Elon Musk and Vivek Ramaswamy say DOGE will cut $500 Billion in Government Spending annually.
While the details behind the newly created Department of Government Efficiency (DOGE) are still relatively unknown, one thing is clear; The cuts in government spending will be massive. The dynamic duo plan to cut $500 billion from federal expenditures, focusing on tax dollars that are unauthorized by Congress and being used in ways never intended by Congress. Once they have reached their initial target, they will focus on plans that will streamline excessive government spending, such as the Corporation for Public Broadcasting, which receives $535 million a year; Planned Parenthood, which receives almost $300 million per year; and international organizations that receive $1.5 billion in grants per year, to name a few.
The above-mentioned items are relatively small compared to many other unauthorized expenditures.
The federal government spent about $516 billion on programs whose Congressional authorization has expired, and the list goes on and on…
- Opioid treatment ($48 billion)
- State Department and foreign affairs programs (38 billion)
- Housing Assistance ( $37 billion)
- Justice Department, domestic violence ($35 billion)
- Education Department, K-12 funding ($29 billion)
- NASA ($25 billion)
- Health Care and Student Loan programs ($23 billion)
- International security programs ($11 billion)
- Head Start ($12 billion)
- National defense programs ($11 billion)
- Workforce development ($10 billion)
- Pact Act ($9 billion)
- Childcare funding ($9 billion)
- Higher education funding ($8 billion)
- FAA ($7 billion)
- Immigration and Nationality Act ($7 billion)
- Energy policy ($7 billion)
- National Oceanic and Atmospheric Administration – aka NOAA ($6 billion)
- State housing granted ($6 billion)
- Helping Families Save Their Homes Act ($4 billion)
- Other spending, including water infrastructure and health care ($53 billion)
Once these cuts are implemented, the cash drained from the system will eventually impact the broad-based markets.
Companies like Moderna Inc. ($MRNA), FedEx Corp. ($FDX), CVS Health Corp.($CVS), and Honeywell International Inc ($HON) are among those that will most likely be affected by funding cuts, as well as industries ranging from aerospace equipment and defense manufacturing to biopharmaceuticals and health-plan providers.
Below is a Monthly Candle Chart of Honeywell International, Inc.
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