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Musk vs. the bureaucracy vs. Congress: Who has the power to cut spending?

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From The Center Square

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The Trump administration’s all-of-Washington shake-up has resulted in hundreds of lawsuits and cries of a “constitutional crisis,” with Elon Musk’s Department of Government Efficiency at the heart of many complaints from Democrats.

Critics of the department say its on shaky legal footing and have questioned whether Musk’s role violates the U.S. Constitution, as higher-ranking government officials often must be appointed by the president and confirmed by the Senate. The White House has maintained that, despite Musk being the public face of the department and seemingly directing its activities, he is only a “special government employee.” As such, he isn’t subject to a Senate confirmation.

But legal experts disagree on Musk’s role and authority within the federal government.

The Pacific Legal Foundation’s Michael Poon works for the foundation’s separation of powers practice group. Now that the White House has revealed the identity of the DOGE’s administrator as Amy Gleason, a healthcare technology executive who served under Presidents Donald Trump and Joe Biden, Poon likened Musk’s role to that of a “DOGE czar,” or even the president’s chief of staff – neither of which are senate-confirmed positions. Because Musk isn’t the department’s administrator, he doesn’t seem to have any formal authority, according to Poon.

“Agency heads have the power to ignore him because he doesn’t actually have formal power himself,” Poon continued, “but they probably listen because Musk is understood to have the president’s confidence,” similar to other positions Poon mentioned, including Trump’s border czar, Tom Homan, who also isn’t Senate confirmed but works side by side with the Department of Homeland Security. whose secretary, Kristi Noem, is Senate-confirmed.

“This kind of arrangement makes Musk informally powerful, but the power comes from the expectation that the president would back him, not any power that is, sort of, inherent in his position,” Poon said.

While Poon doesn’t think Musk’s role violates any constitutional requirements, he does appreciate the sudden interest the public is taking in the role of unelected federal officials in general. But since their function in the federal government has developed over many decades, it’s unlikely that anything resulting from the DOGE-Musk controversy would go very far in solving the problem.

“It’s appropriate to be scrutinizing of unelected officials and the power that they wield,” Poon said. “But it’s a concern that has been put to the side for the last hundred years, over which both major parties have worked to weaken these protections against unelected officials.”

If Americans want less power and more guardrails for unelected officials, it will take time to achieve, according to Poon.

“I don’t think that, as the current case law stands, Elon Musk’s role contravenes the Constitution, but if we think those protections should be strengthened…  that’s something that takes a concerted effort and it can’t vary depending on who is in control of the executive branch,” Poon said.

Thomas Berry, director of the Cato Institute’s Robert A. Levy Center for Constitutional Studies, finds the lack of transparency around DOGE and Musk’s role troubling.

“I think there’s very serious concerns about what exactly is happening with DOGE,” Berry said.

A lot of concerns with DOGE have to do with the Appointments Clause, which is the basis for Senate confirmations of presidential appointees and creates a system of accountability.

“The Appointments Clause of the Constitution says that the final decision maker on a lot of issues needs to be either the president or someone appointed by the president and confirmed by the Senate,” Berry said. “When the public perception is that Musk or anyone who’s not Senate-confirmed is making these decisions, you don’t have any elected person to blame.”

Even if the administration were to eventually reveal that the president approved all of Musk’s actions, the lack of transparency now is problematic for the public, according to Berry.

As for questions about Trump’s authority to establish DOGE and Musk’s role within it, President of the Liberty Justice Center Jacob Huebert thinks they’re unfounded.

“Article II of the Constitution gives all executive power to the president,” Huebert said. “As long as the president has ultimate decision-making authority here, I don’t see any problem with that.”

He applauds what he sees as Trump’s revision of the executive branch, bringing it closer to what it was intended to be.

“It’s the president deciding how the executive branch is going to run, which is very much the opposite of how it has long been run, where the bureaucracy is kind of leading things even though the bureaucracy doesn’t have any constitutional authority whatsoever,” Huebert said.

