Investor Peter Schiff raised concerns about the viability of the Department of Government Efficiency (DOGE), a concept proposed during the Trump administration. According to Schiff, DOGE isn’t a legitimate government department, but rather an external think tank without any legal power to implement changes. The department could make recommendations, but ultimately, the government would be under no obligation to adopt them. Furthermore, any proposals would require congressional approval, which Schiff deems highly unlikely, given the political landscape.
Schiff argues that the proposal to cut government departments or eliminate inefficiencies faces steep opposition, especially in Congress, where Democrats are unlikely to support such cuts. Even among Republicans, the division between traditional conservatives and moderates (RINOs) presents significant hurdles. In the Senate, the lack of a 60-vote majority further complicates efforts to enact such reforms. Even if cuts were proposed, civil service unions would pose a major challenge to firing government employees, leaving attrition as the only feasible solution for shrinking the workforce.
Looking ahead, Schiff predicts that the Republican Party’s prospects for enacting meaningful reforms will diminish further, particularly if they lose control of the House in the upcoming midterms. With economic challenges like stagflation likely intensifying, Schiff foresees disappointed voters turning toward change, but believes that real systemic changes will only occur in response to a full-blown dollar and sovereign debt crisis.
