Musk Is ‘Shredding’ Government? Not Even Close

As night follows day, Democrats and their champions in the mainstream press have started trotting out their shopworn horror stories about budget cuts. And why not? It’s always worked in the past, turning Republicans’ knees into jelly. President Donald Trump needs to tell them to man up this time, and he can start by calling out the left’s world-is-about-to-end nonsense.

Anyone who follows the news would think that Trump and Elon Musk are carpet bombing the federal government. We keep seeing headlines about how Musk and DOGE are “shredding” and “dissecting” the federal government, about how spending cuts are causing “cruel and senseless devastation,” and the “human toll of the administration’s malevolence and incompetence.”

Reporters are busy scouring the earth for any sob story they can find – or make up – to put a human face on this supposed tragic turn of events, such as those poor federal workers who are confused and scared about having to list five things they did the previous week.

Then there are the repeated proclamations about “growing anger” among the public about the heartlessness of it all – with no evidence to support it – and how this is “putting Republicans in a difficult position.” (Never mind that Trump’s approval rating is currently higher than it ever was in his first term, according to the latest Harvard-Harris poll.)

The cumulative effect of all this is meant to rankle the public and put pressure on GOP lawmakers to make it stop.

Well, it’s time for a reality check.

As is always the case when it comes to cutting federal spending, both sides exaggerate what is going on. The ones cutting spending want the public to think they are hitting bone — witness Musk brandishing his chainsaw at the CPAC convention. The big government types want to play up the supposed harm. The result is usually that little, if anything, actually ends up getting cut.

Which is where we are right now.

Various news agencies have taken it upon themselves to track the number of federal workers who’ve been fired. New York Magazine figures it’s about 30,000.  USA Today guesses that the number could surpass 100,000.

Even if Trump and Musk have managed to cut 100,000 jobs, that’s out of nearly 2.3 million federal workers – a tiny 4% haircut. It’s less than 159,000 jobs President Bill Clinton axed in his first two years in office as part of his “National Performance Review,” to say nothing of the 441,000 federal jobs eliminated over his two terms, according to the Bureau of Labor Statistics.

Stories about DOGE’s “devastating” job cuts also fail to mention that Joe Biden added 140,000 federal jobs during his one term in office. (See chart below.)

What jobs have been cut by Musk and DOGE? According to news accounts:

  • About 6,000 at the Internal Revenue Service – something most taxpayers will rejoice about – but which still leaves more than 80,000 IRS workers in place.
  • The Environmental Protection Agency fired close to 400 employees, which leaves more than 16,000 – who, by the way, earn an average of $130,910 a year, according to DOGE.
  • The 400 newly hired support staff let go at the Federal Aviation Administration represents a cut of less than 1% – and keep in mind that these are hardly “essential workers.”

We could go on, but you get the picture.

What about all those horrifying spending cuts?

Well, despite the hoopla from the left (and from Musk), all Trump has done so far is save a bit of money by catching some fraud, canceling some contracts, renegotiating some leases, selling some assets, and making a few other administrative changes.

DOGE brags that it’s already saved taxpayers $55 billion.

Don’t get us wrong, we are glad anytime federal spending is cut. But $55 billion is barely a rounding error in a $7.3 trillion federal budget and a microscopic reduction in what is expected to be a $1.6 trillion deficit this year.

These minuscule savings can be easily and completely overwhelmed by a tiny increase in interest costs on the national debt or a mild downturn in economic activity. Musk and DOGE will have to do much, much more cutting before they break the skin, let alone reach muscle.

So, spare us the crocodile tears and call us when the real spending and workforce cuts actually happen.

Issues & Insights was founded by seasoned journalists of the IBD Editorials page. Our mission is to provide timely, fact-based reporting and deeply informed analysis on the news of the day – without fear or favor.

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TIPP Takes

Geopolitics, Geoeconomics, And More

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Egypt rejected an Israeli opposition leader’s proposal that it take over the administration of Gaza, calling the idea “unacceptable” and contrary to longstanding Egyptian and Arab policy.

