Elon Musk, alongside entrepreneur Vivek Ramaswamy, has been tasked with leading the newly announced Department of Governmental Efficiency (DOGE), a move signaling President-elect Donald Trump’s intent to streamline U.S. government operations. While the acronym has drawn its share of internet memes, the initiative could represent a meaningful attempt to reform regulatory systems—albeit with tempered expectations.
Setting Realistic Goals in Governmental Reform
The intricacies of the American legal and bureaucratic systems make it challenging to dismantle outdated laws, regulations, or agencies. Large-scale deregulation, while a worthy aspiration for some, is often a legal and logistical uphill battle.
“It is not easy to fire large numbers of bureaucrats, and in any case, their pay is a small part of the federal budget,” notes Tyler Cowen, a professor of economics at George Mason University. He emphasizes that efforts to cut red tape are likely to encounter more setbacks than victories.
Instead, the focus should be on preserving innovation-friendly conditions in emerging sectors such as artificial intelligence (AI). By maintaining a light regulatory framework, the U.S. could encourage advancements in AI, particularly in areas that promise to boost productivity in fields like healthcare and software development.
Balancing Regulation and Innovation
Cryptocurrency represents another sector where regulatory clarity is needed. Cowen points out that efficiency in this space might require more government involvement rather than less. Clear and predictable legal frameworks from the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) could bolster the U.S.’s position as a leader in financial innovation while appealing to the millions of Americans invested in crypto.
This approach underscores an essential nuance: effective deregulation often involves crafting new laws and definitions rather than wholesale elimination of existing ones.
Addressing Housing and Energy Challenges
The DOGE initiative could also find bipartisan appeal by embracing the “Yes In My Backyard” (YIMBY) movement. Advocating for reduced regulatory barriers to housing development aligns with economic growth objectives and addresses pressing social needs. Expanding YIMBY principles to include renewable energy infrastructure, such as solar, wind, and nuclear projects, could attract moderate voters while supporting green energy goals.
Reforming Clinical Trials: A High-Stakes Challenge
One of the most ambitious goals for DOGE could be the deregulation of clinical trials, a move that could accelerate medical breakthroughs. The current system’s complexity—ranging from hospital protocols to FDA requirements—presents significant barriers to translating scientific advances into accessible treatments.
“America is now in a golden age of medical discovery,” Cowen asserts, citing recent innovations like mRNA vaccines and weight-loss drugs. Streamlined clinical trial processes could enable faster development and approval of lifesaving treatments, an appealing prospect for older voters prioritizing healthcare.
The Road Ahead for DOGE
Despite the enthusiasm surrounding DOGE, questions remain about its governance structure and long-term viability. The initiative lacks a defined constituency or established mechanisms for navigating Washington’s entrenched systems. As Cowen notes, “DOGE, and Trump, will have to pick and choose which things to make more efficient.”
The success of the initiative will depend on strategic prioritization and its ability to strike a balance between equity and efficiency. While DOGE’s potential impact is uncertain, its success could redefine approaches to deregulation in the years to come.