As far as Trump’s efforts to cut government spending through DOGE, Huebert’s unsure how it will play out, though he thinks it’s a valiant aim. The Constitution grants Congress power over the government’s purse, and some lawsuits are challenging the president’s attempts to cut spending that Congress has already appropriated. Even if DOGE were able to get federal agencies to cut their budgets and the courts ruled in their favor, Huebert thinks it will be difficult to motivate Congress to pass significantly smaller budgets.

“That to me seems like the biggest challenge for DOGE if part of the goal is to cut spending because Congress really likes to spend, including most of the Republicans in Congress, and the reasons that they’ve had to spend so much money have not gone away,” Huebert said. “All the incentives to spend, or most of them, are still there. So I don’t know how Trump or Elon Musk, if they want to bring it under control, can bring it under control.”

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Upcoming federal budget likely to increase—not reduce—policy uncertainty

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From the Fraser Institute

By Tegan Hill and Grady Munro 

The government is opening the door to cronyism, favouritism and potentially outright corruption

In the midst of budget consultations, the Carney government hopes its upcoming fall budget will provide “certainty” to investors. While Canada desperately needs to attract more investment, the government’s plan thus far may actually make Canada less attractive to investors.

Canada faces serious economic challenges. In recent years, the economy (measured on an inflation-adjusted per-person basis) has grown at its slowest rate since the Great Depression. And living standards have hardly improved over the last decade.

At the heart of this economic stagnation is a collapse in business investment, which is necessary to equip Canadian workers with the tools and technology to produce more and provide higher quality goods and services. Indeed, from 2014 to 2022, inflation-adjusted business investment (excluding residential construction) per worker in Canada declined (on average) by 2.3 per cent annually. For perspective, business investment per worker increased (on average) by 2.8 per cent annually from 2000 to 2014.

While there are many factors that contribute to this decline, uncertainty around government policy and regulation is certainly one. For example, investors surveyed in both the mining and energy sectors consistently highlight policy and regulatory uncertainty as a key factor that deters investment. And investors indicate that uncertainty on regulations is higher in Canadian provinces than in U.S. states, which can lead to future declines in economic growth and employment. Given this, the Carney government is right to try and provide greater certainty for investors.

But the upcoming federal budget will likely do the exact opposite.

According to Liberal MPs involved in the budget consultation process, the budget will expand on themes laid out in the recently-passed Building Canada Act (a.k.a. Bill C-5), while also putting new rules into place that signal where the government wants investment to be focused.

This is the wrong approach. Bill C-5 is intended to help improve regulatory certainty by speeding up the approval process for projects that cabinet deems to be in the “national interest” while also allowing cabinet to override existing laws, regulations and guidelines to facilitate such projects. In other words, the legislation gives cabinet the power to pick winners and losers based on vague criteria and priorities rather than reducing the regulatory burden for all businesses.

Put simply, the government is opening the door to cronyism, favouritism and potentially outright corruption. This won’t improve certainty; it will instead introduce further ambiguity into the system and make Canada even less attractive to investment.

In addition to the regulatory side, the budget will likely deter investment by projecting massive deficits in the coming years and adding considerably to federal debt. In fact, based on the government’s election platform, the government planned to run deficits totalling $224.8 billion over the next four years—and that’s before the government pledged tens of billions more in additional defence spending.

growing debt burden can deter investment in two ways. First, when governments run deficits they increase demand for borrowing by competing with the private sector for resources. This can raise interest rates for the government and private sector alike, which lowers the amount of private investment into the economy. Second, a rising debt burden raises the risk that governments will need to increase taxes in the future to pay off debt or finance their growing interest payments. The threat of higher taxes, which would reduce returns on investment, can deter businesses from investing in Canada today.

