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wow VI and Elon just put out new information on the plans that they have to lay off thousands tens of thousands maybe even hundreds of thousands of government workers in an oped in the Wall Street Journal and through other interviews we get a bigger picture of just how many people might be getting asked and what's going to happen to them let's talk about that and some of the reactions that we're seeing so far especially from the left take a look at this Elizabeth Warren on the left Donald Trump picked an unqualified billionaire wrestling Mogul to lead the Department of Education this is an insult to our teachers and every kid in America who relies on a good Public public school education always think it's really interesting just seeing sort of the freak out when they're appointments from the other side and this is because uh Linda uh was was appointed to be the Secretary of Education and uh you're seeing the same kind of freak out with do take a look at this Crystal Ball Elon Musk plans to destroy as much of the government as possible because he recognizes it as the only Force capable of limiting his labor abuses ouch now saying the people who work for Tesla and SpaceX are abused inv fire metal destruction oh no SpaceX ejects clean poble water to cool its spacecraft when uh when they take off and land and that's now causing environmental destruction tax dollar plunder and Limitless Robber Baron domination what the weaker the elected government the stronger the plutocrats basically she's trying to say like hey if you get the government out of the way they won't after the trumps and the Elon anymore which frankly she's probably somewhat right here Elon does not like the SEC and I have a feeling this going to be like the first agency he wants to take a giant ax to but remember elon's not in government he's just advising Trump we'll talk about that here uh Trump AIDS are irritated Elon seems to think he is the co-president but in truth I think he believes he is vastly more powerful than Trump oh yeah I mean she's probably right about that but clearly she a little bit upset so why are they so upset well maybe it's because now Elon Musk is on the cover of time electric vehicles become the richest man buy Twitter launch rocket bring rocket back implant human brain chip get Trump elected work from Mara Lago next SL2 trillion next fly to Mars I mean it's kind of a cool resume you got to give him that but all right let's uh let's understand from here what plans are we seeing from V and Elon well great way to start is an oped from none other than the vacant Elon yes they actually have an opinion editorial piece in the Wall Street Journal and we're going to be able to go through and see what their argument is the Doge plan to reform government following the Supreme Court's guidance will reverse decades long executive power grabs all right I like the picture by way you got sort of maybe like what almost looked like an Elon VI not really but uh kind of trying to reign in the government here all right so what do we got here our nation was founded on the basic idea that the people we elect to run the government uh run the government but this isn't how America fun functions today most legal edicts aren't laws enacted by Congress but rather rules and regulations that are promulgated by unelected bureaucrats tens of thousands of them yeah this is going to be it's not just the SEC but it's in part a ref ref to the SEC the way you have to think about this is you know government innovates way slower than uh than than the public markets do uh or the private sector does and Congress is way slower than even government agencies so what happens is when there's new technology or new innovation or a new way of doing business or just a new something what ends up happening is agencies try to come up with rules to help that new something fun function so it's not like Congress is like here are the rules for full self-driving instead you know you've got Nitsa and others that are like okay let's let's maybe do something like this because Congress put us in power to come up with the best solution when if somebody ever wants to have a robo taxi this basically makes sure that at least there is a way to try to balance safety and innovation without every single time having to go to Congress which is very very slow and often things get held hostage in Congress that's the intention but you know good intentions can obviously get burdened and uh become problems and that's basically what VI is saying here is that hey you know all these regulations they just end up causing problems they're expensive and they just burden the private sector why don't you let the private sector regulate itself and that's obviously where you go okay well can the private sector regulate itself well it depends are you a full libertarian then the answer is yes are you somebody who thinks there should be some balance of government well then you need government agencies but anyway uh VI basically says hey you know these bureaucrats think they're immune from getting fired and let us tell you they are not that is anti-democratic because we should be able to elect our leaders who make these decisions not uh you know all these appointed sort of uh uh Ru making body folks in their committees who are making other the rules it's VI is taking a very sort of populist approach like bring the power back to the people there's obviously always a counterargument but he says that this power grab by agencies is an existential threat to our Republic he says we won't just write reports or cut ribbons unlike government condition or committees commissions or advisory committees we won't just write reports or cut ribbons we'll cut costs which is actually kind of a little bit ironic because technically doge is just an advisory committee from outside the government and then he even goes on to say that here I'm pretty sure Viv wrote this and Elon