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Why the Trump-Musk buyout offer risks dumbing government down

8 1
01.02.2025

On Jan. 28, the Trump administration announced that it was offering a buyout to some 2 million federal workers. Those who accept this offer will receive full pay and benefits for 8 months. The expectation is that 5 to 10 percent of federal workers will accept this offer resulting in savings estimated at $100 billion annually.

This approach is appealing, at least on the surface. The federal government workforce is bloated. The Department of Government Efficiency or DOGE, led by Elon Musk, clearly sees an opportunity to substitute capital for labor. Artificial intelligence will increasingly be able to perform many of the tasks that are now performed by federal workers.

The potential savings are alluring, but perhaps also illusory.

Corporate downsizing was all the rage among Fortune 500 corporations in the 1990s. Grand promises were made to shareowners that significant efficiencies could be achieved with a smaller workforce. The efficiencies to be realized in downsizing a workforce are appealing in theory but can and often do prove elusive in........

© The Hill