President Donald Trump steps into the fourth month of his second term, and his administration is a record cost cutting achievements, even if the US economy registered its sharpest decline in two years, according to US trade department data published on Wednesday.
The White House claims that the Government Department (Doge), founded by Elon Musk, has saved over $ 100 billion. However, government data show This gross domestic product (GDP) signed 0.3%in the first quarter of 2025, raising the question of whether Doge has saved money at all.
According to the US Ministry of Commerce, GDP fell for the first time after 2022 years, with a decline in 2.4% growth in the previous quarter, which is a lot below economic scientists for 0.8% expansion. Due to the decline, there was a major result of balloons deficit, government spending and lower consumers' costs.
Are Doge's savings in fact?
Elon Musk and Doge have claimed that the average weekly savings are over $ 10 billion, as the department was officially signed in January. “We are talking about almost $ 200 billion and rising fast,” Trump notice BBC on April 23.
In October 2024, weeks before the US presidential election, Tesla CEO promised to cut $ 2 trillion for federal expenses. This target was later changed to $ 150 billion by the end of the fiscal year.
Doge preserves an estimated savings on its website, listing $ 160 billion as of April 20. However, less than 40% of these savings are specified.
Its department claims that about 30% of the total savings are supported by the receipts available on the web, while others were not available for legal reasons. The site allows you to publish all documentation in the “digestible and transparent way”.
Canadian-American venture capitalist Chamath Palihapitiya said in a social media post on April 30 that “the US government had to borrow $ 53B less than predicted because Doge has been saved, among other things.”
So let me get it straight:
1. Energy prices drop about $ 60 with oil
2. 10y door yield falls and is now back to 4.18%
3. The US government had to borrow $ 53 billion less than the predicted money, which DOGE has, among other things.
Not bad.
– Chamath Paliupitiya (@chamath) April 29, 2025
On April 28, the US Ministry of Finance reported Its latest figures for borrowing, saying he hopes to borrow a net debt in a private privacy during the quarter ending in June. This estimate is $ 391 billion higher than in February.
However, the department stated that the figures increased due to the money residue of the lower quarter due to the cash flows of the lower quarter.
Except for these changes, the number of the amended borrowing was actually $ 53 billion less than the number of expected-the number of which, the number of which is related to the costs of cutting the costs of cutting the Trump Administration.
During the January -March quarter, the Federal Government lent $ 369 billion, which is estimated in February, lower than $ 815 billion. The discrepancy was mainly due to a smaller than the expected quarter of the quarter, although the actual borrowing was only $ 2 billion lower than the original forecast in adjusting this factor.
President Trump: Tariffs are not the reason why the economy is low
In recent months, the Trump Administration has introduced new taxes on foreign imports, especially from China, which made consumers and companies rush before prices.
Some economists believe that Trump's efforts to reorganize global trade can lead to inflation and US recession. On the other hand, the White House is confident that the tariffs will work for America in the long run.
One of the few encouraging numbers in the trade department report It was a business investment. Homemade private investment jumped in the first quarter of 21.9%, the highest level from the end of 2021, and business costs increased by 9.8%.
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