With all of the headlines about the actions of Trump and DOGE trying to cut out “wasteful” jobs with a chainsaw, so far, at least so far as I can tell, no one seems to have given much thought to the secondary and tertiary impacts of those cuts.
A relative of mine was let go last week. He wasn’t a federal employee, nor was he a lobbyist. He was a technical writer for a publishing services company, and he was laid off because one of the company’s larger clients was the Veterans Administration.
What Musk, DOGE, and Trump clearly fail to understand is that, in a great many instances, contrary to popular belief, it’s cheaper for government agencies to contract out services than to do them with government employees.
And even if it’s not, adding additional workloads on agency personnel to accomplish tasks previously contracted out is either going to slow down everything, actually increase costs, or reduce the amount of work done, if not some combination of all three, particularly if the agency is also cutting back on personnel.
Not only that, but the savings from cutting federal employees are limited. In 1960, federal employees were 4.3% of all US workers; today, they amount to only 1.4%. Zeroing out the entire federal payroll would save $271 billion a year, a mere 4% of the federal budget.
I’ve run a Congressional office, and several offices at EPA. I’ve also been a consultant working for some of the largest corporations in the United States, and the greatest waste I’ve seen has largely come from unwise Congressional mandates and laws.
First off, there’s the practice of “earmarking” where Representatives and Senators add or direct appropriations to pet projects in their state or district. A number of organizations and members of Congress have documented such earmarks, and those documented over the last ten years that I’ve been able to total amount to more than 10,000, costing more than $50 billion. And those were the ones I could easily find.
Far more serious are the instances of manipulation of defense funding for local economic development. I can remember the F-7 [The gutless Cutlass] mess from when I was a Navy pilot, because older pilots were still talking about the fact that Congressman Jim Wright (later Speaker of the House) dragged out production of the F-7 so that Chance-Vought would be able to deliver the far superior F-8, which massively increased the cost of the last F-7s, just in time for them to be retired.
More recently, in 2023 the Navy discovered that the so-called advanced littoral combat ships built in Wisconsin by Fincantieri Marinette Marine in partnership with Lockheed Martin, suffered a series of humiliating breakdowns, including repeated engine failures and technical shortcomings in an anti-submarine system intended to counter China’s growing naval capacity. The Navy decided to retire nine out of the ten ships built, because of the astronomical repair costs, telling Congress that would save $4.3 billion that could be used on other ships and systems. Various congressmen got involved, citing the 2,000 jobs that would be lost. In the end the Navy was only allowed to retire four ships and $3 billion more was allocated for repairs. – for ships originally budgeted to cost $220 million each and which eventually cost over $500 million each – before the $3 billion in repair costs.
Then there are the massive cost overruns associated with the F-35, and the Ford class of aircraft carriers, not to mention the cost of maintaining 750 military bases around the world, a number of which in the U.S. could likely be closed without adversely affecting military readiness – except they won’t be closed because various members of Congress will oppose closings in their states and districts.
But Trump and Musk want to funnel more funds to the armed services, while cutting the civilian logistical base, at a time when the military is having trouble retaining personnel.
None of this makes much sense.