A recent report by Bank of America (BAC) suggests that Elon Musk’s Dogecoin (DOGE) may have a gradual impact on government spending, leading to job cuts and economic growth. Economists Stephen Juneau and Shruti Mishra estimate that the US government has already reduced its workforce by about 100,000 employees, resulting in annual cost savings of approximately $20 billion.
While the effects of DOGE’s actions are modest so far, with the most visible example being the elimination of USAID, researchers believe that a drag on spending will accumulate over time. However, it is essential to note that actual savings won’t be fully realized until October as many dismissed employees will still receive pay through the end of the fiscal year.
The Bank of America report cautions that any significant cuts in federal spending would need to come through Congress and the budget reconciliation process. The researchers will continue to monitor the data, but for now, the impact on near-term economic growth appears minimal.
Source: https://qz.com/us-doge-musk-federal-job-cuts-economic-effect-1851767092