Reduce Government Size and Increase Efficiency?

We Have An Excellent Example of How To Do That – If That Is Really The Goal

The Trump/Musk “Reform” Model

By now, most people seem to have figured out that the current administration’s goal for the government has little to do with government efficiency or effectiveness but is solely focused on downsizing as an end unto itself. Still, there are folks who continue to support the effort because they really do want a more efficient government, and they hope the DOGE rampage will at least help make it happen. Good luck with that hope.

 Revisiting The Purpose Of All This Effort

 So, just to be clear, let’s review what might motivate any given effort to reshape government.

• There are those who see government as a problem for its very existence. They seek to eliminate it at every opportunity and eliminate its oversight and regulatory functions. The extreme elements of Libertarianism, people like Peter Thiel, and no small contingent of the Heritage Foundation/Plan 2025 group comfortably reside in this space.
• Others simply want to maximize their own power and economic returns; they look for opportunities to cut out anything the government might do to limit such goals. Things like work safety laws, anticorruption rules, limits on concentration of power within an economic sector (remember when we had over a dozen major airlines?) are examples of things they seek to eliminate.
• Some think government should run like a business, with no operation running at a financial/cost deficit. Those who think the US Post Office should fully pay its own way are an example of this group. That such a thing as a universal service is more important than isolating costs and “profits” does not ring a bell.
• There actually are some agencies that do this pretty well – MEDICARE is a remarkably low overhead agency, beating out insurance companies on a cost basis by orders of magnitude. But for many agencies, the service/goods delivered are far more important than costing as though these were businesses.
• Lastly, there are those who actually think that it is a good thing to always be on the lookout for opportunities to improve government performance, to improve performance in measurable ways, and to save costs where possible. My feeling is this is, these days, the smallest of the various elements seeking to change government, but their focus is correct.

A Relook At How This Is Done Correctly – A Sterling Example

A friend reminded me in a conversation recently that we actually had a major government reform not all that long ago that was, by any measure, a smashing success.

You might recall a fellow named Bill Clinton was elected President some years ago, with Al Gore as his Vice President. One of the first task assigned to Gore was a soup to nuts review of government operations and organization, looking for better solutions wherever they could be found. I happened to be spending some time at the Brookings Institution at that time, a great place to watch such an endeavor.

Most people have completely forgotten this reform effort. Why? Because it was done so smoothly and quietly, so effectively that it constituted little more than a speed bump in disrupting current operations while doing the homework and coordinating the changes to make for better governance.

The Gore effort built a team of expertise across a wide range of requirements. They worked closely with agencies to find opportunities to work better, and teamed up with those agencies to make it happen. There was no “us/them” split – everyone shared common goals of getting it right while respecting workers and minimizing unnecessary disruptions.

So, How Did It Go?

In a word, splendid. At the end of the process, government rolls were reduced by about 400,000. Several functions were improved, eliminated, combined, or transferred to more suitable placements. By every measurable standard government got leaner, more effective, and better organized – all without turmoil or crass treatment of those who dedicated their lives to public service. Good outcomes, excellent process.

You may recall that Clinton was the last president to have a budget surplus. The Gore effort was a key part of that rare success.

The Cornerstones: Genuine Intent and Excellent Coordination

So, government reform certainly can (and should) be done. A genuine intent to not just downsize but to improve is a cornerstone. Same for making those in government part of the process and not the target. The government is big enough and complex enough to handle a lot of change successfully. It simply requires adults with relevant experience and more than a simplistic goal to do it right.

We see none of that with DOGE, Plan 2025, or Trump. One hopes further damage can be limited and over time much of what they are doing wrong can be erased. The government will surely be smaller under the DOGE axe, but at this point only an idiot would think it is getting better and more effective.

It did not have to be this way. Elections have consequences.

Three Other Topics

One, we noted in this blog right after the election that the most serious risk to democracy with the Trump administration could be a decision to simply ignore court orders. Given the unwillingness of Congress to control ANYTHING, such a step would begin the serious unravelling of American democracy. We may be here with the case of the man illegally and improperly deported and the administration so far refusing to bring him back for proper processing. More rests on this one case than can be expressed.

Two, the Tariff mess is even worse than predicted. The damage these will do and the chaos in Trump’s daily back and forth are terrible. China must be laughing themselves silly. In this and in other ways. Trump is putting America firmly on a path of isolation and weakness. He grossly overestimates our negotiating potential given all he has damaged.

A number of people in the auto and steel industry like the tariffs, believing this will bring manufacturing jobs to America. It will not happen with tariffs like this, and everyone will be paying more for everything. You might want to refresh yourself on stagflation. We have not suffered that calamity in over 50 years, but it looks increasingly likely now. A simple recession might be the best we can hope for in the coming months.

Three, the Hands Off protests last weekend were impressive. About 1100 locations nationally, in every state, and about 100 more internationally in support of the American gatherings. In my own small city, the turnout was close to 10% of the  total urban area population, which was remarkable. Everywhere it seemed a healthy mix of all sorts of Americans turned out. It will be interesting to see what may come from all this.

While we are at it, hats off to Senator Cory Booker and his 25 hour, 5 minute speech, all of it actually substantive and thoughtful. Looks like leadership by example to me.

See you next week.

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