Elon Musk’s Doge may have completed a large part of his work in the German Bundestial Bureaucracy, but the trickle-down effect of Musk chainsaw contributed to the downward employment revisions that President Trump’s IRE drew and led to the now famous dismissal of the Commissioner for Labor Statistics.
The cuts of the Doge in state jobs contribute to downward employment revisions, since the government usually reports its salary statements too late at the Bureau of Labor Statistics (BLS) and often leads to major revisions later, said Mark Zandi, chief economist at Moodys Analytics Assets. He noted that the government did not report on the initial employment estimate provided by the BLS in time.
“This was not much important if the government’s employment was stable, but now that the government’s jobs declined, the cuts in the revisions are taken up,” said Zandi. He added that the effects of DOGEs are also expanded on the statistical agencies themselves, including the BLS, in which the employees slow the processing of employment documents and lead to larger subsequent revisions.
According to BLS, July’s Work report (Published on August 1) showed a modest addition of 73,000 jobs. Striking, the workplace gains from May and June were revised by 258,000. Since employment in May increased by only 19,000 and 14,000 in June, the three-month average salary account growth fell to only 35,000 after 123,000 in the previous year.
President Trump intensively on August 1st ordered the shooting by Erika Mcentarfer, the commissioner of the BLS.
With regard to the economy, the Pantheon macroeconomics found that the cuts of Doge pounded by about 0.3 percentage points from the US GDP growth in the second quarter, especially due to a decline in the non-defense spending of the federal government by 11.2%of a direct result of Doge (Department of Government Efficiency). Analysts believe that state expenditure in the third quarter will remain roughly flat, since expenditure for state, local, local and defense spending on a further decline in the non -defense component of the federal government is compensated for by 5 to 10%.
Zandi believes that persistent dog cuts increase the likelihood of recession. “The dog is probably more likely to react like a caustic of the economy as a cliff event, which leads to a recession,” he said. In the meantime, guidelines such as higher tariffs or restrictive immigration rules probably have much sudden and more harmful to the economy, which may cause a recession directly, said Zandi.
Apart from the figures, Zandi marked deeper risks, which resulted from reducing the workforce of Doge. He warned that the settlement of jobs in statistical agencies has already worsened the quality of federal data – a symptom for the unintentional consequences for state services.
“Government employees have important jobs that are of crucial importance for the provision of important services for taxpayers,” said Zandi. “If jobs are shortened and these services are not performed promptly and competently or are not provided, there may be considerable negative effects.”
He cited examples that range from weather reports to the disaster reaction for inspections of food safety that protect national food supply.
