Could DOGE Really Help Reduce The Colossal Debt Of The USA?

Donald Trump is back, and with him, a breath of renewal sweeps over the United States. While crypto-enthusiasts rejoice at the prospect of lighter regulations favoring Bitcoin and Dogecoin, others wonder if this new economic direction hides a bluff. Between optimism and skepticism, the debate ignites, particularly with the creation of the Department of Government Efficiency (DOGE) under the leadership of Elon Musk and Vivek Ramaswamy.

DOGE: an opportunity to reshape the American economy?

Donald Trump’s return to the White House comes with a bold innovation: the Department of Government Efficiency, nicknamed DOGE. Led by Elon Musk and Vivek Ramaswamy, this entity aims to drastically reduce public spending and simplify bureaucracy.

https://twitter.com/brian_armstrong/status/1858023954776207730

Brian Armstrong, CEO of Coinbase, sees a unique opportunity to redefine the American economy in favor of more freedom.

“The Founding Fathers were brilliant, but they did not anticipate democratic budgetary excesses,” tweets Armstrong.

To remedy this, he proposes a constitutional reform limiting spending to 10% of GDP. A bold idea, but one that raises eyebrows.

Some figures to understand:

• The U.S. debt exceeds $34 trillion, over 120% of GDP;
• A potential cap on spending at 10% of GDP would represent an unprecedented budget cut;
• Budgetary sovereignty with dividends for citizens could redistribute any surpluses.

DOGE thus seems to crystallize reform ambitions, but its proximity to Dogecoin, the famous memecoin, is sure to raise smiles – or eyebrows – depending on perspectives.

The crypto community between euphoria and caution

Crypto-enthusiasts applaud wildly: the price of Dogecoin rose to $0.39 after the announcement, reaching its highest level of the year. But behind this surge, mistrust remains. Musk, often accused of manipulating crypto prices, has already faced lawsuits – from which he emerged unscathed in 2022.

For investors, DOGE becomes a symbol. Coinbase sees in this project the possibility of bringing the United States back to a more responsible and innovative economy, a fertile ground for cryptos. Skeptics, on the other hand, fear that this initiative may be just a facade to divert attention from structural problems.

The crypto community, just like Americans, remains divided:

• Some believe in a future where Bitcoin and Dogecoin coexist with a lighter state;
• Others fear a speculative bubble fueled by the enthusiasm of Musk and Armstrong;
• The curious, meanwhile, observe from afar, waiting to see if DOGE will deliver on its promises.

It is known that Elon Musk, his eyes fixed on an “unsustainable” U.S. debt, seems willing to sound the alarm and stop the bleeding. By integrating this new department, he hopes to restore hope to an economy in search of stability. The bets are open.