Peter Thiel has voiced his support for the Elon Musk-led Department of Government Efficiency initiative, suggesting it could be a key strategy to prevent significant tax increases.
What Happened: During an interview on Thursday with Piers Morgan, Thiel noted that while many in Washington doubt the success of DOGE, he cautions against underestimating Musk’s potential.
The PayPal co-founder pointed out the unsustainable nature of the U.S. government’s 6% GDP deficit, indicating that the nation faces a choice between cutting spending and waste or imposing substantial tax hikes.
He pointed out that the recent U.S. election reflects a preference against European-style socialist tax increases, making initiatives like DOGE essential.
In response to Thiel’s comments, Musk concurred, stating, “Peter is right on all counts.”
Why It Matters: The DOGE initiative, led by Musk and Vivek Ramaswamy, aims to streamline federal spending and reduce the budget by up to $2 trillion.
The initiative has attracted Silicon Valley’s top minds to identify cost-cutting opportunities.
Ramaswamy has previously stated that most government projects should have a clear end date, with DOGE set to conclude on July 4, 2026, aligning with America’s 250th Independence Day.
Last month, Mario Georgiou, CFA, and executive director, Head of Investments at InCred Global Wealth U.K., stated that the DOGE has the potential to achieve annual savings of $50–100 billion.
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