WSU Economics Professor Casts Doubt on Effectiveness of Proposed 'Dogecoin' Department of Government Efficiency

Christopher Clarke, assistant professor at WSU's School of Economic Sciences, pointed to long-term federal employment trends showing the proportion of federal workers

A Washington State University economics professor has cast doubt on the effectiveness of the newly proposed Department of Government Efficiency in addressing the federal deficit, highlighting data showing most government spending goes to entitlement programs rather than bureaucratic salaries.

The department, named after cryptocurrency Dogecoin (CRYPTO: DOGE), was announced by President-elect Donald Trump and is set to be led by Tesla (NASDAQ:TSLA) CEO Elon Musk and former presidential candidate Vivek Ramaswamy.

The aim of the department is to restructure federal agencies and reduce government spending by Independence Day 2026.

However, Christopher Clarke, an assistant professor at WSU’s School of Economic Sciences, pointed to long-term federal employment trends, which show the proportion of federal workers in the labor force has actually decreased from 4.3% in 1968 to 1.9% today, despite population growth.

“The number of federal government employees has remained roughly the same for over 60 years,” Clarke said in a detailed analysis posted on X.

He emphasized that non-discretionary spending, including $1.3 trillion on Social Security, $800 billion on Medicare, and other safety net programs, comprises the bulk of government expenditures.

Clarke’s analysis comes in response to Trump's announcement of the department, which aims to drastically reduce government spending.

“The vast majority of government spending goes to programs that people are legally entitled to receive, such as Social Security, Medicare, and Medicaid,” Clarke said.

“Cutting spending on these programs would require either raising the retirement age, cutting benefits, or both. Alternatively, the government could cut spending on the poor, such as food stamps, housing assistance, and other safety net programs.”

Clarke added that existing efficiency efforts through the Government Accountability Office (GAO) have identified $660 billion worth of improvements since 2011, averaging $47 billion annually — approximately 3% of the current $1.7 trillion deficit.

“While I’m hopeful for improvements, most government spending goes to entitlements, not the salaries of bureaucrats,” Clarke concluded.

“There are really only two viable solutions: return taxes to 1990s levels or cut spending on the elderly and poor.”

Sen. Ted Cruz (R-Texas) has expressed cautious optimism about the initiative but warned about the challenges of applying private sector efficiency methods to government operations.

“I think the goal of trying to find ways to make government more efficient, more effective, more responsive to the needs of the American people is a worthy goal,” Cruz said.

“I will say, having worked in the private sector for a long time before coming to the Senate, I think there are some fundamental differences between the way the private sector operates and the way the government operates.”

According to Cruz, the private sector has a profit motive that drives efficiency, while the government does not have the same clear metric for success.

“I think applying private sector efficiency methods to government is very challenging, but I applaud the effort to try to find ways to make government work better for the American people,” Cruz said.

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