Key Insights:
- Elon Musk resigned as head of the Department of Government Efficiency (DOGE).
- Musk’s mission to cut federal spending proved harder than expected, with reported savings being disputed by independent analysts.
- DOGE’s efforts led to significant federal workforce reductions that affected nearly 12% of government employees.
Elon Musk has resigned as head of the Department of Government Efficiency (DOGE). His role was to cut federal spending and reduce government jobs. He admitted the task was more difficult than anticipated.
Musk’s departure marks the end of his brief tenure in government. Here are the details of this change and how Dogecoin has reacted so far.
Why Musk Took the Role
Musk was appointed Special Government Employee under President Donald Trump’s administration. Elon Musk led DOGE, intending to cut $2 trillion from the federal budget.
The task force was designed to eliminate wasteful spending. DOGE also aimed to streamline government operations. Its name comes from the well-known memecoin.
Legally, Musk’s appointment was limited to a maximum of 130 days, and that term was set to expire on 30 May. However, it’s clear that the challenges of the job, not just the timeline, were more than enough to cause Musk’s early departure.
In a 29 May post on X (formerly Twitter), Musk thanked Trump “for the opportunity to reduce wasteful spending.” A White House official also confirmed that Musk’s “off-boarding will begin tonight.”
“An Uphill Battle” in Washington
Musk’s departure wasn’t entirely surprising. Elon Musk conducted interviews with The Washington Post and CBS before stepping down. He admitted that Washington’s bureaucratic gridlock was worse than he had expected.
Elon Musk called his mission “an uphill battle.” He shared frustrations similar to those faced by others trying to reform the federal system. “It’s been much harder than expected to improve things in D.C., to say the least,” he said.
Musk criticized a tax break package passed by House Republicans, claiming it would worsen the national deficit. He also argued that it would negatively impact DOGE’s mission.
Big Claims, Mixed Results
DOGE claims to have saved taxpayers $175 billion during Musk’s tenure. However, independent analysts and media outlets do not accept that figure. Some of these have pointed out major errors and discrepancies in calculating those savings.
Musk set out to cut $2 trillion from the federal budget. That target was later revised to $150 billion; even then, the reported savings still fell short. Nonetheless, DOGE managed to make an impact on the federal workforce.
According to Reuters, nearly 12% of the government workforce, or roughly 260,000 employees out of 2.3 million were affected through layoffs, early retirement packages, or buyouts. Despite these results, critics say the cuts may have gone too far and too fast.
Legal Troubles Loom
Musk’s time in government wasn’t just difficult. It also came under legal fire. A federal judge recently allowed a lawsuit against Musk and DOGE, in which both were accused of unlawfully exercising authority over federal operations.
The lawsuit, filed by 14 U.S. states, claims Musk and DOGE misused their legal standing by accessing sensitive government systems, firing federal workers, and canceling contracts without due process.
These accusations put Musk’s short-lived involvement in public service at risk. They also spark debate about the limitations of private individuals in government roles.
Dogecoin Price Outlook
Interestingly, while the D.O.G.E shares a name with Dogecoin (DOGE), Musk had no direct connection to the cryptocurrency while in office. Still, DOGE’s price is a hot topic among investors. The memecoin currently trades around $0.22 and flirts with major support levels.
If sellers push the price below the 20-day EMA, the token could slide to $0.21. Investors should remember that a break below could send DOGE down to $0.19.
However, strong buyer support around the $0.21 level could keep it within its current range of $0.21 to $0.26. Investors continue to watch out for what happens next, especially considering Musk’s history with the coin on social media.