just sort of read it and signed off on it it sounds very Vish but anyway it says the two of us will advise Doge at every step to pursue three major kinds of Reform regulatory recisions administrative reductions and cost savings I mean all that sounds great uh you know obviously until it creates problems but but anyway and look I'm all for more efficiency don't get me wrong I'm not trying to take a side here but I do think it's funny when they say we're not just going to be an advisory committee and technically they're an advisory committee and then they even say the two of us will advise do at every step of the way yes you will and Doge will advise the president so the big legal precedent that uh Viv and Elon really want to milk here is the overturning of the Chevron Doctrine this is a pretty big one because usually federal courts when problems would come up they would just say all right like what did you know what what did the agency say about this I'll just come up I'm going to make up an example let's say uh you're finra uh and uh or or you know what let's do a different Let's do an easier one that's may be more relatable let's say you're the Department of Housing and Urban Development and everyone wants to build adus and rent them out separately and a HUD comes in and says no we will not allow that for reason XYZ well it used to be that federal courts were you know in in lawsuits when somebody goes this isn't fair I should be able to build an accessory dwelling in it used to be that a federal court would say well I mean the Department of Housing and Urban Development they get priority over you so we're just going to stick with them the Chevron Doctrine Balan this back balances this back out again which is probably a good thing because you want courts to be able to provide balance here and not just bias to regulatory bodies so this is a good thing and they want to weaponize this weaponize it uh to basically fight agencies in court because what'll happen is you'll use executive orders to try to limit the reach of certain agencies or eliminate certain rules those agencies are going to sue you and then you're going to use the Chevron Doctrine as a precedent defense to try to say why the agency is not always right and we have to actually balance the removal of potential executive action which is then benefited by these two cases right here Franklin versus Massachusetts and Collins versus Yellen I put a little summary of those Collins versus Yellen gives the president the authority to control the executive and that can't be impeded so if Trump is signing executive orders that are drafted by Doge it's really hard to overturn those it actually kind of flips the balance of power from the agencies to the president especially in coordination with the Chevron Doctrine which used to flip it in favor of the agencies so so think about that for a moment if my right hand is the agency my left hand is Trump it it used to be that presidents just really wouldn't do anything and agencies were elevated so when somebody sued an agency the agency basically had priority like a person or or a business would be like here so the agency always W Chevron does this it sort of brings the businesses and people more equal with the agencies and then if you add to this Collins versus Yellen and Franklin versus Mass and a president who actually wants to do something which we think Trump wants to do with executive action and I think he's going to get pressured to do it by Elon and VI and and he might how much he will we don't know but now what you do is you have a president that actually has more power than the executive agencies which is the intention after all anyway but if he's willing to do stuff by executive action he could slam dunk a lot of agencies so he's got a Trump's got a lot of real power here and and if he follows the recommendations of do yes they can actually practically effectuate massive layoffs at the federal government they can pull this off they've got the legal backing to do this and we know Trump is not opposed to a fight in court so uh I wrote here they think Trump will sign off on whatever they say he might well that's kind of why elon's been hanging around so much they talk about drastic reductions in Federal Regulations massive headcount reductions across Federal bureaucracy uh this by the way is potentially in recession inducing uh in the short term but in the long term yes it does create more efficiency because people will then have to enter the free market and and find jobs uh but this is also problematic the reason I find this uh problematic uh is I I sent this tweet out and I just want you to think about it as well okay so just think about this for a moment okay Doge we're going to fire federal government workers Viv doge is goal is to help support their transition into the private sector the private sector in other words like people are getting oh man does does the private sector really want the government workers you know that's that's going to be something else to consider here is it's not going to be that straightforward to just say ah everything's going to be Gucci docchi right it's kind of hard to do these sort of transitions here but whatever uh president can use existing laws to give them incentives for early retirement make voluntary Severance payments uh this will help us govern competitive service we're going to require federal employees to come to the office 5 days a week which would result in a wave of voluntary terminations that we welcome maybe uh you know John th was arguing that about only 6% of government workers actually come into the office all the time uh the way he phrased that sort of implies that in order to qualify for that you you have to basically be in the office 100% of the time and let's be real even in the private sector most people don't come in 100% of the time even though they might come in 90% of the time technically you'd be part of that bundle of people who don't come in