Much is riding on the Carney government’s upcoming budget, which will set the tone for federal policy over the coming years. To attract greater investment and help address Canada’s economic challenges, the government should provide greater certainty for businesses. That means reining in spending, massive deficits and reducing the regulatory burden for all businesses—not more of the same.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Grady Munro

Policy Analyst, Fraser Institute
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Poilievre: “Carney More Irresponsible Than Trudeau” as Housing, Jobs, and Energy Failures Mount

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The Opposition with Dan Knight

Dan Knight's avatar Dan Knight

50,000 lost manufacturing jobs, 86,000 more unemployed, soaring housing costs, and blocking every LNG project while vowing to end the TFW program

Pierre Poilievre opened his press conference with a direct attack on Mark Carney and the Liberal record on housing, framing the crisis as the product of government mismanagement rather than market forces.

He began by pointing to Conservative MP Scott Aitchison, a former mayor, as an example of what can be done when local leaders “cut the taxes and the development charges and the wait times so that building can happen.” Then came the pivot: “What a contrast with Justin Trudeau — excuse me, with Mark Carney,” he said, before slamming Carney’s choice of Gregor Robertson as housing minister. Robertson, he reminded the crowd, presided over a 149% increase in Vancouver housing costs and more than doubled homebuilding taxes. Carney, Poilievre said, rewarded that record by handing him the national housing file.

The setting itself — Deco Homes, a family-run builder founded by Italian immigrants — was chosen deliberately. Poilievre praised the Gasper family for their role in building Canada’s homes and businesses, but then asked whether such families could do the same today. His answer was no. “After a decade of Liberal taxes, Liberal spending, out-of-control Liberal immigration, reckless crime policies… the Canadian promise is really broken.”

From there, he broadened the attack. He spoke of an entire generation priced out of homeownership, of immigration growing “three times faster than housing and jobs,” of crime rising, and of what he called “the worst economy in the G7.” And then he turned squarely on Carney: “Mr. Carney is actually more irresponsible than even Justin Trudeau was,” citing an 8% increase in government spending, 37% more for consultants, and 62 billion dollars in lost investment — the largest outflow in Canadian history, according to the National Bank.

The message was simple: Liberals talk, Conservatives build. Poilievre painted Carney as a man of speeches and promises, not results. “The mistake the media is making is they’re judging him by his words rather than his deeds,” he said.

It was an opening statement designed less to introduce policy — those details came later — and more to frame the battle. For Poilievre, Carney isn’t just Trudeau’s replacement. He’s Trudeau’s sequel, and in some ways worse.

During the Q and A portion of the presser; Pierre Poilievre was pressed on immigration today, and what he said was blunt. Canada, he argued, once had the “envy of the world” system: immigrants came in at numbers the country could absorb. There were jobs, housing, health care. Everyone integrated. Ten years later? He says the Liberals have destroyed that.

The facts he used were stark. According to Poilievre, Canada is bringing in people three times faster than homes and jobs are being created. He accused the government of allowing “massive abuses” of the international student program, the Temporary Foreign Worker program, and asylum claims, with what he called “rampant fraud” right under Ottawa’s nose.

He tied this directly to the economy: youth unemployment, he said, is the worst in three decades. At the same time, employers are importing more temporary foreign workers than ever, this year at a record high and using them for cheap labor under poor conditions. His line: “While our young people can’t find jobs, employers are able to exploit temporary foreign workers by giving them lower wages and terrible working conditions.”

But here’s the part that stands out politically. Poilievre said, “Immigrants are not to blame.” He put the responsibility squarely on Liberal governments, calling their immigration numbers “reckless and irresponsible.”

His fix? End the Temporary Foreign Worker program. Cut immigration levels back to “the right numbers and the right people” to fill jobs Canadians can’t do. Tighten border standards to keep criminals out. And, in his words, “always and everywhere put Canada first.”

Pierre Poilievre didn’t hold back when asked about Mark Carney’s record. His words: “Mr. Carney is actually more irresponsible than even Justin Trudeau was.” That’s not a throwaway line, he backed it with numbers.

