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Economic Fallout of DOGE [1]

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Date: 2025-02-16

Why isn’t there more a discussion about the economic impact of reducing federal employment. The goal of DOGE is a 75% reduction of non military Federal Workforce .

If you look at historical deficit charts, they tend to spike during economic downturns—partly because the federal government doesn’t lay off workers when the economy contracts. This stability acts as a backstop, preventing an economic free fall.

During the Great Recession, the Obama administration sent funds directly to states to help cover budget deficits caused by plummeting tax revenues. This helped prevent mass layoffs of state employees, stabilizing the broader economy.

Now, however, Trump and Republicans are doing the opposite—slashing federal employment. This will have ripple effects on the broader economy, especially without the federal government stepping in as a stabilizing force. In fact, if a downturn happens because of these layoff , it could give them further justification to cut federal jobs, causing a worsening the economic spiral.

And this isn’t even considering the fact that federal employees do essential work that keeps the economy running safely and efficiently. Their loss could cripple economic growth by disrupting critical services, regulatory oversight, and infrastructure support.

Am I missing something here, or are we playing Russian roulette with the U.S. economy and the business media is completely silent.

Here’s the list of States and Washington, D.C. by the percentage of their workforce made up of federal (civilian, non‑military) employees:

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[1] Url: https://dailykos.com/stories/2025/2/16/2304120/-Economic-Fallout-of-DOGE?pm_campaign=front_page&pm_source=more_community&pm_medium=web

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