all the time so I think John th the new Senate Majority Leader who's taking over from McConnell is like kind of being a little extreme with that comparison uh but then there's also bias from OPM which is the uh office of personnel management or the Office of Management and budget review they say that 80% of federal work hours are currently spent in person so there's a a little bit of a debate in terms of what's going on here ramaswami expects massive reductions and of course the president of the largest federal employee union says that hey this you know this isn't backed up by the data this isn't fair so so you're really you know you're kind of doing what they want which is you're starting to piss people off in government and and honestly a lot of people are all for that you know I'm all for more government efficiency too they also talk here about how uh you know some people say that oh well you know once money is authorized by Congress somebody can't stop it like a president can't stop it via the 1974 empowerment Control Act but then they counter that and argue unless Trump says that's unconstitutional in which case basically sue him and there will be endless lawsuits oh trust me it's going to be extremely entertaining uh and the courts are going to have their hands fulls on full on this one probably more so than uh the courts are busy with immigration cases they're going to have more lawsuits against Trump I feel like but anyway Pentagon recently failed at seventh consecutive audit is another thing that rum R says here now it's worth noting look I covered this and and I just I want you to have the logic of this okay this is a game of 40 chess what they're doing by mentioning this government audit thing and it's it's actually brilliant okay you got to give it to them but it's also not entirely fair so the Pentagon didn't get audited until 2018 okay that's that's a big problem in itself like why the H double hockey sticks was our Pentagon not audited until 2018 and Department of Defense I don't know but we started doing audits in 2018 and we went from like a success ratio of our audit at like 16% like you know no comments no review issues to compliance at about 55% so we're a little more than half compliant now with our doj audits for the Pentagon and and whatever or sorry not doj Department of Defense DD so like you're making really good progress yes they're still technically failing understandable that's a great headline but you're not failing on the full $800 billion you are failing on a chunk of things and so don Jr is right when he talks about the soap dispensers uh that that Boeing overcharged or you know as we used to say like the um oh what was the old joke the $100 Hammer right uh these these things are happening this is true Boeing allegedly ripped off the government by overcharging almost 8,000% for soap dispensers uh yet Boeing is not in trouble for money laundering right yes so so there there are reports that come out uh that do say hey like we may be getting ripped off like here's the October 25th audit of c17 spare parts uh and if you go through this you could find okay yeah looks like for dispensers we got overcharged take a look at this we initiated an audit and response to the allegation the dod hotline concerning spare parts pricing the allegation stated that Boeing overcharged the Air Force for lav soap dispensers on a c17 uh and then of course you know they go into trying to figure this out so like don't get me wrong the the government does make oopsy dupsies but this idea that the government is entirely failing its audits at the dod isn't entirely true and what's fascinating is they actually expect that by 2028 they'll be 100% compliant which the hilarious thing about that that is that'll still be under Trump so the impression that people are giving in social media now is before Trump the government's failing all of its audits well if they actually meet the 100% which they expect they're already expecting this before Trump if they meet the 100% by 20128 under Trump trump will go I took them from 100% failure to 100% success it's not true but that's how it's going to get taken away like that'll be the big takeaway and and just it's brilliant it's like 40 chess it's kind of like what I joked four years or actually even more ago I'm like how funny would it be if Donald Trump loses to Biden all the inflation happens under Biden's Administration then there's no inflation under Trump and Trump comes back for a second term with no inflation everybody will just blame Biden for all the inflation and fate loves IR it's so entertaining uh anyway yes um soap dispensers 80 80x markup in the finding kind of crazy huh uh it's also kind of crazy to look at some of these things see look at this is how they kind of break this up uh the Air Force paid fair and reasonable prices for nine spare parts we could not determine whether they paid fair and reasonable prices for 25 Parts the Air Force did not pay fair and reasonable prices for 12 spare parts I I kind of think that's entertaining just how like why is this done after the fact look at this the Air Force did not pay reasonable prices for 12 of 46 for 26% % of the c17 uh parts we reviewed okay uh for the purpose of our analysis if a price was 25% or more uh we considered it unreasonable okay so you could do a 24% markup and get away with it and and that would be uh that would be considered reasonable got it all right uh so more than 80 here here we go more than 80 times the commercially available cost for soap dispensers led to the Air Force overpaying by $149,000 for soap dispensers uh the right shows the typical counter amount and the left shows what the uh the the do um or you know whatever um what what the government actually the Air Force actually paid for so let's see here yeah and they actually go into like little pieces of various different commercially similar pressure transmitters I mean at least it's being done you know but it is certainly