Musk’s cuts fail: U.S. federal spending hits record high
Elon Musk, leading the Department of Government Efficiency (DOGE), was supposed to reduce U.S. federal spending. Despite plans for cuts, spending rose to a record $603 billion (CAD 868 billion), according to The Financial Times.
Elon Musk, appointed by Donald Trump to reduce public spending, faces a difficult task. Despite cancelling contracts and layoffs, U.S. federal spending increased to $603 (CAD 868) billion in February, which is a record result, according to next.gazeta.pl. It adds that this amount is $40 (CAD 57) billion more than in the same period last year.
The "Financial Times" writes that savings are negligible, and the increase in spending on healthcare and social insurance erased major cuts, adding that most federal spending goes to social insurance, healthcare, and defence, making significant savings difficult.
DOGE has already reduced funding for public programs and is laying off workers en masse. Key departments, including the Department of Defence, Department of Energy, Environmental Protection Agency, and General Services Administration, which controls federal IT systems, are under fire.
Massive wave of layoffs in the USA
American employers announced the largest wave of layoffs since the beginning of the pandemic in February. Over the course of the month, more than 172,000 job cuts were announced, marking a 103% year-over-year increase. The biggest cuts affected the government sector as a result of actions by Donald Trump's administration, Bloomberg recently reported.
It's not just the government sector that is struggling with job cuts. The crisis has also hit retail and the technology industry – several large companies, including HP Inc. and Walt Disney Co., have announced layoff plans.
