This article is by David Walker, a former US Comptroller General.
Contrary to assertions by some, DOGE has not conducted audits. Rather, it has performed targeted and tactical transaction reviews of selected government information systems using artificial intelligence capabilities.
Its objective has been to identify possible fraud, waste, abuse and mismanagement in an effort to cut federal spending. Musk announced a goal to save $2 trillion, but this was later reduced to $1 trillion and then to $500 billion, which has still proven to be overly optimistic. DOGE now claims to have achieved about $160 billion in savings, but this number may be significantly overstated based on the evidence provided…
While DOGE has so far fallen far short of any of its financial goal, it has brought some important things to light. For example, it has uncovered a number of concrete examples of significant waste in the federal government, and it has re-exposed many of its operational problems, such as outdated information systems and inadequate internal controls. A vast majority of these operational problems were previously identified by the Government Accountability Office and various inspectors general.
So, they just tried to feed all the government’s data into an AI and identify some waste, fraud, and abuse. On the face of it, it doesn’t seem like such a terrible job to do that routinely, or just add it to the audit toolbox as this guy is suggesting. So why all the drama and general crazy?
It occurs to me though that the approach was shockingly ignorant in many ways. They seem to have assumed that nothing the government does has any benefits, only costs, and therefore any reduction in spending would be a savings. Government accounting in general does not distinguish between spending and investment, which has always been a problem. I could “save” money by not going to the dentist any more, for example, but I would pay for it many times over both in money and pain sometime in the not too distant future.
The Clinton-Gore administration executed a rational, effective, and somewhat brutal government efficiency campaign in the 1990s. You can hear about it on Planet Money: The Last Time We Shrank the Federal Workforce.
Rationally speaking, the government should step in to improve citizens’ lives where private markets are obviously not able to deliver, like on health care, child care, education, fundamental research, unemployment and disability insurance, and retirement. It should create a level playing field for businesses large and small, regulate anticompetitive practices, set minimum labor and environmental standards, maintain public safety, and provide for the common defense. It should use a portion of the value added by a healthy economy to do these things, which reinforce the healthy economy in a positive loop. I’m not a genius tech bro but these things are obvious to me.