ENT in uh and it it's much it's a much better headline to go oh 8,000% overcharge than it is to say they overpaid by $149,000 like that that's bad but it doesn't sound as bad as 800% that's for sure just because the government's budget is so large and I'm not saying we shouldn't be accounting for that or dealing with it but uh what I'd like to do now is Play a clip that's going viral and it has to do with Milton fredman it's been really entertaining uh it's his blueprint for getting rid of uh government agencies and it's really entertaining and it's worth listening to so let's uh let's get into it 14 is a lot for television so I want to just go right down the list quickly and have you give me a thumbs up or thumbs down keep them or abolish them Department of Agriculture abolish gone Department of Commerce abolish gone Department of Defense keep it Department of Education abolish gone energy abolish how accepted which remember the Department of Education getting abolished is an idea of Doge and Elon and V and Trump energy ties in with the military well then we shove it under defense the little bit that handles the nuclear right that ought to go under plutonium and so forth goes under defense but we abolish the rest of it Health and Human Services there is some there are there is room for some public health activities to prevent uh uh uh contagion uh such a thing as for example so you'd keep the National Institutes of Health say and the Center for Disease Control National those are mostly research agencies no no that's a question of whether the government should be involved that's also a very good point there's there's like should the government be funding research or should that just be the private Market in financing research and the answer is no well that's a complic that's a very complicated issue and it's not an easy answer with respect to that will eliminate half of the Department of Health and Human Services okay one half there we go Housing and Urban Development oh didn't even pause over that one Department of the Interior oh but the Housing and Urban Development has done an enormous amount of harm my God if you think of the way in which they've destroyed uh parts of cities under the rubric of of eliminating slums uh Jack you know you remember and Martin Anderson wrote a book on the Federal bulldozzer describing the effect of the Urban Development there have been many more dwelling units torn down in the in the in the name of public housing that have been built Jack Kemp has proposed this is basically the idea that uh when the government gets involved in housing it's so inefficient that they will actually demolish uh old apartment buildings that are ugly and deemed you know uninhabitable uh which may be true uh but then they say they're going to replace them with new but then you get caught up in so many Environmental ulations or just zoning or whatever or parking issues or whatever that you just don't end up building at all and so now you're net negative selling to the current inhabitants of public housing their unit their townhouse their apartment for a dollar a piece and just shifting the ownership to the people if you got rid of the Department of Housing and Urban Development it would be worth doing that all right done that's gone Department of the Interior your beloved national uh Park Service well given that the problem there is you first have to sell off all the land that the government owns but that's what you should do you it could could be done you should do that there's no reason for the government to own the government now owns something like onethird of all the land in the country and that's too much should go down to zero should go down to well not entirely zero they ought to own the land on which government buildings are okay terrific Department of J now he's laughing but honestly Milton frit sounds really reasonable here and I think the reporter's kind of like you're a clown you're Looney just I kind of like him Justice oh yes keep that one keep that one labor no gone State keep keep it Transportation Gone Gone the treasury you have to keep it to collect taxes all right collect taxes through the treasury Veterans Affairs you can regard the veteran affairs as a way of of paying essentially salaries for services of those who have been in the Armed Force but you ought to be able to get rid of it you should be a pay off pay it off pay off lump sums perhaps and just get rid of it okay Milton fredman if you are made dictator for one day the next day the American government no no I don't want to be made dictator I don't believe in dictators I believe we want to bring about change by the by the agreement I love this for the citizens I don't I don't believe in arbitrary let me put it this way then I persuade if we can't persuade the public that it's desirable to do these things we have no right to impose them even if we had the power to do it all right nice from 14 to and that's obviously where people today are like Trump has a mandate departments down to B fundamental functions what are its fundamental functions a pre preserve the peace defend the country all right provide a mechanism whereby individuals can adjudicate their disputes that's the Jus justice department Department protect individuals from being coerced by other individuals the police to function right and now this is both the central government and the state and local governments the police functions primarily local and Central right and those are the fundamental functions of government in my opinion Milton Freedman thank you very much that was amazing absolutely amazing so there you go full details and plan on do the department of governmental efficiency and if you want an efficient Alpha report totally for free every day when the Market opens about 15 minutes before it texted an email to you go to meetkevin.com Alpha get your Alpha report and get your trade ideas options 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