In fact, what can DOGE do? By Investing.com

Investing.com – The announcement of the Department of Government Operations (DOGE), led by Elon Musk and Vivek Ramaswamy, has attracted public attention and speculation about its ability to transform government operations.

However, according to the critics Barclays (LON:), the extent of DOGE’s influence may be less than its advocates suggest.

Contrary to its title, DOGE is not a formal government agency. Its role is advisory, it has no legal or executive power to enforce its recommendations.

Without congressional approval or direct legislative support, its power is limited to making proposals rather than implementing change.

DOGE’s possible actions include highlighting areas of government inefficiency, such as waste, fraud and abuse, and proposing reforms in government operations.

These proposals may lead to reductions in government employees through measures such as voluntary buyouts, early retirement, or temporary employment.

The group may also identify federal assets that are sold or transferred as a means of reducing costs.

However, its actual power to effect these changes is negligible. For example, proposals to cut government spending or restructure government agencies require bipartisan support — a tall order in the current political climate.

Even identifying and dealing with “waste” is not an easy task; Previous efforts by similar commissions have yielded limited results due to legal, administrative and political obstacles.

Congress has “power of the purse,” meaning that major cuts in government spending require legislative approval.

While discretionary spending, particularly in hedge funds and non hedge funds, could theoretically be reduced, achieving this would require a level of bipartisanship that appears to be mutually exclusive. impossible.

Mandatory spending, which makes up the bulk of government funding, may be less influenced by the DOGE.

Programs like Social Security and Medicare are politically sensitive and legally protected from individual cuts.

Similarly, efforts to reduce or reform government operations are subject to strict procedures established under the Administrative Procedures Act.

Reinstatement would need to be accompanied by a lengthy legislative or litigation process.

Despite claims from Ramaswamy that DOGE is set to cut government employees by 75%, the likelihood of the move remains in doubt.

Most federal employees are protected by civil service laws that prevent unfair dismissal.

In addition, about 70% of government employees work in defense or national security roles, areas that are difficult to reduce politically.

Previous measures to reduce the government’s workforce have proven to be ineffective or counterproductive, often resulting in increased costs and reduced operational efficiency.

DOGE’s tangible contributions can come from identifying opportunities for process improvement.

Government agencies spend a lot of money to maintain outdated IT systems, and upgrading them can generate long-term savings.

According to the Government Accountability Office, there is the potential to save billions through improved enforcement measures, although such measures may require upfront investment and Congressional approval.

Finally, Barclays analysts stress that DOGE’s influence is more symbolic than practical.

It can use its platform to draw attention to inefficiencies and advocate for improvements, but its recommendations will remain non-binding.

Achieving significant change will require navigating a complex web of legal and political obstacles that go beyond the DOGE’s advisory fee.