Business
DOGE Theory
One of the most intriguing developments following Donald Trump’s election victory has been the announcement of Elon Musk and Vivek Ramaswamy’s Department of Government Efficiency, or DOGE. The initiative, which hopes to cut up to $2 trillion from the federal budget, has generated notable excitement, momentum, and memes. The world’s richest man and a successful biotech entrepreneur, Ramaswamy, have revitalized what seemed to be a mostly dormant libertarianism, drawing on the inspiration of Milton Friedman and promising to slash the bureaucracy to the bone. But what are its prospects for real-world success?
Elon Musk is our era’s most gifted entrepreneur, having revolutionized several industries and run multiple major companies. But the private sector operates on radically different principles than the public sector, which has a way of stalling or disarming even the most determined efforts. I foresee three potential impediments to DOGE’s success.
First is the problem of authority. While President-elect Trump has dubbed the effort the “Department of Government Efficiency,” it is not a government department at all. Rather, Musk and Ramaswamy will remain in the private sector and preside over what is, in effect, a blue-ribbon committee providing recommendations to the president and to Congress about potential cuts. In practice, though, blue-ribbon committees are often where ideas go to die. Politicians who feel the need to “do something” about a given problem often establish such committees to create the perception of action, which masks their true desire or, at least, the eventual result: inaction.
DOGE’s challenge will be to translate its recommendations into policy. It is almost certain that an entrepreneur of Musk’s ambition will not be content with writing a report. His and Ramaswamy’s task, then, is to persuade the president and the director of the Office of Management and Budget to enact real (and politically risky) cuts, and, if possible, to persuade Congress to abolish entire departments, such as the Department of Education, in the face of left-wing backlash.
The second problem for Musk and Ramaswamy is public opinion. Libertarians and small-government conservatives have long promised to reduce the size of government; one reason that they have never done so is that federal programs and agencies are generally popular. All of the major federal departments, with the exception of the IRS, the Department of Education, and the Department of Justice, have net-positive favorability numbers. Congressional members, even conservative Republicans, fear that slashing these departments would expose them to savage criticism from the Left and backlash from voters. They know that Americans complain about the size of government in theory but oppose almost all spending cuts in practice—the key paradox that libertarians have been unable to resolve.
Musk and Ramaswamy have repeatedly appealed to the work of Argentinian president Javier Milei, who has dramatically reduced the number of departments and created flashy video clips of himself stripping down organizational charts and yelling, “Afuera!” But what is possible in Argentina, which has been mired in a decades-long economic crisis, may not be achievable in the United States, which is much more stable, and, consequently, may not have the appetite for such dramatic action.
Which brings us to the problem of politics. Sending a rocket into space requires mastery over physics, but cutting government departments requires mastery over a more formidable enemy: bureaucracy. As Musk and Ramaswamy will see, the relationship between would-be reformers and Congress is vastly different from that between a CEO and a board of directors. To succeed, Musk and Ramaswamy must persuade a group of politicians, each with their own interests, to assume a high level of risk.
DOGE’s first task—identifying the budget items to cut—is the easy part. The hard part will be actually cutting them. They will have to convince Congress, which, for nearly 100 years, has refused to reduce the size of government, even when that notion had bipartisan support, as it did during the presidency of Bill Clinton, who promised that “the era of big government is over.”
This does not mean that DOGE cannot succeed. Though there may not be an appetite for a $2 trillion reduction in government spending, there is a hunger for targeted cuts that would strip the federal government of hostile ideologies that have made our institutions dysfunctional and our national life worse. For example, slashing grant funding for critical race theory would likely win support from voters; cutting the budget for USDA meat inspectors would not, and, given opportunity costs, would probably prove unproductive as well.
Perhaps the name of this committee—the Department of Government Efficiency—is also slightly off the mark. The problem is not only about efficiency, which suggests quantity, but about orientation, which implies quality. The federal government has long been captured by ideologies that misdirect its efforts. Simply making the bureaucracy more efficient will not solve that problem. DOGE must first determine what federal spending is worthwhile; from there, it can focus on creating “efficiencies.”
I hope that Musk and Ramaswamy can dispel my pessimism. Political realities have stifled countless reform efforts before now, and DOGE is an enterprise that would be difficult, if not impossible, under normal circumstances. But these are two remarkably talented men; if anyone is capable of shattering the mold, they can.
