a sense, each insisted on playing the fool so that the other could not.


In the early days of DOGE, Trump and Musk entertained the public with talk of unprecedented savings — a staggering $2 trillion, they said — and floated the idea of issuing a national “dividend” to taxpayers. It was a flashy promise, the sort of headline-friendly claim that energises supporters and fuels endless online speculation. Yet, predictably, that imagined check is still “in the mail,” and even the most enthusiastic optimist should not expect its arrival.



The reason is simple. The United States now carries a national debt exceeding $37 trillion and an annual deficit north of $1.78 trillion. Even if DOGE had managed to save the full amount Trump advertised — and it has not — sending out taxpayer dividends would still require the government to borrow money. A dividend funded by new borrowing is not a saving; it is another liability dressed in campaign rhetoric.


Complicating the picture further are President Trump’s new tariffs. Since he returned to office in January, the U.S. Dollar Index — the standard measure comparing the dollar to a basket of major global currencies — has recorded a 10–11% decline. That matters profoundly. A weaker dollar means higher costs for imported goods and more expensive repayment of foreign-held debt — especially debt owed to countries like China. It affects every American household, whether they realise it or not.


Meanwhile, the U.S. Supreme Court is weighing the legality of Trump’s tariff regime. Whatever the outcome, the uncertainty alone has contributed to volatility in the dollar’s value, and the broader economic consequences will be felt long after the ruling is delivered.


Into this fog of economic confusion enters another twist. Reuters recently reported that DOGE is no longer operating inside the government. The official DOGE account on X promptly declared the report “fake news,” a response that sounded suspiciously like the President himself. What is certain is this: DOGE has failed to achieve anything resembling $2 trillion in savings, and the once-touted idea of taxpayer dividends from those savings has evaporated.



What we have instead is a new promise. President Trump now says he will send out $2,000 dividends funded by the tariffs he claims are being paid by foreign nations. But tariffs are paid by Americans — not by China, not by Europe, not by “other countries.” They are paid by U.S. consumers buying taxed goods. According to the Tax Foundation, the Trump tariffs amount to an average tax increase of $1,200 per household in 2025 and $1,600 in 2026. Even if the government ultimately distributes more than $600 billion in tariff-funded dividends, that money will need to be borrowed. It will not offset the increased costs borne by families, nor will it account for the long-term interest payments attached to the additional borrowing.


President Trump has said the payments will arrive before the 2026 midterms. The irony is sharp: were the roles reversed, he and his supporters would accuse Democrats of “buying votes” with taxpayer money — and with the money of their great-grandchildren, who will inherit the compounding interest on today’s political theatre.


DOGE was marketed as a bold new era of efficiency. Instead, it has become a case study in the cost of spectacle over substance. The American people are still footing the bill — in higher prices, in a weaker dollar, in expanding debt, and in promises that dissolve as quickly as they are made.



>>>> BUY ME A COFFEE <<<<


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