Prominent economist Claudia Sahm has criticized the newly formed Department of Government Efficiency (DOGE) and its leadership's approach to government spending, particularly regarding their stance on the U.S. Census Bureau's 2010 Super Bowl advertisement.
What Happened: The controversy emerged after DOGE posted examples of government spending on X (formerly Twitter), including "$2.5 million on a Super Bowl Ad for the Census."
Former presidential candidate Vivek Ramaswamy, recently appointed as co-director of DOGE alongside Tesla Inc. CEO Elon Musk, responded that "the federal government shouldn't be in the business of buying Super Bowl ads."
Sahm, creator of the widely-referenced Sahm Rule indicator, countered Ramaswamy's position, stating, "Rule of thumb: the Census is in the Constitution. Do your legal job well." She defended the Census Bureau's decision, noting that the advertisement's effectiveness could potentially save taxpayers money.
The Census Bureau had previously justified the $2.5 million expenditure, explaining that every 1% increase in mail-in responses would save $85 million in door-to-door collection costs.
Sahm expressed broader concerns about DOGE's approach, stating, "There is so much good that 'outside the box thinking' in the government could do... but it's being wasted on destructive, simplistic thinking. DOGE is on track to be a wasted opportunity."
Why It Matters: The economist also criticized DOGE's focus on reducing resources and employees, arguing that some efficiency improvements would require additional investment. "A MASSIVE overhaul of the IT as one example would be huge," she noted.
DOGE, announced by President-elect Donald Trump, aims to restructure federal agencies and reduce the government's $6.5 trillion annual spending.
The department has faced additional criticism from former Labor Secretary Robert Reich, who characterized it as "riddled with conflicts of interest," particularly regarding Musk's involvement given his companies' federal contracts and ongoing investigations.
The department is scheduled to complete its work by Jul 4, 2026, coinciding with America's 250th independence anniversary.
DOGE's acronym coincides with the cryptocurrency Dogecoin (CRYPTO: DOGE), leading to a 30.79% price bump in the coin after the department's name was announced. Market speculation attributes this rise to Musk's known association with Dogecoin.