“Any notions or proposals that circumvent the constants of the Egyptian and Arab stance (on Gaza)... are rejected and unacceptable,” the official MENA news agency quoted foreign ministry spokesman Tamim Khallaf as saying, a day after Israel’s Yair Lapid floated the idea.


2. Trump Says Ukraine Joining NATO Is ‘Not Going To Happen’ - Washington Times

President Trump doubled down Thursday on his opposition to Ukraine joining the NATO military alliance as he prepares to host Ukrainian President Volodymyr Zelenskyy at the White House on Friday.

“Look,” Mr. Trump said, “it’s not going to happen. … I could be very nice and say, ’Oh, well, we’ll look into it.’ It’s just not going to happen.”

Mr. Trump’s remarks came during an Oval Office meeting with British Prime Minister Keir Starmer.


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Speaking in an interview days after returning from Moscow, Thomas Graham, the senior Russia adviser in President George W. Bush's White House, said that the current U.S. administration's hopes for a quick cease-fire to end the Ukraine war are misguided.

The Kremlin is prepared for long negotiations with the U.S. Still, Moscow currently holds the upper hand, and there's little expectation of a wholesale "reset" in relations with Washington, the veteran U.S. Russia expert said. Graham had traveled to Moscow unofficially just days before U.S. and Russian negotiators met in Riyadh on February 18.


4. North Korea Has Sent More Troops To Russia – South Korean Intelligence - RFE/RL

South Korea's YTN television reported, citing Seoul’s intelligence agency, that the scale of the contingent was not immediately known.

South Korean and Western intelligence agencies have said that about 11,000 North Korean soldiers were sent to Russia last year to help it fight a Ukrainian offensive into the Kursk border region. "Some additional troop deployments" appear to have taken place, an official said. "The exact scale is still being assessed."


5. Chinese Military Crosses Taiwan Strait Median Line Without Warning For 'Shooting Training' - UPI

Taiwan's Defense Ministry said that a Chinese military joint air-sea drill, including live fire and warplanes, crossed the median line of the Taiwan Strait without warning.

Taiwan's Defense Ministry said on X that a total of 32 Chinese military aircraft were spotted as Taiwan monitored the drill. Taiwan said there were 11 sorties of Chinese military planes, with nine crossing the median line of the strait.


6. Why Is China So Worried About Food Security? - RFA

China has unveiled its rural “revitalization” plan for 2025, listing “ensuring the supply of grain” and overall food security as its top priority.

A farmer sprays pesticide on a wheat field in Liaocheng, China, March 20, 2024. (AFP)

“China’s grain supply, overall, does not surpass demand; instead, it remains in a state of borderline sufficiency,” Han Wenxiu, director of the Office of the Central Rural Work Leading Group under the ruling Chinese Communist Party’s Central Committee. He said this year’s rural policy outline, known in China as “Document No. 1,” will focus on efforts to “stabilize” an area of arable land that will serve as the country’s grain basket.


7. Report: China Has Half A Million Uyghurs In Prison Or Detention - RFA

Beijing has expanded its subjugation, though it insists that normalcy has returned to the region, researchers find.

China still has more than half a million Uyghurs in prisons or detention centers and has expanded its repression of the ethnic group, a new report says, despite Beijing’s assurances that the northwestern region of Xinjiang has returned to normalcy.

Another 3 million Uyghurs were subjected to forced labor in 2023, according to the 30-page report by the Simon-Skjodt Center for the Prevention of Genocide at the United States Holocaust Memorial Museum in Washington.


8. Hong Kong Pledges $127.67 Million To Create AI Institute - UPI

Paul Chan, Hong Kong's financial secretary, said the investment will be used to "spearhead and support" innovation in the field and use AI as an "industrial application."

Chan said the institute will become the home for Hong Kong's most talented AI researchers to study and apply artificial intelligence. He said the Hong Kong Investment Corporation Limited will host the first International Conference on Embodied AI Robots.


9. U.S. Intelligence Head 'Not Told' About UK's Secret Apple Data Demand - BBC

In a letter, Tulsi Gabbard, the director of U.S. National Intelligence, said she sought further information from the FBI and other U.S. agencies and that if the reports were accurate, the UK government's actions amounted to an "egregious violation" of U.S. citizens' privacy.

