Contribution to The Wall Street Journal on Government Efficiency Department Operation Plan
"Can Reduce Federal Spending by $500 Billion"
Elon Musk, CEO of Tesla, who has been appointed as the head of the Department of Government Efficiency (DOGE) in the second Trump administration, announced that he will abolish remote work to reduce the number of government employees. It appears that the specific operational plans of the Department of Government Efficiency for the 'small government' reform are gradually taking shape.
On the 20th (local time), Musk and Vivek Ramaswamy, co-heads of the Department of Government Efficiency, wrote in an op-ed for the Wall Street Journal (WSJ) that "excessive federal regulations and wasteful spending stem from millions of unelected, unappointed bureaucrats rather than the democratically elected president," and added, "The two of us will advise the president to pursue three major reforms in the Department of Government Efficiency: deregulation, administrative reduction, and cost savings."
They stated, "By cutting spending that Congress has not approved or intended, federal expenditures can be reduced by more than $500 billion," citing targets for cuts such as the Corporation for Public Broadcasting (CPB) budget of $535 million, $1.5 billion in international organization support funds, and $300 million in subsidies to progressive groups. They also emphasized, "Federal agencies will be required to identify the minimum staff necessary to perform constitutionally permitted and legally mandated functions," and stressed, "At least as many federal employees as the number of federal regulations eliminated should be laid off."
As a measure to reduce the number of federal employees, the abolition of remote work was proposed. They said, "If federal employees are required to come to the office five days a week, many will voluntarily quit, and we welcome that," pointing out that salaries should not be paid to those who refuse to come to the office. However, they added that "we will assist displaced employees in transitioning to the private sector," and that the president could offer incentives for early retirees.
This is the first time the two, who had previously presented fragmented federal reform plans through social media or media interviews, have clearly summarized the vision of the Department of Government Efficiency in an official media op-ed. Earlier, Musk had stated that $2 trillion could be cut from the federal budget, and Ramaswamy had proposed firing all federal employees whose Social Security numbers end in an odd digit, cutting the workforce by 50%.
Notably, Musk is well known in the industry as a boss who demands high work intensity and is negative about remote work. In early 2022, shortly after acquiring X (formerly Twitter), he sent an email to employees declaring a ban on remote work, stating "you must work long hours at high intensity," and reportedly also required Tesla executives to come to the office. In an interview with the media early the following year after acquiring X, Musk revealed that 6,000 employees, or 80% of the workforce, had been laid off.
CNN evaluated the remote work abolition plan as "a strategy to save the next Trump administration's government budget by encouraging many federal employees to voluntarily leave." Bloomberg, citing reports, analyzed that "due to still high office vacancy rates, economic activity in Washington D.C. remains at 68% of pre-pandemic levels," and stated, "If federal employees return to the office, it could revitalize the local economy."
However, resistance is also expected to be significant. Major foreign media reported that "federal employee unions, anticipating mass layoffs, are hiring lawyers and preparing public campaigns," and "they are hoping that the Republican-controlled Congress will intervene as a mediator." Currently, about 2 million employees are employed by the U.S. federal government, of whom approximately 1.3 million have been approved for remote work.
Meanwhile, Musk posted a clarification on his X (formerly Twitter) account on the same day regarding criticism of excessive involvement in personnel appointments. He said, "I really enjoy spending time with President Trump, and he is a great person with an excellent sense of humor," adding, "I did offer opinions on some cabinet nominees, but many appointments were made without my knowledge, and the decisions were 100% the president's (Trump's)." He continued, "It is also important to note that there are many loyal and good people at Mar-a-Lago who have worked for him for a long time," emphasizing, "People are sometimes skilled at hiding their bad morals, but they cannot hide the morals of their friends or colleagues."
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