Please share your ideas, dissents, and thoughts in the comments. In the next newsletter, we will feature the best material in a“comment of the week” section. In the meantime, have a wonderful Thanksgiving.
Business
What Do Loyalty Rewards Programs Cost Us?
You’ve certainly been asked (begged!) to join up for at least one loyalty “points” program – like PC Optimum, Aeroplan, or Hilton Honors – over the years. And the odds are that you’re currently signed up for at least one of them. In fact, the average person apparently belongs to at no less than 14 programs. Although, ironically, you’ll need to sign up to an online equivalent of a loyalty program to read the source for that number.
Well all that warm, fuzzy “belonging” comes with some serious down sides. Let’s see how much they might cost us.
To be sure, there’s real money involved here. Canadians redeem at least two billion dollars in program rewards each year, and payouts will often represent between one and ten percent of the original purchase value.
At the same time, it’s estimated that there could be tens of billions of unredeemed dollars due to expirations, shifting program terms, and simple neglect. So getting your goodies isn’t automatic.
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Just why do consumer-facing corporations agree to give away so much money in the fist place?
As you probably already know, it’s about your data. Businesses are willing to pay cold, hard cash in exchange for detailed descriptions of your age, sex, ethnicity, wealth, location, employment status, hobbies, preferences, medical conditions, political leanings, and, of course, shopping habits.
Don’t believe it works? So then why, after all these years, are points programs still giving away billions of dollars?
Every time you participate in such a program, the data associated with that activity will be collected and aggregated along with everything else known about you. It’s more than likely that points-based data is being combined with everything connected to your mobile phone account, email addresses, credit cards, provincial health card, and – possibly – your Social Insurance number. The depth and accuracy of your digital profile improves daily.
What happens to all that data? A lot of it is shared with – or sold to – partners or affiliates for marketing purposes. Some of it is accidentally (or intentionally) leaked to organized criminal gangs driving call center-related scams. But it’s all about getting to know you better in ways that maximize someone’s profits.
One truly scary way this data is used involves surveillance pricing (also known as price discrimination) – particularly as it’s described in a recent post by Professor Sylvain Charlebois.
The idea is that retailers will use your digital profile to adjust the prices you pay at the cash register or when you’re shopping online. The more loyal you are as a customer, the more you’ll pay. That’s because regular (“loyal”) customers are already reliable revenue sources. Companies don’t need to spend anything to build a relationship with you. But they’re more than willing to give up a few percentage points to gain new friends.
I’m not talking about the kind of price discrimination that might lead to higher prices for sales in, say, urban locations to account for higher real estate and transportation costs. Those are just normal business decisions.
What Professor Charlebois described is two customers paying different prices for the same items in the same stores. In fact, a recent Consumer Reports experiment in the U.S. involving 437 shoppers in four cities found the practice to be quite common.
But the nasty bit here is that there’s growing evidence that retailers are using surveillance pricing in grocery stores for basic food items. Extrapolating from the Consumer Reports study, such pricing could be adding $1,200 annually to a typical family’s spending on basic groceries.
I’m not sure what the solution is. It’s way too late to “unenroll” from our loyalty accounts. And government intervention would probably just end up making things worse.
But perhaps getting the word out about what’s happening could spark justified mistrust in the big retailers. No retailer enjoys dealing with grumpy customers.
Be grumpy.
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Business
Largest fraud in US history? Independent Journalist visits numerous daycare centres with no children, revealing massive scam
A young journalist has uncovered perhaps the largest fraud scheme in US history.
He certainly isn’t a polished reporter with many years of experience, but 23 year old independent journalist Nick Shirley seems to be getting the job done. Shirley has released an incredible video which appears to outline fraud after fraud after fraud in what appears to be a massive taxpayer funded scheme involving up to $9 Billion Dollars.
In one day of traveling around Minneapolis-St. Paul, Shirley appears to uncover over $100 million in fraudulent operations.
🚨 Here is the full 42 minutes of my crew and I exposing Minnesota fraud, this might be my most important work yet. We uncovered over $110,000,000 in ONE day. Like it and share it around like wildfire! Its time to hold these corrupt politicians and fraudsters accountable
We ALL… pic.twitter.com/E3Penx2o7a
— Nick shirley (@nickshirleyy) December 26, 2025
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