Earlier this year, the UK government asked for the right to see the data, which currently not even Apple can access. The tech giant last week took the unprecedented step of removing its highest level data security tool from customers in the UK.


10. EU Launches Clean Industrial Deal To Overhaul Energy Sector - D.W.

The European Commission’s Clean Industrial Deal aims to cut tens of billions of euros from fossil fuel import bills in 2025.

Some measures include speeding up the permit process for sustainable energy projects, changing the tariff structure on energy, and increasing subsidies for renewables. "The fact that the U.S. is now moving away from the green agenda... does not mean that we would do the same. The opposite. It means that we need to step forward," said EU energy commissioner Dan Jorgensen.


11. North Korea Behind $1.5 Bln Crypto Theft, Says FBI - AFP

The bureau said a group called TraderTraitor, also known as the Lazarus Group, was behind the theft of approximately $1.5 billion in virtual assets from the cryptocurrency exchange, Bybit.

It said they were “proceeding rapidly and have converted some of the stolen assets to Bitcoin and other virtual assets dispersed across thousands of addresses on multiple blockchains”.

Lazarus Group gained notoriety a decade ago when it was accused of hacking into Sony Pictures as revenge for “The Interview,” a film that mocked North Korean leader Kim Jong Un.


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Electricity was restored throughout most of Chile Wednesday and a state of emergency was lifted after a nationwide power outage.

"What happened today is outrageous," Chile's President Gabriel Boric said Tuesday in a televised address as he announced a state of emergency. According to the National Disaster Prevention and Response Service, the blackout impacted about 14 of Chile's 16 regions. Mobile and Internet services were down, along with Chile's transportation network, which stranded thousands of commuters.


13. Freedom Declined Globally, But Bright Spots In Asia - Report - AFP

Freedom declined across the world in 2024 — for the 19th year in a row — fueled by armed conflicts, political violence, and an unprecedented year of elections, democracy watchdog Freedom House said in its annual report.

Turmoil in Bangladesh

But amid the overall decline, South Asia led a series of bright spots. 34 countries, including Bangladesh, Bhutan, Sri Lanka, and Syria, registered improvements. The report's co-author, Yana Gorokhovskaia, said 2024 was especially volatile due to the unprecedented number of elections held around the globe.


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UPS: At current share prices, the stock sports a 5.6% dividend yield, and with transformative changes afoot at the package delivery giant, UPS looks like a good opportunity for yield-chasing investors.

Brookfield Renewable: After its recent sell-off, Brookfield Renewable looks like one of the most attractive renewable energy dividend stocks to buy now. At recent share prices, it offers a juicy 5.4% forward yield.

Conagra Brands: The owner of well-known brands as Slim Jim, Reddi-Wip, and Orville Redenbacher's, Conagra's ultra-high yield offers a worthwhile incentive to hold the stock, but only for investors who are confident in the company's ability to endure the downturn and return to growth.


15. Utah Could Be The First State To Hold Bitcoin As A Reserve, Says Satoshi Action Fund CEO - TheStreet

Speaking with Roundtable host Scott Melker, Satoshi Action Fund CEO Dennis Porter revealed that more than 50 pieces of Bitcoin-related legislation are in progress across at least 22 states.

“Utah has not only passed it out of the House committee and floor, but it also just passed the Senate committee,” Porter said. “It is headed towards its very final vote in the Senate. We will know in the next three weeks if Utah will become the first state to pass this into law.” While not every bill will succeed, Porter is confident that at least four to five states will pass their Bitcoin reserve legislation this year.


16. Fish-Rich Diet Can Slow Progression Of Multiple Sclerosis, Study Suggests - UPI Health

A new, long-term Swedish study suggests that a diet rich in fish may help slow the progression of the incurable, often disabling autoimmune disease of multiple sclerosis.

While several past studies have shown a powerful relationship between the omega-3 fatty acids found in oily fish, such as salmon and cod, and the prevention of MS, the new effort appears to also show that fish consumption can slow down the progression or worsening of the disease over lengthy periods of time.


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