According to Poilievre, Carney inherited what he called a “morbidly obese government” from Trudeau and made it worse: 8% bigger overall, 37% more for consultants, and 6% more bureaucracy. He says Carney’s deficit is set to be even larger than Trudeau’s.

Then the jobs number: 86,000 more unemployed people under Carney than under Trudeau. That, Poilievre argued, is the real measure, not the polished speeches Carney gives. His line: “The mistake the media is making is they’re judging him by his words rather than his deeds.”

He also went after Carney for what hasn’t happened: “He has not approved a single major national project.” Meanwhile, Poilievre says food price inflation is even worse today, crime policy hasn’t changed the same “catch and release” approach and every big promise Carney made has already been broken.

 

Pierre Poilievre was asked about Ukraine, and his answer wasn’t about speeches or handshakes in Brussels. It was about pipelines.

“The best way to put Canada first while helping Ukraine is to sell our oil and gas in Europe.” His argument: Vladimir Putin bankrolls his war because Europe still buys his fuel. Poilievre said if Canada had built the Energy East pipeline, we’d be shipping a million barrels of oil a day to Europe right now.

He went further: approve LNG plants immediately, liquefy tens of billions of dollars of Canadian gas, and ship it overseas to “fully displace” Russian sales. His line: “Instead of the money going to Putin’s war machine, it will go to the trades workers in this country.”

And then the indictment of the Liberals: “Mark Carney and the Liberals have blocked every single LNG project that has been put before them. As a result, we only have one plant and it was approved by Stephen Harper.”

So the contrast is stark. Carney talks about climate virtue. Poilievre says: build pipelines, sell fuel, kill Putin’s war economy, and pay Canadian workers. His closer: “That is how you put Canada first.”

Final Thoughts

So let’s just be honest. Under Mark Carney’s leadership, the numbers aren’t just bad they’re devastating. In a matter of months, Canada has lost 50,000 manufacturing jobs. These are not low-skill jobs; they are the backbone of the economy, the kind of work that built the middle class in this country. Add to that another 86,000 unemployed overall compared to when he took office. This is what Carney calls stability.

Now, if you’re a Temporary Foreign Worker, life looks pretty good. Ottawa has built an entire system around you cheap wages, little recourse, and companies happy to import you as disposable labor. If you’re a Carney insider, it looks even better. The government is 8% bigger than when Trudeau left, consultants are raking in 37% more, the bureaucracy is swelling. It’s one of the greatest insider rackets in modern Canadian politics.

But if you’re part of Canada’s middle class, if you’re a young person trying to buy a home, if you’re a worker trying to hold onto a job in a plant, a mill, or a construction site you are being hollowed out. You’re watching your wages stagnate, your housing costs explode, your jobs disappear overseas or into government-mandated “green transitions.” And when you ask for answers, what do you get? You get Patty Hajdu telling you not to be afraid of robots. You get Mark Carney telling you his deficits are “investments.” You get speeches about “climate virtue” and “AI literacy” while your livelihood collapses.

That’s the contrast Poilievre is trying to draw. On immigration, he says: let’s end the Temporary Foreign Worker scam, bring people in at a pace we can actually house and employ, and put Canadian workers first. On energy, he says: build the pipelines, approve the LNG projects, and stop funding Putin’s war by leaving Europe dependent on Russian fuel. On the economy, he says: stop measuring success by the size of government or the smoothness of a prime minister’s speeches, and start measuring it by the number of Canadians who can work, buy homes, and raise families in their own country.

So the choice is simple. Carney offers more of the same consultants, insiders, deficits, slogans, and the slow managed decline of a once-prosperous nation. Poilievre is offering something completely different: a chance to reverse the hollowing out of the middle class and to put Canadian jobs, Canadian energy, and Canadian sovereignty first.

If you’re an insider, Carney’s Canada works just fine. If you’re a middle-class Canadian, it’s a disaster. And that, in the end, is the dividing line in this country.

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