• Former Treasury Secretary Larry Summers predicts the Department of Government Efficiency (DOGE) program could worsen the U.S. budget deficit and undermine trust in institutions.
  • Summers warns that IRS workforce cuts, part of DOGE reforms, may result in greater revenue losses than savings.
  • Criticizing Trump’s tariffs and DOGE’s approach, Summers likens these policies to “dangerous work with a sledgehammer on a sensitive machine.”

Former Treasury Secretary Larry Summers has sounded the alarm on the controversial Department of Government Efficiency (DOGE) program. Speaking on the All-In Podcast last Friday, Summers predicted that DOGE would end in “disastrous failure,” potentially worsening the U.S. budget deficit and undermining trust in American institutions.

Criticism of DOGE’s Approach

Summers acknowledged that the U.S. government could benefit from more efficiency, aligning with New York Times columnist Ezra Klein. However, he criticized the current administration’s aggressive tactics, claiming they prioritize “mindless savagery” over practical solutions. He argued that DOGE’s reforms risk doing more harm than good, particularly when it comes to addressing the national debt.

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“I think we need much more reform,” Summers said, underscoring his belief that Democrats have lost touch with mainstream American priorities. He added that attacking key federal agencies like the IRS would ultimately backfire.

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IRS Cuts Could Cost Revenue

The White House’s recent decision to reduce the IRS workforce has sparked widespread debate. In February, the administration initiated cuts, followed by deferred resignations and buyout offers. Summers warned that these moves could drain resources, resulting in greater revenue losses than any savings achieved by DOGE.

“We are firing, en masse, people whose job it is to audit individuals like you,” Summers told podcast host Chamath Palihapitiya, highlighting the risks of weakening the agency tasked with tax enforcement.

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Palihapitiya, who revealed he is audited yearly, disagreed with Summers’ perspective. He shared that the government owed him $1,000 in 2024, suggesting his tax filings are carefully prepared. However, Summers pointed out that less than 25% of individuals earning over $10 million face audits, raising concerns about accountability.

Broader Economic Implications

Summers also criticized President Donald Trump’s economic policies, including his “Liberation Day” tariffs. He described them as reckless, creating adverse ripple effects on the global economy.

“This is dangerous work with a sledgehammer on a sensitive machine,” Summers warned, likening the combined impacts of Trump’s policies and DOGE reforms to high-stakes gambling.

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